SWOT Analysis of H&M based on PESTLE, Porter's Five Forces and VRIO

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY - ...............................................................................................................................3
SWOT Analysis of H&M based on PESTLE, Porter's Five Forces and VRIO - .......................3
CONCLUSION -.............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic Management is the concept of management which is concerned with defining
management, examining the competitive environment, evaluating the internal organisation,
assessing strategies and testify that management introduce the strategies.
H&M is the second largest global retail company offering fast fashion clothing for men, women,
teenagers and children.
This report evaluates internal and external environment of H&M with the help of different
Frameworks and Theories.
MAIN BODY -
SWOT Analysis of H&M based on PESTLE, Porter's Five Forces and VRIO -
PESTLE analysis -
The following is the Pestle analysis which helps in determining the key external factors that
influence H&M mentioned below -
Political Factors – UK political environment is stable, but due to Brexit, it has impacted the
employment, legislations taxes etc of H&M (Adelakun, 2019). H&M is the flexible company and
is ready to face the challenges and adjust its marketing and business policies accordingly.
Economical Factors – Economies all over the world has been impacted because of the Covid-19
pandemic and due to this purchasing power of customers is assumed to low. In such situations, to
stop customers to switching to another brand H&M, it provides different schemes and discounts.
Social Factors – Consumer today is influenced by the celebrities and media to adopt luxurious
and materialistic lifestyle, H&M prefer to present more designer fashion goods according to the
current trend.
Technological Factors – H&M update innovative features on their mobile apps such as H&M
club functions which provide customers to collect reward points. Technological advancements is
done regularly so that assistance is provided to various departments of the company.
Legal Environmental – H&M has been involved in various legal disputes although it has
sufficient amount to face any such issues. But company should abide by rules and regulations of
UK. For example, it lost multi-billions money in tussle patent dispute in 2015.
Environmental Factors – Because of the increasing pressure from public and government and to
showcase the transparency of its business (Bismark and et.al., 2018). H&M have decided to