Strategic Management in H&M | Report
Added on 2020-02-03
11 Pages2928 Words193 Views
Strategicmanagement
Table of ContentsINTRODUCTION...........................................................................................................................1Internal and external analysis of the firm....................................................................................1CONCLUSION ...............................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONPresent report is based on H&M (Hennes & Mauritz) a fashion enterprise. Ananalysis is done of its business environment ans study has been done on it competitors.The strategy adopted by the company to undertake business operation to fulfilobjectives are described under this. All the relevant information is given in report likemarket share of the company and current and future trends are also discussed underthis. Features of the company are described on the basis of demographicsegmentation(Chandes and Paché, 2010).Internal and external analysis of the firmInternal analysis is a process of identifying an evaluating the characteristics andcompetencies of the enterprise including its resources, capabilities and its core competencies.H&M can do the internal analysis in order to know what are its main competencies or qualities.Internal analysis will help the firm to know the area where improvements are needed.Following analysis techniques are available in order to do the internal analysis:SWOT analysis Value chain analysis Stakeholders analysisSWOT analysis: SWOT analysis is a internal tool analysis which helps the enterprise inidentifying its strengths, weakness, opportunities, threats. This analysis technique helps theenterprise in using its strengths to capture greater market share and try to minimize or remove itsweakness(CHUANG and Liao,2010). In addition, this technique helps the enterprise inidentifying the opportunities prevail in the market and helps the enterprise in knowing the threatsfor the company and take action in order to minimise the effect of threat.The main strengths of H&M are as follows:This is one of the largest clothing retailer.This offers quality and fashionable and trendy clothes at very affordable prices. One cansay designer clothes at an departmental store.There are almost 2300 stores of this company in 45 countries approx Delivery time is very low.They have been associated with designers and big celebrities.This company present lot of flexibility control to the customers.1
Weaknesses of this company are as follows: Their target customers get affected by the changes take place in the economic conditions.Buying the stock in large quantities increase the cost of storage.All the different type of machines used to make different type of clothes needs a lot ofmaintenance and lot of funds are required to maintain the equipments.Opportunities of H&M includes the following:Emerging economies support H&M's market or expansion plans.Online shopping are gaining importance day by day.H&M are in a well position to provide services to the niche market.Threats of H&M are following:Weak competitive position because number of branded increase.Many of the business line of this enterprise fails to fulfil the specific demand of thecustomers. Value chain analysis: Value chain analysis is very important to see or study how acompany structure is created. Value chain is a combination of two activities including:Primary activities: This includes marketing, sales, operations and logistics.Support activities: Human resource management, technology and infrastructure comesunder this.Basically it is a process of creating final product from the raw material. This include addingvalue to raw material and than deliver it to the final customers(Cinquini and Tenucci, 2010). Ithelps the firms in knowing the main activities which added value to the product.This method of analysis helps the firms in knowing the main activities and do thenecessary improvements in the process which are important. Stakeholders analysis: Stakeholders analysis is a process of analysing the effect ofdecision taken by the enterprise. This information is used to analyse how the interests ofstakeholders should be given attention or importance by the enterprise. This is a technique ofinternal analysis this helps the enterprise in learning attitudes and behaviours about thestakeholders. By doing this analysis H&M can take that decisions that will result in satisfying theneeds of the stakeholders.These all the techniques of doing internal analysis of the firm. Other than this the importantinternal factors which affect the business is its customers. Customers plays an important role it is2
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