Strategic Issues and Solutions for H&M

UNDERGRADUATE
MAJOR PROJECT 2

Table of Contents
MAIN BODY...................................................................................................................................3
Q1. Strategic Issues......................................................................................................................3
Q2. Three Challenges facing the company..................................................................................4
Q3. Three solutions for addressing the challenges......................................................................5
Q4. Practical Implementation of one solution.............................................................................7

Strategic Issues
Po
int
Strategic Issues Evidence (financial, report
news etc.)
Model
(s)/
Theor
y(ies)
1, Change in the shopping trends is
one of the major issue for H&M.
The shoppers today prefer online
shopping over the traditional
shopping methods of brick and
mortar. In this context the H&M
company has not been adept
where they have failed to match
pace with the quickly shaping
online markets. The market
development strategy of the
company did not give adequate
support to this online industry
thus leading to a major strategic
challenge for the company.
GradesFixer. 2019. H&M:
Challenges Adapting to New
Business Trends., viewed 1
February 2020,
<https://gradesfixer.com/free-
essay-examples/hm-challenges-
adapting-to-new-business-
trends/>
PESTLE
Analysis
tool
2, Inadequate leadership in the
H&M Company was a prominent
cause in its decline where the
members failed to foresee how
the market is evolving whether it
was the shift in fashion
preferences or the shift in pricing
culture of the fashion industry.
They were slow to identify the
causes behind the decreasing
sales and this has emerged as a
major issue in strategic planning.
H&M is caught in a 'vicious
cycle' of discounting, and now
it's found itself with a mountain
of unsold clothes - here's how it
got there. 2018. [ONLINE]
Available
through :
<https://www.businessinsider.in/
hm-is-caught-in-a-vicious-cycle-
of-discounting-and-now-its-
found-itself-with-a-mountain-of-
unsold-clothes-heres-how-it-got-
there/articleshow/
63586939.cms>
Situationa
l
Leadershi
p,
PESTLE
Analysis
3, The flawed expansion strategy
of the company was another issue
that has contributed in the
What Went Wrong with H&M?
2018. [ONLINE] Accessed
through:<https://omnilytics.co/bl
McKinsey
Growth
Pyramid,