H&M Corporate Strategy: Analyzing Strategic Issues and Capabilities

This report provides a comprehensive review of H&M's corporate strategy, focusing on key strategic issues identified through PESTLE and Porter's Five Forces analyses. It assesses H&M's strategic capabilities, unique resources, and their links to competitive advantage within the retail clothing industry. The report evaluates the suitability, acceptability, and feasibility of H&M's current strategies, particularly concerning supplier relationships and environmental impact. Furthermore, it suggests improvements to H&M's strategy, including in-house manufacturing, enhanced marketing approaches, and targeting higher-end customers with customized clothing lines. The analysis aims to provide insights into H&M's strategic positioning and potential pathways for future growth and sustainability.

Coursework Report Review: Worksheet.
Organisatio
n:
Hennes and Mauritz
Q1. Strategic Issues.
Issue 1:
(PESTLE)
Technological & Socio – Culture - Increasing online
competitors
Issue 2:
(5 Forces)
Suppliers - Long lead time of outsourcing and Quality issues
Issue 3:
(Advantage)
Quality with value - Balancing low price strategy with fast
fashion strategy
Q2. Strategic Capability & Advantage.
Industry? Retail clothing industry
CSFs?
Inexpensive and fashionable clothing brand with quality products
Unique
Resources
(what do
they have?)
Strong financial position; operating under its own brand has its own
designs and contract with designers creating customised collections for
H&M and selling them under its buying departments.
Unique
Capabilities
(what can
they do?)
Can expand in the retail sector growing its brand internationally with
product and market development.
Links to
Advantage.
(map to
CSFs?)
Make a varied and diversified reach of customers providing a variety of
fashionable option at an affordable pricing with quality; creating
opportunities in the new market.

Q3. Evaluation & Improvement.
Which Porter
Generic?
Suppliers in terms of outsourcing are to be evaluated for
effectively improving quality of the products with reducing the
lead time taken. This can be improved by adopting in house
production of clothes.
Evaluation –
Suitable?
(to the
environment)
H&M is using eco-friendly approaches to manufacture its
products and utilising the resources efficiently for reducing
wastage and effective use of available sources of energy.
Evaluation –
Acceptable?
(to key
stakeholders)
Making the employees feel secure and improving their skill set
through training, motivation etc. Influencing customers with online
channels and attractive stores availing the product at affordable
pricing. Effectively managing the needs and demands of internal
stakeholders.
Evaluation –
Feasible?
(is it possible?)
To collaborate with the local suppliers and prominent fashion
designers and local competitors. Analysing employee turnover,
customer service and profit and sale margin of the H&M.
How to Improve
the Strategy?
(Ideas?)
Through proper planning and adopting various marketing
approaches and tools. The strategies can be judged by way of
analysing the competitors and making future forecast and
predetermining the goals and objectives of the plan made.
 Applying various promotional tools
 In-house manufacturing
 Targeting high end or upper class customers with
customised clothing brands.