H&M's Global Strategy and Foresight: Competitive Advantage Analysis

This report critically evaluates H&M's current global positioning within the fast fashion industry, considering trends and disruptive events like COVID-19. It constructs plausible five-year scenarios for H&M, assessing potential threats and opportunities. The analysis delves into sources of competitive advantage, including Porter's generic strategies and resource-based theories, and their relevance to H&M's management. Furthermore, the report examines the role of innovation and internationalization in shaping H&M's competitive advantage and strategic position, providing a comprehensive overview of the company's strategic landscape and future prospects.

Global Strategy and
Foresight London

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Question 1 - critically evaluate the current global positioning of H&M................................3
Question 2 - Sources of Competitive Advantage and its relevance to management..............5
Question 3- Firm’s strategy and strategic position.................................................................9
Question 4 - : The role of innovation and internationalisation in a firm’s Competitive
Advantage.............................................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
It is essential for management to create suitable managerial tactics that is supportable for
enhancing managerial exercises and project. As there are diverse factors that require to be
evaluate by management for creating effective management and enhancing managerial exercises
in respect to accomplish desirable targets. Global strategies of business is supportable for
innovative action plan that is efficient for effectively and suitably presenting in global field of
marketplace (Derkachenko, and Kononiuk, 2021). The following report deals with H&M
management. This management is presenting their exercises in retail field and headquartered.
Hennes and Mauritz AB is popular clothing brand that offers their goods and facilities in wider
field of market place. The headquarter of this management is established in Stockholm, Sweden
that was established in the year of 1947. H&M management was established by Erling Persson
that offers higher qualitative and standardised goods and facilities in worldwide field of market.
The following report covers the data about present global positioning of H&M and involves
several theories of competitive benefits and measure their suitability to business. The project
include management's tactics in context to managerial resources, capabilities and managerial
performance. As per to it, the suitability of innovation and internationalisation is creating and
executing H&M's strategy and competitive position have been measured in this project.
TASK
Question 1 - critically evaluate the current global positioning of H&M
a) Evaluate the trends within the ‘fast fashion’ industry and disruptive external events
(e.g. Covid-19) in general, that could be considered as key drivers for change
H&M management is popular for their higher standards and fashionable goods that is
essential for their success of the business. It have been measured that there are diverse
components and factors that might be measured as the driver for changes and it will lead to
have an impact on their presentation and operations of management. It is significant for
business to evaluate diverse trends of fast fashion sector in respect to create suitable and
effective goods that is capable to effectively meet consumer needs (Diamanti, 2021). By this,
it have been examined that there are various external events like COVID-19 that have
affected their performance and operations of fast fashion management. By the effects of
COVID-19 pandemic issues the manner of living and presenting exercises have been

effective varies. It can be relates to critical term of factors that have an impact on variations
in fast fashion sector. It have been measured that at present time, consumers of fast fashion
sector is relates to online purchasing of goods in respect to satisfy their desires of consumers.
It will led to effective manner of business in demonstrating and presenting their exercises and
effects on sales or profitability of business. It covers globalisation and creative techniques
that have played effective role in fast fashion sector. It might be termed as critical factors that
will lead to maximise the presentation of business that supports in increasing their
managerial dealings. By the help of such variations H&M management is capable to perform
effective dealing with their consumers and will influence wider term of consumers towards
management (Eimermann, 2021). As there are diverse new digital technologies and medium
that is important for effectively presenting managerial functions of fast fashion sector and it
will lead to maximise global roles of business to influence higher number of consumers
towards management.
b) Construct some plausible 5-year scenarios for H&M
H&M is one of the widest management that are presenting their managerial exercises in
wider field of marketplace. It is a popular management that are offering higher quality of goods
and facilities in respect to meet their desired of consumers. The vision of H&M is to make
suitable choices effective and influence the global sector. The 4 year case of H&M management
involves consideration of sustainable managerial tactics in respect to effectively and efficiently
evaluate sustainable managerial exercises. H&M management is arranging to evaluate creative
sections as with the procedure that is supportable for making goods more sustainable. It will lead
to have suitable positive effects on management that will help in global advancement and
betterment exercises of management. As there are several sort of goods that is provided by H&M
to created with higher quality of products that are created with high material and original design
for meeting desires of customers (Fergnani, and Chermack, 2021). In the next 4 year case for
H&M management this is termed as 40% independently certified material like organic or recycle
structure as with another creative exercises with the desires of consumers. In the next 6 years of
case for H&M management have their targets to maximise sustainability in their managerial
exercises with the consideration of creative practices with the consideration of creative exercises.
It is lead to have positive effects on global presentation and productivity of business that will
supports in accomplishing desirable targets.

c) Consider the potential impact on H&M’s business in terms of both threats and
opportunities, using the identified trends, disruptive forces, and the constructed scenarios. [
It has been identified that H&M management should involve various threats and
opportunities that will lead them to have an impact on managerial exercises in the manner that
they are presenting their managerial exercises. As there are diverse trends, factors as with the
concept of case. H&M is second fundamental fashion retailer as worldwide. It deals with the
management's rapid fashion tactics it is effective benefit over challengers who have contributed
to accomplish their terms (Flyverbom, and Garsten, 2021). H&M is managing and promoting
fierce oppositions from new and old brand such as Zara, Gap, Boohoo, and so on, which are the
challengers for most suitable area to manage and decrease the demand for H&M's goods. It also
offers multinational advantages for retailers who are reducing lower with the maximisation in
expenses of task and natural material. By maximisation of functions and innovative issues for
H&M's advantages. The success of worldwide management such as H&M rely on uninterrupted
development of natural substance and final goods. Lock downs and quarantine in the event of
other global pandemic issues in the future can be get disrupt the sections and also decline the
H&M sales and as well as their advantages.
Online shopping have opened up with new areas for fashion sector. The brand can varied
it into an effective and immense and global chances for them by using the resources that are
available to them. The online business section is by all divisions that are raising with retail sector
that can be take care of H&M. H&M is now working in excess of 60 nations and there are wider
load of new creation of managerial area that can be undiscovered by the brand, generally in
Asian and African states. By investigating such new managerial industry, the management will
effectively require to raise higher and beneficial and develop it their purchaser base. Lifestyles
and buying forces of respective are both extending as across to the globe (Gaponenko, 2022). It
develop the interest that respective have for the products that they become with more brand
image. H&M can make use of this by managing with suitable profit as effectively.
Question 2 - Sources of Competitive Advantage and its relevance to management
Competitive benefits is termed as critical and significant field of business that is effective
for efficiently conducting business exercises. It have been measured that the business are
presenting their diverse dealing with the aim of gaining competitive benefits over another rival
management. H&M is one of a famous management that offers higher quality of goods and

services in wider field of marketplace. This management is practising their dealing with high
competitive market place by which there is no essential terms for this business to create efficient
tactics by which they can gain competitive benefits over another management performance of
their exercises in similar market place (Jarzabkowski, Dowell, and Berchicci, 2021).
Competitive benefits happen when the management gets or adapt aspects of combination of
attributes that will enable them to overcome their challengers. Such aspects can integrated to
permission to normal resources such as high grade mineral or economic power or accession to
deeply prepare and skilled HR. New technologies such as robotics and information technology
are to be integrated as a piece of the products to support them in making it. Information
technology have being like clear term of managerial world that involves competitive benefits by
sub figuring challengers as to internet existence. Competitive benefits is a management's
capability that act at least one manner that will not arrange. It has been ascertained that there are
diverse tools that might be termed by management for gaining competitive benefits over another
challengers and it will increase managerial exercise. A competitive benefit is linked with the
skills to eliminate their challengers at the time of getting the consumers. In respect to it,
flexibility is an effective sections for benefits, the most popular competitive benefits are
investment that follows by the business that can include into it (Lowe, and Drummond, 2022).
The competitive benefits that deals to foster will come up with short period of time in which
consumers will not effective involve. In this manner, management should concentrates on
developing consumer benefits. As there are diverse theories that are linked to competitive
benefits that require to evaluate by H&M management for increasing and enhancing their dealing
in the field of the market place. It covers Porter's generic strategies and resource based theories
of the competitive benefits that are as follows -
Porter’s Generic Strategies
It is termed as an efficient and supportable structure in respect to identify and measure
competitive benefits of business over another challengers in the field of the market place. By this
model H&M management will be capable to create efficient plan of actions that are supporting
for getting higher term to manage and as well as maintain their managerial exercises.
Competitive tactics have an impacted by the particular relative conditions in the management. By
positioning, management can have two fundamental sections of competitive benefits that have

low value of cost and differentiation. Such sort of competitive benefits will resulted from the
capacity to adopt the modern powers which is effective as compare to the challengers. Cost leadership – It can be described as the tactics in that management is planning to
provide their goods and facilities at low price. It is crucial for drawing their tremendous
amount of consumers towards management with enhancement of exercises. The cost
leadership strategy in the business of management will concentrates on decreasing the
price to pass on the goods or facilities to their consumer with the motive to make sure
higher productivity that manages financial sections to get their resources with several
terms of the business. It also involves cost leadership when the business attempts to
manage their lower price creator or management of the business. H&M management will
have to offer their goods at low price in market place for influencing wider base of
consumers towards management and getting edge over other challengers in the business. Differentiation – It can be relates to the plan of action of strategy of the business in that it
plans to offers new and original sort of goods and facilities for effective meeting of
consumer requirements and desires (Mathiyazhagan, and et.al., 2021). The
differentiation strategy is a program in which the business concentrates on dividing their
goods and facilities from challengers. Such tactics have wider sort from full products
range by to managing their factors in the centre of goods. H&M require to evaluate
differentiation strategies that will help in accomplishment of benefits over another
challengers with the aim of increasing managerial dealings. Differentiation when the
management are interested in performing their roles as with the aspects of the purchasers.
H&M management require to provide diverse and innovative goods that is not offered by
any another management in the field of the market for gaining competitive benefits over
another rival management.
 Focus – It involves cost focus and differentiation focus strategy in that the business is
offering their goods and facilities to wider field of marketplace. The cost focus strategy is
a progression of the cost leadership strategy (Meyer, von der Gracht, and Hartmann,
2021). As there are two stand point of this strategy. The “Focus” that manages to the
business will concentrates on specific market place by sector or geographical and changes
it into the experts in passing it for another sector. The differentiation focus strategy is a
pathway of differentiation strategy. H&M management is offering their goods and

facilities to wider field of market by which it is not efficient tactics to offer their goods
and facilities.
Resource based view
It can be relates to the organisational structure that is important for identifying and
measuring diverse sort of tactics of resources of business that will help in gaining sustainable
competitive benefits. Such theories of competitive benefits was created by Barney in the year of
1991 and it is essential for offering suitable direction to business for increasing managerial
dealings. The resource based view model frames that significant resources can be heterogeneous
and such resources might not be effectively movable (Muiderman, and et.al., 2022).
Management's resources deals with all assets, capabilities, processes, characteristics, data,
knowledge and many more. It maintained the forces of the business to empower and implement
plan of actions that will promote profitability. Such sort of theory of competitive benefits is
termed as the manner of figuring out the perspective of the business and as well as creating
efficient tactics for attaining their desirable targets. The proposed resources based framework are
the cause in which resource heterogeneity are fixed sections in a sector and will enable the
business resources to be valuable, rare, ineffectively imitable and not efficiently substitutable.
Such resources will manners at the point, it will lead to take benefits of opportunities and
eliminating issues for managing competitive benefits to be attained. It has been measured that
there are diverse sort of the resources of H&M business of management that is supportable for
satisfying the requirements and desires of their consumers in effective way. Resource based
concept of competitive benefits will involves the creation to attain managerial competitive
benefits by formulating and using of the resources to provide purchasers choices in the way that
are hard to filled. It demonstrate that efficient innovations will solve not effectively by the
innovation (Neuhoff, Simeone, and Laursen, 2021). The fundamental resources of H&M
management involves their assets, skills, managerial procedure, aspects of the business,
knowledge and many more. All of such are important for identifying valuable, rare, inimitable
and as well as non substitutable goods of effective management that is H&M in respect to gain
benefits on another challenging business of management.
It has been measured that theories that are linked with competitive benefits that is
effective for might inform H&M manager in their sections to gain sustainable competitive
benefits. By it, this has been measured that there are diverse factors of H&M management that

might be termed as their competitive benefits factors in respect to increase and enhance their
managerial exercises. It will lead to help the performance and as well as productivity level of
respective management. By such sort of the theories of competitive benefits it has been measured
that the management of H&M management require to evaluate differentiation strategy that will
help in enhancing their skills and abilities to gain higher term of opportunities over another
challengers within field of area. It has been measured that the management is creating high
valuable and innovative goods that help in influencing wider amount of consumers towards
management (Panduru, Scarlat, and Gherman, 2021). Hence, by the theory of porters generic
strategy manager of the management of H&M management will be capable to get suitable term
of data for creating efficient and potential tactics and as well as plan of action for increasing and
enhancing managerial dealings. By the help of differentiation strategy the management will be
capable to effectively have an impact on larger field of consumers towards management and as
well as motivate them to buy innovative and diverse goods that are not accessible to another
challengers in the business. By this theory of resource based views it has been measured that the
resources of business plays essential and significant role in respect to enhance managerial
dealing and as well as gain competitive benefits. It has been identified that HR of H&M
management is one of the critical resources that help in increasing and enhancing their
managerial exercises. It will lead to create higher quality of goods and facilities for influencing
wider amount of consumers towards business as with the aim of accomplishing desirable targets.
Human resource of respective management that is H&M is effectively skilled and potential to
efficiently operated managerial function to increase their competitive benefits in the field of the
market place.
Question 3- Firm’s strategy and strategic position
It is essential for H&M management to create efficient and effective managerial tactics
that is supportable for increasing and managing the dealings of the management. It will lead to
have positive effects on global managerial exercises that will support in influencing wider
amount of consumers towards management (Pherson, Mort Ranta, and Cannon, 2021).
Managerial tactics can be relates to the action plan that is evaluated by business to enhance their
dealings that will support in accomplishing their desirable targets. H&M managerial tactics
require to evaluate efficient marketing dealings that is significant to evaluate digital and creative
techniques to effectively offer source of data to the consumers. It has been identified that by

exploiting inner resources and skills and meeting the demands of the values of worldwide
challenges, management will develop values and standards for their consumers. As there are
diverse critical resources of H&M management that might be relates to their fundamental
strength in respect to enhance managerial dealings and as well as improving managerial dealings
as well. It is estimated that by managing products presentation and aspects and their credits for
that the consumer will pay (Pouliakas, 2021). Such certain sections of resources and capabilities
that provide interesting advantages to their business that are views as core competencies as
effectively. H&M have wider term of scope of several sections that will contribute to their
products like clothes, beauty care goods, footwear accessories and as well as ornament for
getting wider term of scope of consumers. H&M manages their products that covers the variety
of canvas model, holders and many more. It might be consider as one of an effective tactic that is
supportable for influencing wider amount of consumers towards business and increase their
managerial dealings. H&M goods are of high quality that is essential for meeting consumer
requirements and desires. Core competencies are resources and skills that fills their suitability in
the management with higher term of challenges. It involves core competencies that deals with
the management effectively and presents their character. H&M have higher and diversified
existence in demographical and geographical section as across to the globe. H&M have outlets in
more than 60 nations as across to 6 continents. The management of H&M have enlarged their
services in new years in effective managerial sectors such as Asia and and as well as Africa.
Effective and global existence of empowers the management to limit their managerial issues.
Core competencies will raise after some time by the development of collection and managing
how to transfer several sort of resources and skills (Pratono, 2021). By evaluating the
mechanical sections in the present era of the online platforms that have become of an important
path of demonstrating for the brands. H&M have measured that how to develop an effective
existence that will spread as across to several sections. It generally help with online mode as
same to another stores that deals for the brand. It might be evaluated as efficient managerial
tactics of the H&M management to influence wider term of clients and as well as consumers
towards their management as with the aim of maximising their sales. H&M management have
potential and skilled human resource that is able for creating efficient plan of actions and tactics
and it will lead to the growth and advancement of the management.

Operation resources and such restrictions are concentrates on presenting standardised practices
suitably with wider base of resources. In this manner, such skills are linked with profitability
collecting and facilitated components. In the way of effective perspective, productivity of
sections will present when the business will maintain the managerial resources and skills of all
more efficient terms. In the manner of monetary stand point, efficient resources are followed at
each risk division, selecting an effective venture with the aim of getting competitive advantages.
Operations capacity is the skills and data that authorise a business to be productive and adaptable
and create or develop the use of resources as effectively that might effectively be anticipated. As
it is essential for the business to evaluate financial dealing into the manner with the vision of
presenting managerial exercises and task in suitable way (Raven, and Stripple, 2021). It will
lead to enhance managerial presentation. Operations skills is certainly based on procedure that
are to be benchmarked and systematized. For instance, H&M management have to follow total
quality management and multinational guidelines business to increase the quality and
effectiveness. This management will concentrates on offering higher quality and valuable goods
and facilities to their consumers for effectively meeting consumers desires and maximising
managerial exercises as effectively and efficiently. Generally, there are diverse sort of
management that have implemented managerial procedure for redesigning to updating their
organisational structure and working procedure to use information innovation and as well as
creation to enhance profitability. It has been supervised that real capital power is a dealing of the
business explicitness with actual capital resources which will represent with furthermore
applications in which the business utilise it in the development of their source of factor. It covers
the productivity with that it can be done with suitably and managing their price, frequently
developing it more worth. The management with highly raised section of capital force will
depends on their higher term of resources and effective term of opportunities with varying aspect
in capital use. By this, it has been identified that the H&M management have effective resources
and skills for presenting their managerial dealings in suitable and effective way in respect to
maintain their practices (Seif Zadeh, and et.al., 2021). By the consideration of the digital media
and innovation tactics, the respective management will be capable to effectively present their
managerial dealings and will be capable to have an impact on wider amount of consumers
towards management. As there are diverse social media and as well as digital media tools that

might be termed for H&M business of management to offer the source of data of their goods and
facilities to their consumers and influence them to buy goods of respective management.
Question 4 - : The role of innovation and internationalisation in a firm’s Competitive Advantage
Innovation and internationalisation is termed as effective section in respect to create and
as well as execute H&M strategies as with the aim of gaining competitive position. It is critical
for business to evaluate innovation and internationalisation with the purpose of increasing and
enhancing managerial dealings in suitable way (Slaughter, 2021). The innovation is the
procedure that are based on the managerial capacity to start present base that are available within
knowledge. It will depends on the managerial skills to hold knowledge from outside sources by
several terms of plan of actions, partnerships or the mandatory of legal document. It involves
trade strategies to increase the innovative limit of small and medium size business by enlarging
their admittance to resources such as relevant and high quality of work. It has been measured that
the managerial capacity to spread as across boundaries will have turned into deciding their
factors in their competitiveness. Their capacity to develop and maintain new goods, facilities or
innovative procedure will provide competitive benefits that will help with guaranteeing their
profitability from hypothesis and framed with outside field. Internationalization provide the
opportunities to develop their resources by managing new sectors. Such purchasing will manages
internal financial resources. By admitting the outer financing it will performed as per to the trade
exercises, offering supportable admittance to new management of potential financial sections
that are capable to share innovation actions. It also enables admittance to the fundamental source
of data as far as present and potential consumers assumptions. Much research thinks about
consumers as the basic shift of product innovation (Smith, 2021). It has been measured that
innovation and internationalisation will efficient have positive impact on implementation of
management that will ready to draw in the maximisation of consumers towards management.
Innovation is primary to maintain and emerges economical management in which the data will
based on resources that will drive the key factor of innovation as same to programs, data sets,
research and enhancement, managerial expression capacities and authoritative capital as they
maintain their effective capital as same to structure, design. The utilization of information and
suitable technology are developing with new applications that raise on regular basis. As it is
essential for H&M management to evaluate innovation for increasing and maximising
managerial dealings in suitable and relevant way. The innovation procedure in the management