H&M Business Performance Analysis: Increasing Market Competition

This report investigates the impact of increasing market competition, driven by the integration of social media channels, on business performance, focusing on a case study of H&M. It highlights the increasing competition faced by H&M due to social media integration, affecting its operational ability and production. The rationale emphasizes the importance of understanding this issue for modern businesses. The research aims to explore market competition and social media challenges, assess the impact on business performance, articulate issues faced by H&M, and identify mitigation strategies. The literature review covers market competition, social media channels, and their impact on business performance. The research methodology employs a quantitative approach, using questionnaires distributed to 40 H&M employees, and thematic analysis to derive findings. Key findings reveal awareness of social media's impact on market competition and highlight issues such as decreasing sales and challenges in physical stores. Recommendations include providing training, building brand awareness, enhancing customer interaction, and developing suitable business strategies to mitigate the negative impacts of competition.

Resaerch proposal
and report

Table of Contents
Title of the Project...........................................................................................................................1
Introduction......................................................................................................................................1
Overview of the Research......................................................................................................1
Rationale of the Research.......................................................................................................1
Research Aim, Objectives and Questions..............................................................................2
Literature Review.............................................................................................................................2
Research Methodology....................................................................................................................4
Findings of the Research..................................................................................................................4
Conclusion and Recommendation.................................................................................................13
Conclusion............................................................................................................................13
Recommendation..................................................................................................................14
References......................................................................................................................................15

Title of the Project
To investigate the impact of increasing market competition with the integration of social
media channels over the business performance. A study on H&M.
Introduction
Summary of the Research
This report aim to analysing the consequence of developing the market competition with the
integration of social median channels over the performance of business, therefore, increasing
market competition is a major issue for the firm as it has through impact over the transaction and
progression of the business (Allen and Ochs, 2019). Social media mainly affects the business
positively and influences the opportunity for the audiences to find the business over social media
tools. It mainly aids to reach the targeted people; stay engaged with them and responds to their
queries instantly. However, businesses in the modern era are concern over integrating social
media marketing as it helps the firms to help the operations in better way and increasing the rush
of customers, thus, this mainly increases the competition within market. In this present study
analysis has been based on Hennes & Mauritz, it is a Swedish multinational clothing retail
business which is widely famed for its fast fashion clothing for men, women, teenagers and
children. From the past few decades, the fashion retailer the business has been slowing down its
bodily growth tool. The business has closed around 140 stores in the year of 2018 and after that
poor outcome in 2017, and revised down its plan for stores openings last year through around
175 globally to 130. With the increasing integration of social media sites the company is facing
high market competition which affects its functional ability and production (Antoine,
Allemanand Molenaar, 2019)
Rationale of the Research
The major reason of executing analysis over the aspect of evaluating the impact of increasing
market competition with the integration of social media channels over the performance of
business, is that, it is the most concerned issue in today’s business era as businesses are facing
increasing competition with the integration of social media technologies, therefore, the study is
imperative in increasing significant knowledge and idea in context to the selected study area
(Bray and Woodman, 2019). In addition to this, the another concern of executing the study is the
personal involvement of investigator as the investigator determine to explore own knowledge
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and idea with context to selected study area and also seeking for developing individual as well as
professional skills which aids in attaining expansion in upcoming position. The study mainly
provides grounds to the businesses to analysing the ways to reducing the competition and
increasing the professional ability of the business.
Research Aim, Objectives and Questions
Research Aim
To investigate the impact of increasing market competition with the integration of social
media channels over the performance of business. A study on H&M.
Research Objectives
 To enhance understanding in relation to the aspect of market competition and the
effective social media challenges implementing by the business.
 To access the impact of high market competition over the performance of business.
 To articulate the issues faces by H&M related to increasing market competition.
 To identify the ways that can be opt by H&M to mitigating the issue of increasing
competition due to the emergence of social media marketing.
Literature Review
Review of literature is the most important feature of the study, which is effective in developing
detailed theoretical framework to aid the study in right manner. In addition to this, the literature
review is mainly relay over executing via secondary sources like books, journals, articles and so
on (Dong and Wu, 2015).
The concept of market competition and the effective social media channels implementing by
the business.
According to the view of Hater and James (2021), marketing competition defined as the rivalry
among the business selling related goods and services with main subjective of achieve income,
profits and growth market share. Therefore, the competition in market businesses to develop
sales production through analysing the four aspects of the marketing mix and defined to as the
four P’s. Thus, market competition is a major challenge for the business as organisations are
facing the issue (Brownlee, 2019). However, in the modern business era, due to high
competition in the market, businesses re concern over implementing effective social media tools
like Facebook, Twitter, Instagram, Google+, Pinterest to increasing the operations within market
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as the social media tools are effective in developing the operational ability via developing the
reach of the business within wider market. However, these are the suitable social media tools that
are effectively being implementing by the businesses to promoting the brand and its offerings.
https://www.investopedia.com/terms/p/perfectcompetition.asp
The impact of high market competition over the performance of business.
According to the view of Grimsley 2021, competition can be defined as perfect and imperfect
competition. Therefore, the aspect of perfect competition mainly starts when there are assorted
organisations and no business has market power. On the other hand, imperfect competition,
where, there are less competition and each organisation has the ability to differentiate its items
and services in a way other than through price. However, businesses in the modern era are
mainly facing perfect competition where large number of rivals is available in the market. Thus,
market competition has make a negative impact of operations and series of firms as it affects the
operational ability, sales, revenue, profitability, customers engagement and so on, that are
effectively be facing by the business. Furthermore, businesses are widely concern over managing
the competition at market place to increasing the professional ability of the business (ÇİVİCİ,
2019).
The issues faces by H&M related to increasing market competition.
According to the view of Charlton (2020), H&M is a famous and leading fashion retail which
has its wider brand image in the market place. Therefore, from the past few decades, the retailer
of fashion such as H&M has looking slow down to expansion tools. The chain of retail closed
around 140 stores in the year of 2018 after poor outcome in the year if 2017 and altered down its
plans for the stores opened last year through 175 globally to 130. H&M is still constantly to
explore its bodily existence but has began to change away through more than a decade of regular
growth. The warning through rival merchandising, both the offline and online is partly liable for
H&M’s alteration strategy (Farrell and Suiter, 2019) The major rival of H&M, zara has enjoyed
an increase in sales and the business H&M has faces a stiff rivalry through online only
competition like ASOS and Boohoo. In addition to this, business has facing a-lot issue related
with increasing market competition which are associated with decreasing sales, decreasing
physical stores, less customers attraction and so on, that are effective being faces by the business
that affects the operational ability of business.
https://www.theukdomain.uk/whats-the-problem-with-hms-online-strategy/
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Research Methodology
Research methodology defined as the suitable plan and process which is mainly
implemented by the investigators to select, analyse and interpret the suitable information.
Therefore, this is the most suitable aspect for assisting the entire investigation in right manner.
The suitable selection of methodologies for this study is associated as under:
Choice of research: Research choice is relay over two prospects i.e. quantitative research
qualitative methodology. In this present study, analysis has been encompasses over quantitative
aspect, as it is the most suitable tool to execute detailed evaluation to aid the study in right
manner. Thus, here information is mainly relay over statistical and mathematical aspects (Liebler
and McConnell, 2020). In addition to this, the quantitative analysis is effective in providing
actual facts and figures which are relay over the area of analysing the impact of increasing
market competition with the integration of social media channels over the performance of
business.
Data Collection Tool: The accumulation of collection is broadly shift over two sources like
secondary and primary source of information. With this case of this existing investigation work,
primary and secondary both the tools are utilize by the investigator as the primary study is
mainly being executing with the support of disposal form and sources of secondary like journals,
books, articles and effective in conducting literature review (Yang and et. al., 2016).
Sampling: This is the most suitable tool which helps in selecting the suitable people to execute
the work in right manner. Therefore, sampling mainly replicates from the original population.
For the suitable execution of the present study, random sampling from probabilistic formulation
has been implementing by the investigator as it is the most appropriate approach where
individual are picked without making any kind of biasness. The suitable sample size for this
analysis is around 40 employees of H&M, therefore, employees of more liable in providing
suitable information about the aspect of increasing market competition (Machiavello, 2021)
Findings of the Research
This area of inquiry is shift over analysing the information accumulated via the researcher. With
context to researcher and their investigation of private based on work on other prospect of study
the impact of increasing market competition with the integration of social media channels over
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the performance of business, thematic analysis approach has been implementing by the
researcher to generate suitable results as here themes are generated over the questions of
questionnaire (Ting and Gray, 2019).
Questionnaire
Q1) Are you aware about the social media tools that are effective in context to business?
Yes
No
Q2) What do you think, the integration of social media tools are increasing competition within
market?
Yes
No
Q3) As per your view, which social media tools are implementing by H&M to increasing the
operation of the business within market place?
Facebook
Twitter
Pinterest
Google+
Q4) According to you, what is the effectiveness of social media channels that are implementing
by the business?
Measuring ROI
Getting Followers
Increasing audience engagement
Developing the market competition
Q5) As per your perspective, what is the impact of high market competition over the
performance of H&M?
Positive
Negative
Neutral
Q6) What do you think, are the issues faces by H&M related to increasing market competition?
Increasing market competition
Reducing sales and revenue
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Change in taxation policy
Connection with expansion into new market
Q7) From your view, what are the ways that can be opt by H&M to mitigating the issue of
increasing competition due to the emergence of social media marketing?
Providing training
Building brand awareness
Increasing personal interaction with customers
Developing suitable business strategy
Q8) Provide recommendation to H&M to reducing the market competition and increasing the
operations of the business.
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Thematic Analysis
Theme 1) People are aware about the social media tools that are effective in context to business.
Q1) Are you aware about the social media tools that are effective in context to
business?
Frequency
Yes 39
No 1
Interpretation: With the current study, it has been analysis has been executing among 40
associate and out of that, 39 individuals said that, they are aware about the social media tools that
are effective in context to business. Therefore, an individual is not in concern with the same as
the individual is not having idea about the same.
Theme 2) The integration of social media tools are increasing competition within market.
Q2) What do you think, the integration of social media tools are increasing
competition within market?
Frequency
Yes 38
No 2
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Interpretation: Accordant to detailed investigation of the study, it has been interpreted that, 38
out of 40 person are said that the integration of social media tools are increasing the competition
within market as they think that, social media is an impressive tool to enlarge the firms reach and
remaining individual are not in concern with the similar as they do not consider that
interpersonal media cause competition.
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Theme 3) Social media tools are implementing by H&M to increasing the operation of the
business within market place.
Q3) As per your view, which social media tools are implementing by H&M to
increasing the operation of the business within market place?
Frequency
Facebook 10
Twitter 10
Pinterest 10
Google+ 10
Interpretation: From the evaluation of the survey report, it has been analysed that, there are
assorted social media tools like Facebook, Twitter, Pintrerest and Google+ that are implementing
by H&M to increasing the operations of business within market place, thus, these tools are
effective in promoting the brand and its offerings.
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Theme 4) The effectiveness of social media channels that are implementing by the business.
Q4) According to you, what is the effectiveness of social media channels that are
implementing by the business?
Frequency
Measuring ROI 8
Getting Followers 7
Increasing audience engagement 10
Developing the market competition 15
Interpretation: As per the detailed analysis of the study, it has been interpreted that, there are
assorted effectiveness of social media challenges that are implementing by the business. 8 out of
40 people are in concern with measuring ROI, 7 people are go with getting followers, 10 people
are select the option of increasing audience engagement and remaining people are go with
developing the market competition.
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