H&M's Strategic Options and Business Linkage Analysis - BMA6104

This presentation analyzes the organizational strategy of H&M, a Swedish clothing multinational corporation. It begins with an introduction to organizational strategy and then delves into H&M's strategic positioning using Porter's Five Forces model. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The presentation then explores future strategies using the Ansoff matrix, focusing on market penetration. Finally, it suggests potential strategic options for linking with other businesses, specifically Zara and Nike, highlighting the benefits of collaboration and market expansion. The conclusion emphasizes the importance of internal and external analysis before modifying organizational strategies and the value of market diversification for growth.

Organizational strategy
of H&M

Introduction
•Introduction
•Strategic positioning
•SWOT ANALYSIS
•.Future strategies
•Ans off matrix
•Possible future strategic options for linking with two other businesses
•Conclusion
•Reference

Introduction
Organisational strategy refers to the activities and policies adopting by the
management team in order to perform long-term goals in an effective
manner. It is very essential for a business entity to modify their
organisational strategies on a regular basis as per the market need and
requirement. In the present report, H&M is chosen as the base organization
which is a Swedish clothing multinational corporations deals in clothing.

Strategic positioning
Porter’s five force model: It is tool used by organizations in order to
identify the current market position of the company. This model includes
five elements which are going to be discussed as follows:

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Threat of new entrants: It has been analyzed that market of UK is not
saturated. Furthermore, it is said that are entry barriers are not available in
distribution as the capital is required to open a store is quite low. low
capital required to open a new store. Along with this, margin in fashion
store are quite high which attracts large number of customers towards
them. Therefore threat of new entrants are high.

SWOT ANALYSIS
Swot: It is a tool used by management team in order to identify their internal
strength and weakness along with the opportunities and threats available at
the marketplace. In relation to H&M SWOT analysis of the organization are
going to be discussed as follows:
Strength: One of the biggest strength of H&M is that the brand image of the
company is quite high which attract large number of people towards their
organization.

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Weakness: One of the major weakness of H&M is that company do not have
effective management skills as they buy large number of stocks which stuck the
huge amount of funds there. At last because of change in fashion they need to
sale those products in lower cost.
H&M invest large amount of capital in order to buy machinery for producing
high quality products and services which reduces the overall profitability.

Future strategies
Ansoff matrix: It is a strategic planning tool used by management team of the
company which provides framework in order to assist marketers, executives as
well as senior managers, in order to adopt future growth strategies. In relation to
H&M, management team of the company make use of Ansoff matrix in order to
identify the best and most suitable growth strategy for them.

Ansoffmatrix
Market penetration: It refers to a strategy where managers of the company
sale their products and services at the existing marketplace with the help of
adding some innovations to the offerings. This will help the company in
order to increase their customer base within the current market place. In
reference to H&M management team of the company introduce some new
features to their current offerings and motivate their customers to buy them

Possible future strategic options for linking with two
other businesses
H&M linked with Zara
Zara and H&M both deals in similar sector which help the management
team of H&M in order to expand their business functions with them. Both
the organization can coordinate with each other and can easily bring
something new and innovative which help both the organization in a positive
manner to grab large number of market share. With the assistance of this,
both Zara and H&M can maintain their sustainability and grow at the
competitive marketplace in an effective manner.

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H&M association with NIKE
In relation to Nike, it has been said that company mainly deals in designing,
manufacturing, development as well as worldwide sales of footwear,
equipment, apparel, accessories and many more. With the help of
collaboration of both of the organization company can effectively grow at
the marketplace. Along with the collaboration H&M can involve in the
production of footwear which help them in expanding their product line
which assist them in grabbing new market share at competitive market.

Conclusion
With the help of discussion made in power point presentation, it has been
concluded that for a business entity it is very essential for examining their
external as well as internal condition before modifying their organizational
strategies and policies. Along with this, it has also been identified that
market diversification can be one of the beneficial method adopted by
management team in order to grab growth opportunities at the competitive
marketplace.