H&M Strategy: Analyzing Strategic Positioning and Future Business

This report provides a comprehensive analysis of H&M's organizational strategy, focusing on its strategic positioning and options for business growth within the retail sector. It examines both external factors such as political, economic, social, technological, environmental, and legal influences, and internal factors including strengths, weaknesses, opportunities, and threats. The report discusses strategic options for H&M, including decreasing dependency on the European market, focusing on quantity product for its fast fashion model, and future strategic options like investing in ethical attires and interior designing clothes. The analysis concludes that strategic planning plays a vital role in expanding business, increasing market share, and supporting the overall growth of H&M, while also acknowledging the impact of external and internal factors on the firm's strategies and financial performance. Desklib provides a platform for students to access similar solved assignments and past papers for academic support.

Organisation Strategy

TABLE OF CONTENT
 INTRODUCTION
 1. STRATEGIC POSITIONING
 2. STRATEGIC OPTION FOR H&M
 3. FUTURE STRATEGIC OPTION WITH OTHER
TWO BUSINESS
 CONCLUSION
 REFRENCES

INTRODUCTION
 Organisation strategy refers to set of activities
for particular target which can help in increase
growth of firm for changing Business.
 Hennes & Mauritz AB (H&M) works in retail
sector and well known company in United
Kingdom.
 It uses both internal as well as external to
analyses situation of firm and according to that
strategy is setup

1. STRATEGIC POSITIONING
 External factor
 External factor helps firm in analysing situation
that are generated from political, economical etc.
on organisation.
 H&M faces various types of external drivers and
it impact on growth of firm positively as well as
negatively.

CONTINUE
 Political
1. Britain is political stability fluctuates after exit from European Union and it
effected various industry in country.
2. Trade tariff rises which increases cost of raw material that H&M exported
from different countries in Europe which affected on organisation strategy to
provide goods & product at low prices.
 Economical
1. Britain one of the 5th largest economies in world but BREXIT and COID
break bone of its industry as well as of growth.

CONTINUE
 Social
1. British citizens do not like same types of product as well as services in life
and make quick changes so that they remain update with latest fashion.
2. H&M provides goods as well as services according to change in taste and
trend of customer and hence this strategy help in increasing profit share in
changing business.
 Technological
1. Britain Technology is highly advance in world which helps different firm in
expanding business.

CONTINE
 Environmental
1. Organisation believes in sustainable
development of business and hence bans plastic
polythene in firm which increase its good-will in
front of customers as well as other stakeholders.
 Legal
1. H&M implement all legal changes that
government introduce which protect
employees as well as create friendly and
diverse culture in organisation.

CONTINUE
 Internal Factor
 There are number of internal factor influence H&M business in United King such as
customer’s behaviour, employees mind set, economical condition etc.
 Strength
1. H&M uses fast fashion model strategy to attract customers and increase market share in
changing business and hence customer able to purchases able to latest outfit from sits stores.
 Weakness
1. Dependency on others for manufacturing its product can impact on firm’s business
which can help in firm’s growth.

CONTINUE
 Opportunities
1. Organisation has to follow on providing range of product which can support one
stop shopping habit of customers.
 Threat
1. Recession is continuously in United Kingdom increase which
decrease purchasing power of customer and hence failing H&M
strategy to expand business and increase profit share in United
Kingdom.

2. STRATEGIC OPTION FOR H&M
 There are number of strategise which organisation can adopt in expanding
business in different part of United Kingdom.
1. Organisation has to focus on decreasing dependency on European market and take
support from Asian market which can provide raw market at cheap price and
hence firm competitive price strategy can be successful in United Kingdom.
2. Firm focuses on providing quantity product rather than quantity for its fast
fashion model. Organisation can adopt this model which help in influencing large
number of customer and hence able to increase market share in time of
globalization.

3. FUTURE STRATEGIC OPTION WITH OTHER
TWO BUSINESS
 H&M can invest in ethical attires which are made from organic material as large
number of people shifted their mind towards sustainable business and can
influence customers of country. Natural dies do not harm environment and hence
can invest in its farming and it support quality product.
 Firm can invest in interior designing clothes or material that are required by
designers and hence expand business in different part of globe which can increase
its market share in time of Globalization.

CONCLUSION
 It can be analyse from report that organisation plays important role in
expanding business and increase market share and hence support
growth of firm. H&M .
 There are multiple external factor which can impact on growth of firm
such as economical policies changes in country as describes in report
for example increase custom duties on UK-Europe border.
 Internal extern also affect expanding business such as change in taste
and trend of customer can increase financial burden on firm for
providing latest fashion.