Strategic Management Case Study: H&M Analysis and Strategies

This case study analyzes the strategic management of H&M, examining its strengths, weaknesses, and market strategies. It includes an executive summary, situation analysis, and alternative mission and vision statements. The analysis incorporates Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), SWOT analysis, Competitive Profile Matrix, SPACE Matrix, BCG Matrix, and Grand Strategy evaluations. The study also explores QSPM for market penetration and product development strategies, along with recommendations and implementation challenges. The document provides a detailed assessment of H&M's strategic positioning and potential future directions, offering a comprehensive overview of the company's strategic management approach, and provides valuable insights for understanding the company's performance and strategic choices.

Running head: STRATEGIC MANAGEMENT OF H&M
SRATEGIC MANAGEMENT OF H&M
Name of the Student
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Executive summary
H&M stands for Hennes & Mauritz, which was established in 1947 by Erling Persson in
Vasteras, Sweden. The main objective or mission of the company was to provide its
customers with a wide range of products in terms of good quality and at reasonable
prices to purchase. This theory insights about the strategic plans to be made by the
organization to maintain its charm in the market and be ahead of the competitors.

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Situational analysis
H&M has always been ahead in producing fashion at reasonable prices for the
younger generation of the society. In fact, it has also succeeded in maintaining the trends
keeping cost low, and a quick movement was required to keep up in all the aspects (H&M
offers fashion and quality at the best price, 2020). As the company produces so many
products, therefore there was a lack of paying attention to all the products and its quality.
Consequently, the brand image of the company was affected, and the shares of the company
got down immensely. Therefore, there rose a call for making some strategic plans for the
company to lead the market again and be ahead of the customers.
Internal Factor Evaluation
This is a strategic management tool that is helpful for the evaluation of the strengths
and weaknesses that are major and are within the functional areas of the organization. This
helps in the identification and then evaluation of the relationship existing within these areas
(Capps III and Glissmeyer, 2012).
External Factor Evaluation
This is also a strategic management tool and helps in assessing the condition that the
business is currently in. The matrix plays a very significant role in visualizing and prioritizing
the threats and the opportunities that are externally present and effecting the business (Capps
III and Glissmeyer, 2012).
SWOT Analysis
This is a strategic tool that is used for identifying the potential strengths and
weaknesses that are internally present in the organization, and also the opportunities and

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threats present externally in the environment affecting or could affect the business. It helps in
understanding the loopholes present and then take actions accordingly (Gürel and Tat, 2017).
Competitive Profile matrix
This is a tool that helps in comparing the organization with the competitors present
and then tell the strengths and weaknesses that are relative and also helps in understanding
the external environment and competition of that particular industry where the organization is
operating.
Space Matrix
The matrix uses two dimensions internal and external, and the financial, competitive,
stability, and industry position of the business is found using this tool. This is again a
strategic tool that helps in understanding the scenario present and helps in coming out with
the alternative strategies for the organization (Yang and Wang, 2019).
BCG Matrix
This matrix is a strategic framework that helps n evaluating the strategic position of
the organization of the brand portfolio the company has and then judge its potential. It helps
in classifying the business in four categories that are based on the market shares and the rate
of growth of the industry (Mohajan, 2017).
Grand Strategies
These are sometimes called business strategies that help the organization to follow the
differentiation or focus and also helps the organization in coordinating the efforts required for
the achievement of the goals that are meant for the long run (Kassab, 2017).

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QSPM
QSPM stands for Quantitative Strategic Planning Matrix and is a high-level approach
of strategic management that helps in evaluating the strategies that are possible and
accordingly provide an analytical method for making a comparison among the alternatives
that are feasible.
Implementation of the strategies.
1. Sustainability can only be implemented if the goals defined are clear and then making
improvements that are consistent for the organization. There must be enough
sustainability in the supply chain of the organization. Finally, the resources are
allocated, and accordingly, the employees are engaged.
2. For entering a new market, it is essential that the prices are adjusted accordingly, and
the promotion of the brans is increased. Market penetration will only be possible
through maximizing the channels for distribution, as this will help in reaching out to a
number of customers.
3. Online expansion is the best way of reaching out to people nowadays, and this can be
only possible if we have a site of our own brand for which we need to register our
company to that and accordingly design a website and also make the customers aware
of using this tool and launching many email campaigns.
Challenges faced
The company may face a lot of difficulty in implementing these as there may be times
where there will be immense online traffic that may restrict users from accessing the
webpage, there is an inability to meet the desired demand by the customers in the market if

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penetration occurs very quickly. Besides, there are many social barriers that restrict the
business from adopting a sustainable strategy as there is unsustainability in the consumption
and production patterns of the customers, making it difficult for the company to identify and
implement the changes required to be and sustain the market need.

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References
Capps III, C.J. and Glissmeyer, M.D., 2012. Extending the competitive profile matrix using
internal factor evaluation and external factor evaluation matrix concepts. Journal of Applied
Business Research (JABR), 28(5), pp.1059-1062.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
H&M. 2020. H&M Offers Fashion And Quality At The Best Price. [online] Available at:
<https://www.hm.com/> [Accessed 30 March 2020].
Kassab, H.S., 2017. Grand strategies of weak states and great powers. Springer.
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
Yang, L.F. and Wang, M., 2019. Reinforcement leaning in feature space: Matrix bandit,
kernels, and regret bound. arXiv preprint arXiv:1905.10389.