Developing a Plan for Growth of H&M
Developing a Plan for Growth of H&M
Abstract:
The Hennes & Mauritz which is generally known as H&M is a Sweden company that engaged in retailing as well as designing of fashion accessories and apparels. The H&M on the other hand offers a wide range of cosmetics, apparel, accessories and footwear for children plus teenagers as well men and women. The H&M mainly operates within North America, Asia and Europe has a existence more than 38 countries. The headquartered of H&M is in Stockholm, Sweden along with employs range is approximately 87,000 basis on full-time employment. Given study paying attention to the strategic management of the H&M. The most important problem for research was to create an in-depth analysis of H&M marketing strategy and procedure to implement it. Moreover, the main method for research is a qualitative in order to analyzing H&M data as well as annual reports and able to formulating interviews by means of H&M manager as well as customers and staffs in H&M shop. Additionally, the research starts through general introduction and then some background information of H&M. In theoretical part, the description of process plus its challenges and benefit that faced in strategic management. Then in practical part, there is an exhaustive analysis on H&M weakness, strengths, threats and opportunities with the help of SWOT Analysis. At the end some important recommendations made in favor of H&M that help to improve developments in addition to support a glowing example used for various companies.
Introduction:
The main purpose of given study is to identify as well as assess the opportunities surrounded by the worldwide fast fashion business which is confidential as very powerful and proposed strategies that able to lead H&M on the way to gain a sustainable spirited advantage within market. Moreover, the core unit of business strategy is to generate high proceeds for clothing of kids plus men and women, H&M be supposed to enter innovative market segments in addition to introduces new products that able to compete aligned with its competitors. Furthermore, H&M is a big international organization though there are markets where H&M able to has weak or zero occurrence. Additionally, Andersson (2006) says that the H&M should reassess activities or processes that chase on behalf of improving their efficiency going on business recitals. H&M known to be in international market and there are numerous other strategies on the way to choose as of like comprehensive as well as transnational and multi-domestic or international strategies. Because of H&M business status in addition to appealing strategy like H&M branding that is becoming identified on behalf of their international consumer. In view of the fact that, fashion has overrunning people live style product with the intention of has been selected on the way to go international market of mode cosmetics like denims plus clothes and many other beauty cosmetics. On the other hand, the given study provides H&M branding strategy meant for the clothing corporation and well-known brand name of clothing-H&M and fashion (Andersson , 2006).
Company Background:
The H&M is originally known as Hennes & Mauritz and is Swedish clothing corporation that is known in favor of their reasonably priced along with fashionable offerings of clothing. H&M was established within Vasteras, Sweden within 1947 by means of Erling Persson, despite the fact that at the instance it merely sold clothing of women's. In 1968, the Persson attains the inventory and premises of a Stockholm chasing store of an equipment named as Mauritz Widforss. The H&M on the other hand is considered as one of world's preferred and favorite designer of clothing and apparels for women as well as for man. Moreover, H&M is not only known for its fashion cosmetic but also because of its clothes quality and durability of designed plus clothes funkiness. The online stores of H&M in UK as well as Europe and US provides exclusive deigns of clothing. The major goal of H&M is to offer innovative apparels and clothing designs for diverse types of people within different states all around the world. On the other hand, H&M has been recognized because of strategy as of providing by clothing designs that are exclusively for every country's needs and preferences (Giertz-Mårtenson, 2012).
Strategic business analysis:
The general misconception of strategic development is merely for big companies. However the truth is that nearly all businesses be able to greatly promote as of an exercise. In order to buying a challenger so as to increasing H&M aiming or capital on behalf of higher growth than H&M must need the accurate structure, strategies, controls and plans within place on the way to optimize the come back on H&M savings. The strategy of Business usually occurs at the unit of business unit or may be the level of product that emphasizes an improvement of competitiveness as well as the corporate positions of services or products within market segment or specific field served through unit of business. The co-operative and competitive are two main strategies of business (Mengistae, 2006).
Given are the things that can be done for business strategy analysis of H&M:
SWOT-Analysis:
The SWOT Analysis such as weaknesses, strengths, threats and opportunities analysis of H&M with respect to advantage of company as well as shortcomings of clubs external and favorable factors are the most ordinary ways within strategic management. The good SWOT analysis might help the company in order to understand H&M better in addition to make an imperative guideline in favor of creating proper plan of marketing strategy. In addition, the weakness and strength belong to an internal derivation of H&M and the threats and opportunities might be examine as of an external environment.
Minimizing risk:
According to Williamson and Cooke (2004) the other reason for developing the H&M business strategy growth plan is to minimizing the risk which is also the reason for entrepreneurs on the way to make strategic planning priority that is reduces risk in a particular periods of an economic ambiguity. The process of minimizing risk will be assessing current situation as well as resources or weakness and strengths plus the business environment of competitors. Moreover, the H&M will be a better operational on the way to create decisions as well as minimize risk during business strategy (Williamson and Cooke, 2004).
Conclusion:
The theme discusses the significance of strategic managing. Because of the development and globalization of Internet. It is compulsory to be familiar with the understanding regarding management of a company at strategic level. It is no doubt quite challenging to conduct in dept analysis of the company's strategic management. Because no initial experience and material was available in this regard for better understanding. SWOT analysis along with other social trends that affected the company were available for analysis. The analysis of the given company included different environmental aspects in scanning. The analysis showed how external factors affect the company and how the company deals with them. It also included internal analysis regarding organization and the economy. The analysis is not complete without the strategic management, which were given in the thesis. That includes the strategic formulation creates its strategies as well as the implementation that puts in use the strategies and last evaluation and control that deals with the results of outcomes.
References:
Andersson, S. (2006). International growth strategies in consumer and business-to-business markets in manufacturing and service sectors. Journal of Euromarketing, 15(4), 35-56.
Giertz-Mårtenson, I. (2012). H&M–documenting the story of one of the world's largest fashion retailers. Business history, 54(1), 108-115.
Mengistae, T. (2006). Competition and entrepreneurs' human capital in small business longevity and growth. The Journal of Development Studies, 42(5), 812-836.
Möller, K., Rajala, A., & Svahn, S. (2005). Strategic business nets—their type and management. Journal of Business research, 58(9), 1274-1284.
Williamson, D., & Cooke, P. (2004). Strategic management and business analysis. Routledge.
