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H & M Case Study

882 Words4 Pages

I will be analysing the international strategic moves of H&M

H&M is Swedish multinational company, it is a clothing retailer and is known for its fast fashion for men, women, children.
The first store od H&M was open in Sweden in 1947 on the high streets of Vasteras.
It is also ranked as the second largest retailer of clothing.

We will use the porters five forces model and the value chain analysis to analyse the company’s strategic moves.
PORTERS FIVE FORCES ANALYSIS
• COMPETITIVE RIVALRY (HIGH)
In both the large enterprises as well as the small enterprises there are many competitors. All the brands have started investing huge amount in the R&D to renew their products so, as to capture the market share. Therefore, H&M will always have to be quick and stylish at the same time to survive and maintain its position along with the changes and competition.

BARGAINING POWER OF SUPPLIERS(LOW)
The bargaining power of the suppliers is low as there are huge numbers of suppliers and manufacturers in the fashion industry. To meet the requirements of the company H&M has more options by buying and merging with the suppliers.

• BARGAINING POWER OF BUYERS(HIGH)
The fashion industry is growing vast day by day thus there are many alternatives for the buyers is also increasing day by day thus resulting to no customer loyalty to the brand. As H&M ‘s main source of revenue is its fashion clothes they have to monitor their customer needs.

• THREAT OF SUBSTITUTES(LOW)
Every company in

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