Pestle Analysis H & M

950 Words4 Pages
Table of contents
Internal analysis 2
Basic information 2
Core competences 2
Value chain 2
Brand analysis 2
External analysis 2
Porter diamond 2
Uppsala model 2
Entrée model 2
Shower model 2
5-forces 2

Internal analysis
Basic information
H&M was established in Västerås (Sweden) in 1947. Nowadays H&M is one of more popular and required fashion company in certain countries. H&M Group offer their fashion under six brands (H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories) in 3511 stores at 55 countries. They are producing and selling a wide range of clothes for woman, men and children and also (cosmetics and accessories) consisting of both very cheap clothes and high end
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H&M uses its size and influence to help move development in a positive direction.

H&M is a leading global fashion company with strong values and a clear business concept. H&M has a passion for fashion, a belief in people and a desire to always exceed customers’ expectations.
Core competences
The core competence of the company is high quality of product and low price. H&M follow trends, this is the main competence. Company are really good researching the needs of the consumer (+low price and high quality). This is why people like and buy H&M clothing.
Value chain Inbound logistic: This includes material handling, storage, logistic, testing, support. It has production office place the order with the right supplier and low price, but the best quality.
Operations: The only thing what H&M Group make is design. They have group of designers which make design and them company make agreement with manufacturing companies, more often its Asian manufactories.
Outbound logistics: H&M don’t have their own supplier. All the process was making by different companies. The outbound they have
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Entering the apparel industry does not require a huge capital investments and many individuals have the means to start a clothing line. Because quality is a central topic for H&M and fashion for a low price, H&M shouldn't fear for being replace by another company's products.
An increased globalization has originated international trade, thus more options for retailers to source from foreign manufacturers. H&M Buys its products from approximately 800 independent suppliers, primarily in Asia and Europe, in countries where the textile industries offer considerable skill and experience. Cooperation with suppliers is both a close and a long- term relationship.
There are not direct substitutes for apparel, but there are substitutes to retail (because of the great quantity of suppliers). H&M increase their strengths by performing annual checks at the stores with the aim of determining the strengths and weaknesses of the stores and how many shortcomings can be corrected.
There is an overabundance of retailers in the market. This leads the buyers to switch easily from one brand to another. The retailers seek to offer what the buyer's demand. H&M's own designers work together with pattern designers and buyers to create a broad range that offers inspiring fashion for

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