Pestle Analysis H & M

Table of contents

Internal analysis 2

Basic information 2

Core competences 2

Value chain 2

SWOT 2

Brand analysis 2

BCG 2

PLC 2

External analysis 2

Porter diamond 2

Uppsala model 2

Entrée model 2

Shower model 2

SWOT 2

5-forces 2

PEST 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

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

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.

Suppliers:

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.

Substitute:

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.

Buyers:

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