Pestle Analysis H & M

950 Words4 Pages
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
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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.
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

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