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H & M Case Study Essay

2989 Words12 Pages

Deirdre Keegan

A00001040

Strategic Management

Case Study:

H & M in Fast Fashion

H & M started from a single store in 1947 and has grown to a fast fashion business with 2206 stores in 43 countries & has 94,000 employees.

The company’s stated mission is:
Fashion and quality at the best price

H&M’s purpose is to offer quality and fashion with the best price strategy. Also to have all their operations were running economically, socially and in a sustainable way.
The goal of H&M is to increase 10-15 percent of the number of stores per year, and at the same time increase sales in comparable units. H&M’s strong financial position allows them to expand continuously with quality and sustainable fashion
(H&M, n.d.“Global Expansion”).

Question 1:

In Which Areas does H & M have strategic capabilities & what are they?
What are H & M s threshold & distinctive resources & competences?

STRATEGIC CAPABILITIES

The “businessdirectory.com” defines strategic capability as a “set of capabilities, resources and skills that create a long term competitive advantage of an organisation”.

The components of H & Ms strategic capabilities are physical, financial & human.

1.IT & Logistics
2.Sustainability project (CSR)
3.Design Collaborations ie Verchase & David Beckham
4.Outsourcing ie – don 't own factories or shops

H & M have many distinctive resources & competencies

The main one that sets it apart from its

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