H & M Swot Analysis Essay

SWOT for H&M

Strengths

Currently, H&M had 2,206 stores around the world where the business model for H&M provides the latest fashion trend, good quality product with affordable price to its customer. H&M implements a smart strategy by collaborating with many world class designers, such as Alexander Wang, and Versace designer Sonia Rykiel. This collaboration lets customers feel that they are purchasing high fashion apparels that they normally could not afford it. Other than that, there are 200 in-house designers under H&M’s design teams as H&M is able to minimize the time-to-market. H&M believes that the company’s brand name is one of the key success factors where 5 per cent of H&M’s revenues are spent on the propaganda. H&M uses the star effect

H&M successfully reduce the lead time gap by a strong control of the entire business model operation process at the same time this helps H&M to decrease the lead time. H&M’s production offices contact directly with suppliers. In this case, H&M is able to identify as for placing order with the right supplier. The information system enables H&M to support the swift and efficient flow of goods. The logistics department in H&M relies on the effective information sharing with come with the latest information. Thus, the information system also provides H&M with customers’ preferences and customers’ needs.

When there is presence of delegation of authority, H&M had more advantage compare to its competitors. This is because that the employees are allowed to act freely where store managers run businesses of managing the stores like his owns the business. This helps to maintain the loyalty and also the responsibility of employees.

In the H&M’s 2011 annual report, it mentioned the annual growth rate of 20 percent compare with 2010. This had proved that H&M customer satisfied with the quality and the price of H&M. H&M was ranked 21th among the 100 most valuable global brands in the year of 2011. H&M greatest competitor ZARA was ranked 44th and GAP ranked