H And M: SWOT Analysis Of H & M

Mission Statement

A mission statement’s purpose is to communicate to employees and other stakeholders what business the organization is in. It should also act as a motivator for the entire organization to work towards shared goals, since employees tend to require a motivating tool that gives their everyday business processes a deeper purpose.

Example: ”Fashion and quality at the best price.” (H&M)

Vision

A vision statement is concerned with the future of the organization and typically acts as a roadmap for where the organization is headed. The purpose being to guide internal decision making to lead the company to the desired outcome.

Example: “Our vision is that all our operations are run in a way that is economically, socially and environmentally

Through SWOT analysis the organization can build its strengths and reverse its weaknesses. The analysis can also be used as a basis for strategic planning and assessing future action plans. By helping to identify core competencies of the organization and mapping out threats and opportunities, SWOT analysis can guide the company in setting future objectives. In order to get the best out of the analysis, SWOT should be conducted relative to the company’s competitors, thus measuring the level of competitiveness. There are two dangers in conducting a SWOT analysis. First, producing long-lists of obvious factors with no importance placed on prioritization. Second, utilizing it as a substitute to PESTLE and Porter’s Five Forces, and forgetting the interconnectivity of these

In order to compete with the current players, new retailers would have to be able to quickly design and manufacture products seen on fashion-shows, thus the fast speed of the industry acting as a barrier to entry. New entrants will either have to accept the cost disadvantage, or find the financial capability to reach economies of scale.

Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products

Rivalry Among Existing Competitors

The fashion industry is an oligopoly, meaning that the whole sector is dominated by a small number of players. The industry tends to be one of the most rivalrous in the world, due to low differentiation. Since the products produced by H&M, ZARA and Mango are so similar, there is little to no cost for consumers to switch between competitors. Since in the commodity market consumers are making purchasing decision based on price and service, the retailers are constantly trying to produce the same clothes at a cheaper