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H & M Case Study Solution

852 Words4 Pages

As everyone known, H&M is a ‘fast-fashion’ retailer. As the case mentioned, currently H&M had 2,206 stores around the world. The business model for H&M is provided latest fashion trend, good quality product with affordable price to its customer. One of the smart strategies of H&M is collaboration with many world class designers, such as Alexander Wang, Balmain designer Olivier Rousteing and Versace designer Sonia Rykiel. The collaboration with world class designer made the customer feel they are purchasing high fashion shirt that they normally cannot afford. Not only that, there are approximately 200 in-house designers under H&M design team, this allowed H&M to minimize the time-to –market. H&M also believed Strong brand name is one of the …show more content…

409). The greatest weakness of H&M is that the company fully depended of outside supplier to manufacture its products. H&M have no factories; product is outsourced to independent supplier. This would be too dependent on its supplier and this might damage H&M reputation in term of products quality. As I mentioned previously, H&M outsourced its products to 747 suppliers in around the world. Even though H&M had highlight that they has a rigorous audit system to audit its supplier, and they have a code of conduct that the supplier must follow, yet it is still hard for H&M to control the product quality, delivery time and so forth . This is because they do not have their eyes on the factories 24 hours, thus many things could be neglected. Also the case mentioned, H&M do not have control toward their supplier transportation, if any delay of the shipment; this can lead to shortage of inventory or increase the lead time gap.
As the case stated, in order to created greater economic of scale, H&M placed a large amount of order to its supplier. This might jeopardize the H&M cash flow since the holding cost and carrying cost is huge. In a long turn view, this could be a burden. Furthermore, there is no guarantee H&M can sell its entire products.
The next weakness of H&M is H&M have no ownership of property. When come to selecting store location, H&M always position it outlet in very best location .Undeniable, H&M do a great job on this and this might also offer the local customer the best shopping experience. Yet, the completely dependent on renting store premise could be a weakness to H&M especially when the contract is

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