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H & M Porter's Five Force Analysis

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Introduction: H&M Hennes & Mauritz is a massive Swedish multinational fast-fashion retail clothing company, which caters to men, women, teenagers and children. It is ranked the second largest global clothing retailer and generated a gross profit of 76,000 SEK M (approximately US$10,000) in Sweden alone, in 2013. There are over 3,300 stores in approximately 53 different countries, including locations such as Croatia, Turkey, Japan, Europe and many more. The aim of this extended essay is to discover whether the same fate will hold for H&M in India, allowing them to gain a foothold in the Indian fashion market. Since H&M is proposing to India, this will all be speculation, supported by as accurate as possible data collected and analytical tools …show more content…

On the other hand, the expected $865 billion USD in 2023 will be advantageous if H&M can consistently grow and manage to keep their customer base widespread and content. Analysis & Discussion: For my investigation, I have used Porter’s Five-Force Analysis and a SWOT Analysis to help me reach a conclusion of whether H&M will thrive in India or not. To explore the nature of H&M’s competition further, I will be using Porter’s Five-Force Analysis. This study gives a clear idea of the degree of competition in the fashion industry so that matters to be dealt with can be recognized. By utilising a SWOT analysis, the future situation of the brand can be assessed and is therefore a helpful decision-making tool. In the analysis, there are five forces that determine the attractiveness of the industry, depending on the degree of competition. These forces are: threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers and the extent of rivalry among existing competitors. This can be seen in the diagram below. Figure 1: Porter’s Five-Force

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