Hannes & Mauritz: Explain The Internationalization Of H & M '

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The aim of this case is to describe the internationalization of H&M and to explain the factors influencing its expansion. Introduction: Hannes & Mauritz (H&M) was established in Vasteras, Sweden in 1947 by Erling Persson. At the very beginning, H&M sold only women’s cloths but later on they began to sell men’s clothing as well. Nowadays, they also have products for children and teenagers. At present, H&M owns 1500 stores in 27 countries, including, Europe, China, USA. H&M is one of the largest clothing retailers in the world. Theoretical aspect of Global Expansion: The Uppsala Model: This model distinguish state and change aspect of internationalization. The present market commitment and knowledge influence decisions concerning the future commitment of resources and the way in which the company performs current activities, and they are, in turn affected by both current activities and commitment decisions. Market commitment can be understood with two factors: the amount of resources that have been committed and the degree of commitment. Market knowledge relates to present and future demand and supply, to competition and to channels for distribution, to payment conditions and the transferability of money. In case of current business activities, it is important to consider that there is often a time lag between the activities and their consequences. Commitment decisions depend on two factors: firstly, what are the decision alternatives and, secondly, how they are chosen.

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