Global industry study : H&M

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Global industry study : H&M

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Abstract

The aim of this International Marketing survey is to present the international operations of a global brand and to confront them with our international marketing lessons. The company we are going to study is Hennes & Mauritz AB (H&M). Before analyzing all the international operations of this group, it would be interesting to make a brief presentation of this Swedish company. H&M was founded in 1947 in Västerås Sweden by Erling Personn. During the last fifty years, the company expanded and became a global brand, famous all over the world. Nowadays, 68 000 employees are working in 1500 H&M stores present in 28 countries. Moreover, H&M is one of the most durable companies in the world. Becoming a global brand involved an adaptation of the company's strategy and structure. What is the current position of H&M in the growing fashion and clothing market and what is the strategy enforced by the company to confront with this market? That is what we will see in this study. Firstly, we will present a general overview of H&M, and then we will develop the key points of the fashion clothing market. Thirdly we will analyze the main strategic evolution of the company and finally we will discuss the marketing mix of H&M.

General overview of the International activity of the company
1. Current International activity of H&M
2. Structure of H&M
3. History of the international activity
4. Actuality of the International development:
Company environment analysis
1. Porter Analysis
2. SWOT analysis
Analysis of the strategic operations
1. Level of globalization
2. Characteristics of the value chain
3. External growth strategies
Marketing strategy and marketing mix of H&M
1. Marketing strategy
2. Marketing mix

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[...] and quality” articles Durability of the company (since 1947) Cares about environment and working conditions (good image) Opportunities: Threats: Price is one of the most - Zara seems to penetrate new important criteria for the market faster customers - A lot of substitute products Growth of the Asian market - Fashion can change rapidly New collection : COS - Different rules and norms Customers take into account depending on the countries companies' behaviour about - Risks of misunderstandings and environment and working conditions failures by entering new markets Analysis of the strategic operations In this part, we will analyze the strategies applied by H&M to become a major actor in the textile and fashion industry. [...]

[...] Conclusion During this study, we observed that H&M had a global marketing approach. It offers standardized products in the fashion and clothing market in different countries by using a similar Marketing Mix and global (sometimes local) advertising and communication. The shops are also standardized by keeping the same atmosphere although the size may vary. The group penetrates new markets year after year in order to increase its presence in the whole world. The conception is made in the headquarters in Sweden whereas the production is done abroad of its suppliers are located in Asia (China and Bangladesh) and the remaining 40% in Europe (Turkey and Italia). [...]

[...] ( International strategy As we said before, H&M applies a global market strategy. Indeed, it develops a standardized product for all markets that allow the company to realize economies in product in marketing, and economies of scale in production. H&M can consequently be considered as a member of the global competition Price Price is the main point of differentiation with H&M's competitors. The creed of the firm is to provide fashion clothes at affordable prices, and this mission is fulfilled. [...]

[...] In this part of the survey, we will first analyse the current international activity of H&M and then we will present the development and the market targeted by the company Current International activity of H&M H&M is currently present in twenty eight countries, for a global income of billion SEK 92 123[4] (million EUR 9.833 in 2007. It represents an increase of 15% comparing year 2006. Its presence is mainly located in North America and in Europe. The following graph describes all the markets of H&M. [...]

[...] H&M has settled a strategic cooperation for long term improvements. Initiatives are taken, such as the improvement of working conditions for those employed all over the world through education and independent monitoring. Concerning the suppliers, H&M requires factories who take cares of their waste water. It also set requirements of the water's quality discharged by its factories. H&M cooperates with UNICEF since 2004. This cooperation involves a programme for the prevention of HIV/AIDS in Cambodia. It also takes part in the campaign: “Fashion against AIDS” through a partnership with the collective “Designers against AIDS”. [...]

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