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. Our studied company is Hennes & Mauritz AB (H&M). Before analyzing all the international operations of this group, it seems to be interesting to make a brief presentation of this Swedish company. H&M was founded in 1947 in Vasteras 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 1 500 H&M stores present in 28 countries. Moreover, H&M is one of the most durable company 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's what we will see further. First, we will present a general overview of H&M, then we will develop the key points of the fashion clothing market, third we will analyze the main strategic evolution of the company and finally we will discuss the marketing mix of H&M.
[...] In this part of the survey, we will first analyze 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. [...]
[...] A SWOT of the H&M group will also be established in order to have a better observation on its current situation inside this general and global context Porter Analysis The Porter analysis presents five characteristics of a market environment. It analyzes the competition between the actors of a same sector. 1 The intensity of competitive rivalry H&M's main competitor is represented by the Spanish group Inditex[12] which contains the brand named Zara. Both brands are fighting for the first position on the world wide fashion and clothing apparels market. [...]
[...] H&M considers the worldwide market as a unique market and aims to standardize its marketing actions in a global way. Therefore, we can consider that it is a global firm Characteristics of the value chain The concept of the value chain was developed by Porter in 1986. It describes the different steps which determine the organization's capacity to obtain a competitive advantage. This advantage may be obtained by proposing a product giving value to its customers. The value chain divides the firm in five main activities (inbound logistics, production, outbound logistics, marketing and sales and after sales service) and four subsidiary activities (infrastructure, human resource management, technology development, procurement). [...]
[...] 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. [...]
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