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Global industry study: Hennes & Mauritz (H&M)

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  1. Introduction.
  2. 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.
  3. Company environment analysis.
    1. Porter analysis.
    2. SWOT analysis.
  4. Analysis of the strategic operations.
    1. Level of globalization.
    2. Characteristics of the value chain.
    3. External growth strategies.
  5. Marketing strategy and marketing mix of H&M.
    1. Marketing strategy.
    2. Marketing mix.
  6. Conclusion.
  7. Limits.
  8. Bibliography.

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 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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