SWOT Analysis of H and M PDF

Preview

Summary

SWOT Analysis of H&M...

Description

SWOT Analysis of H&M February 2, 2018 SWOT Analysis of H&M: The history of H&M starts from 1947 when the first Hennes (meaning Hers) store was opened in Vasteras, Sweden. Hennes acquired the Stockholm based apparel retailer Mauritz Widforss and the name was changed to Hennes & Mauritz (H&M).

Strengths

Weaknesses

S1: Continuously growing and further expansion plan to several foreign countries S2: Wide range of products: clothes, home décor, cosmetics, accessories, footwear and sports wear S3: Strong brand power and global recognition

W1: Online stores available in only few parts

S4: Diversified benefit schemes for employees and customers S5: Good response for the initiative of reuse and recycle of garments; 39000 tonnes of garments have been collected since 2013

W2: Reduced sales in the fourth quarter of 2017 due to imbalance in assortment collection (H&M Group, 2017a) W3: Sales increased by only 4% in 2017 as compared to 2016 marking the lowest growth rate in the past 5 years (H&M Group, 2017b) W4: Does not own a factory but procures its goods from around 700 suppliers, primarily in Asia and Europe

S6: Appreciation for contribution towards sustainability by getting cotton from sustainable sources and using recycled materials S7: High profitability

Opportunities Threats T1: Risks from fluctuation in foreign exchange T2: Rapidly changing fashion trends T3: Low sales in physical stores due to increasing inclination of customers towards e-commerce

O1: Business expansion in Asian countries like India and China O2: Increase of focus in customers towards brands 03: Increasing concerns in customers regarding environmental hazards and bent towards sustainable practices

T4: Facilitation for new entrants through e-commerce Table 1: SWOT Analysis of H&M

References H&M Group (2017a) Press Release [online]. Stockholm: H&M Group. Available from: http://about.hm.com/content/dam/hmgroup/groupsite/documents/en/cision/2017/12/2086687_en .pdf [Accessed 31 January 2018]. H&M Group (2017b) Five Years Summary [online]. Stockholm: H&M Group. Available from: http://about.hm.com/en/investors/five-year-summary.html [Accessed 31 January 2018].

Anisha Agrawal...