This 3 page paper is a brief examination of Hennes and Mauritz also known as H&M. The paper conducts a SWOT analysis to look a the companies strengths, weaknesses opportunities and threats, the paper also considers Porters Five Forces and identifies the companies core competences and existing strategies.
Name of Research Paper File: TS14_TEHandMsw.rtf
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strengths weaknesses opportunities and threats. Strengths The company is very strong financially, profits have been growing each year at a good level. The company is also in 14
countries which gives a spread of risk over different countries economic conditions. The inventory and ordering system is a strength with the ability to link in directly to the warehouse
and the ordering system, is also one that is very lean and flexible. This means that where fashions change or there is a new need identified the company can instigate
that change very quickly. The brand is also a also a strength with a high level of recognition and an association with value. The company also on all of their
own shops which gives then a high level of control, and any out sourcing companies need to abide by the companies own ethical code in order to gain the contract.
Contracts have also been used in different countries to reduce costs. Weaknesses The company is in the retail fashion industry, this is an areas where there is increased competition.
Although the company has a very short lead time and can react quickly, they are not the fastest, this is Zara who are more expensive, but have a faster turnaround
period The company has a large number of offices in each country, one head office as well as sub offices this means higher levels of overheads. Using sub contractors is
usual for the supply of goods, but in using a third party for the transport position there may be cost advantages, but there are potential control and security issues.
Opportunities The company is in 14 counties, and as such ha shown that developing in new markets is a core competences. With the EU expansion and now consisting of 25
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