swot analysis hm

SWOT analyse

Where does SWOT stand for?
SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)

What is the SWOT analysis?
The SWOT analysis is a method of assessing a business, its resources, and its environment. Doing an analysis of this type is a good way to better understand a business and its markets, and can also show potential investors that all options open to, or affecting a business at a given time have been thought about thoroughly.

What is the essence of the SWOT analysis?
The essence of the SWOT analysis is to discover what you do well; how you could improve; whether you are making the most of the opportunities around you; and whether there are any changes in your market—such as technological developments, mergers of businesses, or unreliability of suppliers—that may require corresponding changes in your business. This actionlist will introduce you to the ideas behind the SWOT analysis, and give suggestions as to how you might carry out one of your own.

– numerous options in collections and styles, there is something for every person – affordability, it’s important for people to get something with quality for a good price Weaknesses
– customer services become difficult to maintain for big store space and numerous product lines – A store that is that big can not offer a personal care like a small boutique opportunities
– association with celebrities – creating fame and attchment to brand, like the commercial with Beyonce on television. I think you all have seen it. – Website management- producing and selling the products by website, customers shopping by internet without visiting the store, also it can shipping to USA and Europe. threats

– Competition from other high street retailers like ZARA, River Island, Berschka. – Negative impact on celebrity endorcement campaign – debate on celebrity choice

Specific issue(strategic option):
Fashion and quality at the best price.

The H&M brand is a very strong brand in Europe. However to make even more profit they can make it worldwide and expand in areas for example Latin America. In addition they could improve online shopping with h&m. Because it is only available in a few countries.

Their prices are already reasonable for quality products they offer. However they could improve by making use of more sales actions.

H&M has already a strong promotion policy.
For example they use:
Poster on busses,
Commercials on tv, facebook etc.
Free catalogues
Each season we strive to feature models with different looks, styles and cultural backgrounds to advertise our concepts for women, men, teenagers and children. However if we would chose an idea to improve their promotion we would introduce to expand the idea of online bloggers. Online bloggers get the clothes of the brand for free. And in return they have to upload pictures of their outfits in social media such as Instagram, Twitter, Facebook , Linkdin etc.


How does sustainability fit with H&M’s business model and continued growth?

There business idea is to offer fashion and quality at the best price. Sustainability is an increasingly important part of this. Sustainability will more and more become a hygiene factor in the industry. The goal for H&M is to be at the forefront of sustainability. They want to strengthen their customer offering. In order to do that adding sustainable value to their products is one of the keys to do so.

The book chapter 2


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