H Report

Table of contents 1. Introduction 2. Macro environmental epitome (PESTLE- political, economic, genial, technology, legal, ecological) 3. Customer analysis 4. Market diethylstil outperformrolcription 5. SWOT analysis (Strengths, weaknesses, opportunity, threats) 6. Conclusion and Recomm cobblers lastations 7. References P. 1 D002 T2242531 Introduction H& axerophtholM (Hennes & Mauritz) is a global mold brand and retail clothing political party founded in Sweden, 1947 by Erling Persson.H & M founder Erling Persson beca using up of a U. S. tour, divine him to open a offset harm, elegant womens fashion clothing chime in ideas. (HM offers fashion and graphic symbol at the best expense, 2011) The outset Hennes opened in Vasteras, which is the predecessor of HM. In 60s, he expanded Hennes in most parts of Sweden, developed new markets in neighboring Nor mien and Denmark in 1964 and 1967. In lay out to expand the market bundle and crossway lines in Stockholm, Persson acquired a company c totallyed Mauritz Widforss, firearms and hunting supply retentivitys to retrieve the mens clothing usiness for Hennes. After that, Persson renamed as Hennes Mauritz and tranquillise in use. Until the 21st century, HM began to expand military control in Asia. It has oer 2,300 stores in 41 countries and as of 2011 employed around 87,000 mountain for now. HM designer col wearyations with plenty of famous designers and celebrities, such as Karl Lagerfeld, Roberto Cavalli, Stella McCartney, Comme des Garcons, Viktor Rolf, Madonna, Lanvin and Sonia Rykiel. (HM-Wikipedia, 2011) The report is to analyze just about the HM association (Hennes Mauritz).This includes the Marco environmental analysis (PESTLE- political, economic, social, technology, legal, ecological), customer analysis, market description, SWOT analysis (Strengths, weaknesses, opportunity, threats), aft(prenominal) that, the conclusion, recommendations and references depart be provided. P. 2 D 002 T2242531 Environmental Analysis (PESTLE) PESTLE doer political, economic, social, technological, legal and environmental. Political EU and internal laws codes and practice (David Jobber, 2007, p. 3) HM Company is fol dispiriteding the enactment of Swedish and the actions of Swedish companies, as HM is a Swedish brand and company. Nevertheless, if there is an HM store located in Cambodia therefore that HM storehas to follow the Cambodia government legislation. (Worldnews. com. 2011) For instance, there has an article posted on hm. com about Royal Government of Cambodia is considering amendment to article 67 and 73 of Cambodia enactment. This affects HM as it injures their short-term contracts.If there argon changes in laws, HM has to change the purposes or operations to fit the requirements. Economic economic reaping unemployment interest and exchange rate global economic trends (David Jobber, 2007, p. 43) HM Company has over 87,000 employees in about 41 countries for now, they target appendage around 10-15 percent new stores per year. (HM offers fashion and quality at the best mo electronic networkary value, 2011) It shows HM bring into being a spectacular number of Employment opportunities for the sociaty, conducive to economic growth. societal changes in institution population, age distri saveion and household structure attitude and life personal manner changes subcultures at heart and across national boundaries consumerism (David Jobber, 2007, p. 43) HM makes sure all products discharge meet customers anticipation. All products suck in to go through with(predicate) over 100 quality controllers, to inspect if the quality of the product tooshie meet the quality and safety standard. That guarantees that HM customers cannister use HM products safely.HM Company supports UNICEF in Uzbekistan to show their social responsibility and tries to prevent minor work in cotton milling machinery of Uzbekistan. These projects raise the awareness of th e right of the child and give safeguard. HM is going to donate US$ 150,000 to UNICEFs work in Uzbekistan. (IPS ipsnews. crystalize, 2011) P. 3 D002 T2242531 Technological new product and process technologies new materials (David Jobber, 2007, p. 43)HM has two types of technology that will affect the business that are media technology and printing machines. In the operation of making clothes some of certain(p) colors and designs need some unusual or much high-toned machine to finish therefore HM can contain the product in a quality. (Adpunch. org, 2010) The evolution of media technology will attend to HM pay back popular through the Internet and advertise. The website and media declare to be updated to become to a greater extent eye-catching and disseminate their news events, it can extend the exposure of HM to the ommunity. Legal EU and national laws codes of practice (David Jobber, 2007, p. 43) HM Company cares about the protection of child however so far this year, the col lective fainting incident at the show collapsed the number of employees has more than one thousand five hundred slew. The labor department of Cambodia said the hypothesize of this trend is including the use of pesticides, dust, heat, perssure and carry the advanceds to effort goods consuming high physical work, hundreds of workers gathered in the broken and close environment.They believe that part of the plant is really have problem, such as in poorly ventilated conditions using specific chemical agents. conjunction Legal Education Centre claimed that the lack of further work in Cambodia environmental monitoring system. HM said the company late concerned about the incident and seeking to investigate. (International Labour memorial tablet, 1996-2011) Environmental global warming pollution energy and different scarce resources environmentally friendly ingredients and components recycling and non-wasteful packaging (David Jobber, 2007, p. 3) HM is evermore caring about t he environment, particularly the development of organic cotton. Plenty of people try to invent cotton against nature, for example, produce cotton with chemicals. In order to protect the environment and gain the good image for HM Company. HM Company has to follow roles that can protect the environment. (HM offers fashion and quality at the best bell, 2011) P. 4 D002 T2242531 Customer analysisH M is fast, aggressive, accurate as the main feature of the speedy rise of fast fashion, driven by global fashion trends. (HM offers fashion and quality at the best terms, 2011) They overly describe its mission as Fashion and quality at the best price. HM is used in small, a variety of product strategy, it breaks the traditional limit apparel industry, in the same season will continue to introduce new models for consumers to choose. HMs business scope has mens, womens, womens underwear, childrens clothing and accessories.General characteristics of HMs clothes are rich in color choice, sty le wild simple, dynamic and fashionable, casual, comfortable, cheap, not expensive, therefore the products of HM are suitable for the students, youthfulness office ladies, travellers. (Just-style, 2011) They have set the target consumers conclave of young people, who aged around 15-30, this type of fashion buyer chemical groups with a high degree of sensitivity and have some spending power, but do not have the ability to possess the regular spending of high-class brands product. (Inspiring customer experience, 2010)For instance, there is a young woman, who may just graduated or still studying in university or high school. She cannot afford to buy high-class brand clothes, she might consider to buy HM clothes, because HMs clothes are design by large number of famous designers and celebrities. This shows HM attracts plenty of young girls who have high degree of sensitivity. P. 5 D002 T2242531 Market description Swedens HM Company, full name Hennes Mamitz, by founder Erling Pers son founded in Sweden in 1947, the clothing retail chain.Currently in Europe and North America 29 countries and regions have their retail stores. Annual sales of goods more than 5. 5 million, has become one of the Europes largest clothing retail chain. The major tally of HM is ZARA. Spanish fashion brand ZARA is well cognize in Spain ranked first, third softball apparel retailer Inditex companys brand, the company has nearly 2,000 stores worldwide, ZARA is one of nine brands if Inditex, the most famous flagship brand, is considered to be Europes most research value of the brand. Tony Hines and Margaret Bruce (2007)The achievement of both companies benefited from the use of unique marketing strategy. Two companies have taken on in the price of low-coast strategy. ZARA is target the consumer group has high income and high-educated young people, mainly 25-35 year-old customer layers, HM has set the target consumer group of young people 15-30 years old. Two companies frequently upda ted fashion brazen products just to meet the needs of this population. HM take the price lower than ZARA layer of strategy. According to statistics, HM fashion price is lower than ZARA about 30% to 50%.Tim Jackson and David Shaw (2009) In price discounts, HM is using the less discount strategy, because all products of HM are small amount and variety, for example, consumers who buy the first time, there is a risk of no longer buy, therefore they are often unable to wait until the end of the quarter or the end of the year discount. It is kind of psychological advantage of consumers. Almost all of the goods exchange in a short time, leave only a small amount of undesired products at discount end of the quarter or the end of the year.HM estimated 2005 pre-tax profit of 1. 4 billion, on sales of 6. 3 billion. (David Jobber, 2007,p. 35) P. 6 D002 T2242531 SWOT analysis SWOT means strengths, weaknesses, opportunities and threats. (David Jobber, 2007,p. 46) Strengths The main reason why HM has become popular is low price. HM provides good quality clothing, department store price that is passing unusual in many of todays retailers.Another advantage of the HM is the product delivery time, only less than 13 weeks, a project from the design to retail store, that is quite impressive for a international, low price retailer. (Jings market Blog, 2011) In addition, they use knob designer bands and shop to keep the line fresh and special, at an affordable price, ability to reach a large target market to cope with different fashion tastes, having a well-kn have brand name. Weaknesses Customers may recall clothes to be low quality because of the low price, that is a type of psychological of some customers and the quality of service also is a problem for HM.A large retail store, if there are only a few numbers of staff, they are unable to take care of all the customers. On the other hand, because the company buys a large number of means, there is no one can promise all the items will be sold out. That means their low price may have to be lower and lower to attract consumers to buy their products or means that HM Company may have to pay additional depot space for these unsold items. (HM-Facebook, 2011) Opportunities There will be a good opportunity launch some clothes are for elder people. They can develop a new line for elderly people.I think it would be a good opportunity for HM, because elderly people also want to wear fashion clothes with a nice, low price, I also think this opportunity can let HM become more popular, also make more people aware of this brand HM. Threat There is more and more new retailers appear in the market, such as ZARA, Forever 21, River island. These retailers doubtless formed a kind of competition, each firm also has their own marketing program, own characteristics, and the main threat is they are also using the same marketing strategy as HM good quality at a low price.HM has to create some new strategy to strong stay co mpetitive. Tim Jackson and David Shaw (2009) P. 7 D002 T2242531 Conclusion and Recommendation The biggest threat for HM is other retailers from other countries, they are also have plenty of capital and technology to against HM, therefore HM should have some innovation actions and strategies to sum up the competitive in the fashion market to maintain and attract more customers.First, rely on HMs standardized centering capabilities to continuously improve their management level and the quality of products. Second, full put to work to their favorable factors and development, and vigorously promote the clothing company with foreign strategic cooperation. Third, appropriate under the circumstances of the adjustment value, adjusted by way of sale. References David Jobber (2007) Principles and Practice of marketing 5th Edition Fast fashion. (2011). Retrieved 21 October 2011 from the Wikipedia website http//en. wikipedia. rg/wiki/Fast_fashion HM Discussions (2011). Retrieved 1 January 2 009 from the Facebook website http//www. facebook. com/board. php? uid=21415640912 HM readies itself for sourcing challenge (2010) Retrieved 12 June 2010 from the just-style. com website http//www. just-style. com/analysis/hm-readies-itself-for-sourcing-challenge_id108103. aspx HM experiments with technology driven campaign (2007) Retrieved 30 August 2007 from the Adpunch. org website http//www. adpunch. org/entry/hm-experiments-with-technology-driven-campaign/ P. D002 T2242531 HM-Cotton from Uzbekistan (2011) Retrieved 25 April 2009 from the HM website http//about. hm. com/gb/corporateresponsibility/supplychainworkingconditions/supplychainmonitoring/cottonfromuzbekistan__monitoringarticle5. nhtml HM offers fashion and quality at the best price (2011) Retrieved 25 August 2011 from the HM official website http//www. hm. com/gb/ HM in Cambodia (2004) Retrieved 17 May 2004 from the International Labor shaping website http//www. lo. org/global/about-the-ilo/press-and-media-centre/vide os/video-news-releases/WCMS_074487/langen/index. htm Hennes&Mauritz (H&M), AN HRM CASE STUDY (2009) Retrieved 12 September 2009 from the ideas and thoughts website http//ideasthoughts. erruppackal. com/2009/09/hennes-mauritz-hm-an-hrm-case-study/ Hundreds of workers collapse at Cambodian H&M clothing factory (2011) Retrieved 29 August 2011 from the Worldnews. com website http//article. wn. com/view/2011/08/29/Hundreds_of_workers_collapse_at_Cambodian_H_M_clothing_facto/Social Media strategies of HM (2011) Retrieved 15 May 2011 from the Inspiring Customer watch website http//patperdue. com/social-media-strategies-of-hm-zara-and-esprit-analysis/ Tony Hines and Margaret Bruce (2007) Fashion marketing second edition Tim Jackson and David Shaw (2009) mastering fashion marketing UZBEKISTAN Forced child labor kills (2011) Retrieved 19 October 2011 from the IPS ipsnews. net website http//www. ipsnews. net/news. asp? idnews=105514 4P analysis of HM (2010) Retrieved 24 October 2010 from the Jings Marketing Blog website http//blogs. ubc. ca/jingwei/2010/10/24/4p-analysis-of-hm/ P. 9