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H&M SWOT Analysis
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Transcript
STRENGTHS
STRENGTHS
- They offer chic, trendy sytles with rapid turnaround times
- They have strong relationships with a large global networks of suppliers
- Low prices for consumers
- Team of experienced designers from around the world
- Over 30 production oversight offices strategically located
- IT integration system allows H&M to run without any of their own factories
- Results in flexibility and short lead times
- 80% of products manufactured in advance
WEAKNESSES
WEAKNESSES
- Low quality due to more economically priced clothing
- Outsourcing from design to production
- High depence on partner factories results in lack of control over production process
- High dependence on fashion trends because H&M brands itself as a very "trend heavy" brand
OPPORTUNITIES
OPPORTUNITIES
- Collaboration with luxury designers.
- Emerging international markets.
- E-commerce.
- Emerging organic clothing line.
THREATS
THREATS
- E-commerce is generating more competition than ever before
- Online retailers like ASOS, Boohoo, and Topshop
- Social media and evolving trends increase consumer expectations
- Risk of fluctuations in foreign exchange rates
- Rising labor costs for production in foreign countries
- Highly global company has to keep up with constantly changing global trade agreements and laws
GAME
GAME
1. Which of theses is a strenght of H&M:
A) IT integration.
B) Dependence on outsourcing.
C) Luxury designers.
GAME
2. Which of these is NOT an opportunity of H&M:
A) E-commerce.
B) international expansion.
C) Strong financial performance.
GAME
1. Which of these represents a threat for the global brand:
A) Low quality.
B) Social media and evolving threats.
C) Rising labour costs.
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