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Case Study: H&M in Fast Fashion: Continued Success.

In: Business and Management

Submitted By anyefengbao
Words 3142
Pages 13
Title: Case Study: H&M in Fast Fashion: Continued Success.

Word count:2638
Abstract
This report contains the analysis of value and culture of reputable apparel retailer H&M, as well as three analysis method, which is PETEL, Porter’s five forces, and VRIO framework, to analyse the external influence factors, competitors, and competitive advantages of H&M.
Three new potential strategies are tested by using the model of Johnson and Scholes, and one proper strategy will be retained to carry out an Action Plan.

1. Introduction
In 1947, the incredible apparel retailer was founded by Erling Persson in Sweden. Over half century, Persson’s 34 years old grandson, named Karl-Johan Persson, took over H&M in 2009(Regnér and Yildiz, 2014).
As a pioneering ‘fast-fashion’ retailer, H&M spread in 43 countries, with 2,206 stores worldwide (Regnér and Yildiz, 2014). ‘Fast-fashion’ can be defined as a quick response to up-to-date luxury fashion trends in an affordable price, which meets the deeply held desires for young customers (Joy et.al, 2012). The store expansion has continued at several places, such as Denmark, the United States, Great Britain, also in several European Countries like Spain, Germany (Barman and Petersson, 2002). In order to sustain the growth rate of H&M, the CEO, in 2011, invested more stores and opened another 218 stores on the Champs-Élysées in Paris to strengthen their brand and ensure the future expansion. Following that, in the next few years, another 230 stores were established, involving 35 in China (Regnér and Yildiz, 2014).
H&M has become the global leader in the ‘fast-fashion’ section, owing to its’ distinctive business approach which enhance the competitiveness. In common, the business model of H&M is ‘cheap-and-chic’, underlined high fashion at costs below other competitors, with the…...

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