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case study
Q1. In which areas does H&M have
strategic capabilities and what are
they ?what are H&Ms threshold and
distinctive recourses and
competences?
Resources of H&M:
Physical
leases a lot of stores in different countries (43)
Retailer of fashion apparel, cosmetic, accessories and shoes for
women, men, teenager and children.
Own apps customers can explore the latest collection and
campaign
have buyers and production offices (50) centralised in Stockholm
dealing with large amount of supplier, work with the qualified
suppliers in producing and distributing the merchandises on time
Financial
have a cash flow of 2,799,654, more than its competitors like GAP.
intangible asset like strong brand name associated with its value
and stylish collection
Ranking 21st among the top 100 most valuable global brand from
Interbrand, brand value $16.5 billion.
Human
Production is outsourced to independent suppliers and
some of them is long term strategic partners
Employed more than 94,000 employees worldwide.
Good management which are experimentation, trail-and
error learning, fast decision making and willingness to take
initiatives and try new ideas.
has a team of almost 200 in house designer collaborations
and 100 pattern maker.
Mix of Supply chain management , logistics and IT system
High employee loyalty and great motivator.
Provide internal promotion and job rotation
Competences of H&M:
Physical
End of 2010, H&M already had 2206 stores which include 5o
franchise stores, 35 COS stores, 48 Monki stores, 18 Weekday
stores, One Cheap Monday store.
Business is operated from leased store premises in increasing
flexibility and adaptability on the changing demand patterns
and location attraction in its key market.
through catalogue sales
Window display, important as this is where the customer meets
needs.
Strong social media presence
Control virtually all logistics internally by using integrated direct
distribution as to support the shift and efficient flow of goods
avoiding middlemen.
Receive new shipment daily , store keeping merchandise is
minimized.
Logistics depend on effective information sharing and the latest
systems.
Financial