Managing Relationships and Network
1. Introduction
This report will analyse and evaluate the Swedish firm, H&M, in its resource base and in its existing networks and relationships, focusing on diverse aspects such as horizontal and vertical business networks and collaborations. It will analyse and evaluate also the Argentinian apparel market and industry, since H&M would like to enter this market, which is in the Southern Hemisphere for the first time (Kenna & McLaughlin 2010).
2. H&M
2.1 H&M’s resource base
The Swedish group owns different brands, which are H&M, COS, Weekday, Cheap Monday, Monki and Other Stories. H&M has $16.6 billion brand value; overall it ranks the 23rd position, due to an expansion of the e-commerce offer, as well as a growth in the U.S., Asia and Europe. The 23rd position does not necessarily mean that the company as a low rank position, since it has to compete with a variety of companies which belong to different fields, and not only to fashion (Bhasin and Lutz, 2012).
The shopping online, which is also mobile-adapted, is an invitation and inspiration to visit physical stores. It increases H&M’s service to consumers making more accessible the total amount of goods (Li and Frydrychowska, 2008). This type of sales is growing also because of social media development; in fact social media are essential communication channels when companies want to expand. H&M is one of the leading companies on Facebook, Twitter and YouTube (H&M, 2014; Passport, 2012).
H&M’s employees, which are around 116,000 all over the world, possess special knowledge since they have a three week introduction course with an assigned mentor, who gives them implemented knowledge, skills and H&M’s culture (H&M, 2013). Stores (see App...
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...tinian airports are used by well-known firms (U.S. Department of Commerce, 2013). There are two forms of traditional sales channels: the former is through large-scale retailers; the latter is through different specialized retailers.
3.1 Porter’s Five Forces (Argentina analysis)
4. Conclusion
This report analysed and evaluated H&M, paying particular attention to its resource base and its business networks and collaborations.
This report also focused on H&M’s SWOT analysis.
In addition, it has been analysed and evaluated the Argentinian situation, considering the supply and distribution networks in the apparel market and industry, the consumer behaviour and attitudes, as well as cultural and language issues which can affect B2B collaborations and communications.
In conclusion this report focused on Porter’s five forces in the Argentinian apparel market.
owns such brands as ‘Calvin Klein’ (CK), ‘Izod’, and ‘Arrow’) for $3 billion in cash
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
The fashion industry has changed over a period of time due to the growth of boundaries. This is attributed to the varying dynamics of the industry; declining mass production, altered structural aspects in the supply chain, need for more affordable cost and quality. This shows that fashion retailers are able to acquire a competitive power in the market through making sure through which they get their products to the market for the consumers (McAfee, Dessain, & Sjoman, 2007). Consumers are hence able to get product easy and of high quality. Fast fashion has been able to meet the needs of consumers while trying to acquire major merchandize turnover to retailers than local rivals. The Zara case study reported sales $8.15 billion to its competitors Hennes & Mauritz 0f $7.87 billion (Dutta, 2002). This was the consumer’s one stop shop due to the quality products offered both globally and locally.
Analysis of sports clothing industry, including its main features, key market drivers and competition within industry.
Jane Collins is currently a professor of rural sociology and women’s studies at the University of Wisconsin. She also has published a number of books and articles related to the apparel industry. Collins brought a great deal of knowledge to the writing of this book through her childhood experiences growing up in Virginia and her more then thirty years of research experience in Latin America. However, it could be said that having such extensive experience and narrowed knowledge of the industry may have affected the direction and perspectives found in this book.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
H&M is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53 countries. The company does not own any factories. H&M outsources production to network of 800 independent suppliers; 75% in Asia and 25% in Europe. In order to increase the efficiency and productivity of its supply chain, the company strategically locates its network of 20 to 30 production offices close to its suppliers. According to Stockholm Newsroom, the pretax profit of the company for the month of June to August of 2013 is $907 million, which indicates an 11 rise in turnover (Pollard, 2013). The company continuous development plan facilitates its goal for both brick and mortar, and online stores expansion worldwide. The target segments for H&M, a category specialist store, are trendsetters and fashion/money conscious males and females ranging from 16 to 40 years old with income ranging $15,000 to $60,000 annually.
For the past several decades, globalization has been a hot topic and it also anticipates every aspect of the world to connect each other. Likewise, globalization also allows consumers to have more access to catch up with updated fashion. The advantages of globalization bring a new philosophy called fast fashion, which holds quick response time and enhanced design in fashion apparel industry. In this paper, I will deliver By exploring all the aspects of each system, I will conclude the reason why fast fashion becomes the mainstream of the fashion apparel industry, and use one particular brand, Zara, as an example to discover the impact on consumer behavior in detail. Finally I will make some comments on the future of fast fashion and what luxury brands will react to this circumstance……..
This report will discuss about how external environment affects Harrods’s modus-operandi and the appropriate marketing strategies that they have to apply in the future.
In fact, it is the culture of motivated and empowered entrepreneurial employees that makes Nordstrom’s culture unique (Spector & McCarthy, 2012). There are less rules and procedures for Nordstrom’s sales personnel than in other retail organizations. Their sales clerks also operate with a certain level of autonomy, running their departments almost as if they are private stores (Mello, 2015). This overall strategic approach to HR keeps training costs low, and consequently the cost of turnover is also minimized. This is important, as Nordstrom’s turnover, due to the level of internal competition and entrepreneurialism this type of retail strategy requires, is one of the highest in its market (Mello, 2015). The high turnover rate makes HR planning an important factor in ensuring a stable workforce that can create and maintain ongoing customer relationships (Spector & McCarthy, 2012).
It is important for LVMH to continue to distinguish themselves from other luxury brands, and by continuing to acknowledge that their products are desires and not necessities. They sell luxury, and image. It would be advisable to have better relations with their customers, to increase customer loyalty, but to also get into the minds of the consumer to give the consumer what they desire, all the while staying ahead of the competition. Researchers should be assigned to each specific business unit; it would be a good idea to treat each unit as a separate entity, all-contributing to the same end. By individually enhancing each unit, and eventually collaborating in the end, LVMH will be most profitable. Internet ventures are very important, we live in a time that thrives on technology, and making efforts easier for consumers will be key. Continuing to portray an image or a message with each product will contribute to the brand differentiation. The continual acquisition of profitable names and organizations will continue to increase the profitability of LVMH.
The following has been discussed in the document proceeded in order to fully understand Mr Price Group Ltd. Focusing on Mr Price clothing. There is a brief history of the company and the struggle it in counted before become a successful franchise. The successful business is then further analysed using a variety of tools such as SWOT, Porter’s Five Force Model and PESTLE. Once all issues relating to the business are mentioned, strategies are recommended in order for the business to reach full potential. This is all found using primary and secondary resources.
To achieve equilibrium, H&M encourages open communication and employee engagement within the company to satisfy both goal and needs. They came up with an “open book principle” granting every employee the right to express their thoughts on work related issues directly with management. They, too, reinforce the Human Resource Management system by having performance appraisal, a method to evaluate job performance. H&M has done it by using the method of providing feedback as they believe in learning through their own mistakes. Besides, to ensure workers’ work-life balance, the company strongly discourage overtime work and endorse flexible working hours. Everyone in the company is given the opportunity to schedule around their personal and working responsibility. The company also provide comprehensive fringe benefits for their worker which includes staff discounts, incentive bonuses, maternity leave and many more. This is because the Human Resources in H&M emphasise more on job satisfaction rather than title or pay structure. Analysis indicates that H&M has incorporated job enlargement into their business whereby they increase task variety by combining two or more task for more experience working. However, the volume of task to be done is too gruelling for employees causing their company to be listed as one of the highest employee turnover and lowest labour morale in 2008. This shows they have poor job
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.