H&M Hennes & Mauritz AB

The table below illustrates H&M SWOT analysis template

Strengths

1.        Value proposition of style for affordable prices

2.       High speed of new product development. The timeframe for new products to reach shop shelves from design stage is limited to 12 weeks

3.       Benefiting from the economies of scale due to the large scope of operations

4.       Efficient application of celebrity endorsement marketing strategy via attracting Katy Perry, David Beckham, Madonna and others
Weaknesses

1.        Weak utilization of online sales channel

2.       Vulnerability to overstocking due to the practice of producing high quantities of items with no guarantees of sale

3.       Lack of control over the manufacturing of products

4.       The practice of following fashion trends set by competitors rather than setting own fashion trends
Opportunities

1.        Placing a greater focus on online sales channel

2.       Expanding the target customer segment to comprise middle-aged and older customers

3.       Entering into strategic cooperation with well-known designers

4.       Increasing presence in developing counties especially China, India and former USSR-blog countries
Threats

1.        Weak economic situation in Europe is negatively impacting purchasing power of the target customer segment

2.       Risks of supply-chain issues due to the long distance between suppliers from developing countries and shops

3.       Emergence of new competitors with access to cheaper resources

4.       Decline in the quality of products due to the further pursuit of cost leadership

How to use H&M SWOT Analysis template above

H&M SWOT analysisExpand each point above into one or more paragraphs with discussions and analysis. Additional points related to H&M strengths, weaknesses, opportunities and threats not listed above can also be included if you think they are relevant points and add value to the work.

You will need to support your arguments with references from reliable sources such as annual report of the company, industry journals and magazines and government publications. Your discussions will need to include statistical data and preferably charts and graphs with references to the sources.

You can also find many examples for the application of SWOT analysis using the case studies of famous global brands here.

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