Japan PEST analysis3
A.Political Landscape3
B.Economic Landscape3
C.Socio-cultural Landscape4
D.Technological Landscape5
II.Fashion Industry: Five Forces of Porter6
A.Threat of new entry6
B.Bargaining power of suppliers8
C.Bargaining power of buyers8
D. Threat of substitute products/services9
E.Intensity of rivalry among competitor10
III.Company analysis11
A.H&M11
1.H&M Vision, Values, Goal and Strategy11
2.H&M’s internationalization process11
3.H&M’s organizational structure12
4.H&M’s Global Role13
B.SWOT Analysis14
1.H&M in Japan14
2.ZARA in Japan17
C.Value Chain Analysis19
1.Logistics.19
2.Operation.20
3.Marketing & sales.21
4.Service.21
5.Infrastructure.22
6.Human resource management.23
7.Technology24
8.Procurement.25
IV.Strategy and environment26
V.Recommendations27
Introduction
H&M was established in Vasteras, Sweden in 1947. At the beginning, it was given the name Hennes (the Swedish word for “hers”) because only women’s clothes were sold there at that time. In 1968, men’s clothes began to be sold in the stores thus, the company changed its name to Hennes & Mauritz (H&M in short). In the following years, H&M kept expanding continuously in different markets. The business concept of the company is “to provide people with fashion and quality at the best price”.
The company arrived in Japan in 1998 seeking a notoriously market whose consumers have one of the strongest purchasing power worldwide to offer fashionable items at low price. This operation was considered an important step in the international expansion for the company because it represented not only an opportunity to grow in a solid economy but it also meant a huge challenge in considering the cultural and social differences.
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H&M Marketing Audit
Collection of data 3 Internal analysis 3 The Value Chain 3 SMS-model 4 External analysis 4 PEST 4 Porter’s Five Forces 5...