H&M Case

6764 Words28 Pages
CASE STUDY H&M in fast fashion: continued success? Patrick Regnér and H. Emre Yildiz The case examines the role of strategic capabilities in building competitive advantage and the key issues to consider while evaluating the sustainability of competitiveness. H&M has enjoyed a leading position in the global fashion and apparel market thanks to its unique concept, business model and ability to combine elegant designs with affordable prices. That position, however, has been challenged by key competitors and H&M needs to consider this and evaluate the sustainability of competitive advantage in its strategic capabilities. The case explores the areas and functions in which H&M has enjoyed advantage vis-à-vis its competitors and how, if at all, this advantage can be sustained in the long term. ● ● ● Introduction The apparel retailer H&M had made an incredible journey from a single store established by the founder Erling Persson in Sweden in 1947 to a pioneering ‘fast-fashion’ business with 2,206 stores in 43 countries and 94,000 employees worldwide. ‘Fast fashion’ refers to a quick response to new trends and fashion items that are made available in stores immediately thereafter. By the time Persson’s 34-year-old grandson Karl-Johan Persson took over as CEO in 2009, H&M had become the global leader in the ‘fast-fashion’ segment with a distinctive business approach that challenged most competitors. The business model, commonly referred to as ‘cheap-and-chic’, emphasised high fashion at prices significantly below those of competitors, with the fundamental principle being ‘Fashion and quality at the best price’. The new CEO aimed to sustain H&M’s remarkable annual growth rate of 20% as he stated in the 2011 annual report: ‘In 2010 we stepped up our investments in order to strengthen the brand further and secure future expansion.’ H&M opened another 218 stores in that

More about H&M Case

Open Document