Internal Analysis of H&M

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3 Internal Analysis 3.1 Business strategy of H&M 3.1.1 The Best Price Strategy H&M aims to give the customer unbeatable value by offering fashion at the best price. It has been developing the Best Price Strategy. It maintains the best price by limiting the number of middlemen, buying in large volumes ,relying on our in-depth, extensive expertise within the design, fashion, and textile industries, buying the right merchandise from the right production markets, being cost-conscious at all levels and having efficient distribution systems. 3.1.2 Main Collection & Sub-Collection The buying function focuses on customers, fashion and composition of the range. H&M‘s clothing collections are created in Sweden by around 100 internal designers, 50 pattern designers and around 100 buyers. It operates with two main collections per year, one in spring and one in autumn. Within each season, however, there are a number of sub-collections so that customers can always find new goods in stores. The aim of the company is to find the optimal time to order each item. 3.1.3 Fashion For Everyone H&M offers a wide range of fashion using many different concepts, from updated classics and basics to clothes that reflect the very latest international trends. In addition, they sell clothes, accessories and cosmetics. The wearing range consists of everyday clothes to party wear. To make things clearer for the customers, it has divided up a range into a number of different concepts for women, men, teenagers and children. The clothes also have high fashion content within each collection, so that customers can easily combine different garments and find their own personal style. 3.1.4 The Best Location Strategy The Best business location has been a firm principle of H&M. The H&M store is now a well-established presence in most prominent shopping streets with considerable customer flows

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