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Introduction

H&M is a family business that covers the worldwide market. The company was

established, by Erling Persson as a sole store in Sweden in the year 1947. The firm has an

outstanding journey in the fast fashion business. The firm has expertise in the fast fashion

segment, for the mode of business approach in market has been a challenge to the competitors.

H&M is the world’s leading a fashion firm. The company has an incessant in the market

satisfaction. Crediting all this to the unique and low-price commodities. More so, the company

has kept on reinforcing and building on their competitive advantage. Tactical methods are put in

place to always keep the company ahead (H&M Company, 2015). The company’s position has

turned out to be puzzling. Though the challenges encountered by the firm are well tackled hence,

maintaining the leading position. The company takes pride in the distinctive business model and

ability to combine both elegance and class in the designing. However, it has been challenged by

the key competitor, thus the company has evaluated and consider the course of market approach.

The company has been flourishing under the competitive advantage. In addition, the advantage is

a sustainable in a very long time (Craik, 2003).

H&M’s global readiness

Leadership is the talent of sway, it is how to sway a variety of people to work in a

coherent manner as to achieve an industry’s vision, objectives and mission (Weiskittel, 1999).

Eminently, the new CEO, Johana Karl, has positively swayed the company in a variety of

activities (H&M Company, 2013). This influence can be defined from the alteration leadership

perspective, which basically main role is to develop the person and environs within the company
aspiring to attain the company’s goals. Global readiness, does emulate all this as key elements of

consideration. The global readiness is at the at most event that occur regular at the company.

Tremendously, the company has grown and occupies market in forty three countries. The

global expansion has brought about an array of opportunities. Although, these opportunities are

challenging to maximize on them for the multicultural issue. Market diversification is a

paramount stepping stone the company stands on. The company aims at sustaining the

remarkable growth over the year. Further investments are made to enhance the branding and

secure the future the firm aims. The company has opened store in various continents, so regular

leadership evaluation is done.

H&M has stores that are networked to a focal point the headquarters. Expatriate

obligation plays a significant role in the company’s execution of international business

approaches and advancement of global leaders. Even though the firm has a reputable

international market strategies there is always struggle on which technique to apply. The struggle

comes in on who to send and work in another culture. This practice is sensitive, for it calls for

the right and talented person for the task. The consequences are great in cases of a failure, both in

monetary value and capacity allocation strategy. This calls for global flexibility department in

the firm to enhance their processing. Under this process the company securitizes for the best fit

in the position.

The overseas opportunities are intense, for the firm deploys authenticate instruments and

behavioral consultations to establish the readiness of the employee considered for an

intercontinental task. The tasks needs individual consideration. This is all about the leadership

ability, to assume the mentor position to the subordinate this including the external and internal

workers. More so, ensuring the availability of empathy and support (Howell and Avolio, 1993).
That’s said, H&M leadership has enacted core values like entrepreneurship spirit, which is

important in the grading of global readiness.

The intellectual inspiration, it is the one in charge that has the ability to enact the

employee’s ideas and rectifications for assessment of the business encounters then take the

jeopardy of a variety of situations. This capability stimulates the workforce to more creative and

helpful (Bass, 1999). Consequently, H&M has grown based on ensuring space for the employees

and affiliated in the firm. This creates a working environment for the workforces, to innovate

new designs and enlargement of the company. The company asses all this when placing one in a

different work area (H&M Company, 2014).

Stimulation to the subordinate. The key value to harmonious co-existence is incentives.

As a leader to encourage the workers is a paramount skill to attain. The leader is the only person

with the power to show the employees how important they are to the company. Therefore, H&M

has designed many values that are to be attained by the leader. These values include

communication features that motivate and persuade the employees (Bono and Judge, 2003). For

instance, there is a forum for the leaders that shows many self-scrutiny opportunities leaders can

use to asses. (H&M Company, 2013).

Macro and micro level variables discuss the attractiveness of the Indian market.

Since the year 2015, the company has taken into consideration about the India’s market.

Aided by PESTLE the company has the ability to foresee the markets behavior. The advantage

helps in analyzing the whole market activities: both at pick and off pick (Yüksel, 2012).

The Political and authorized constrains. Due to H&M enlargement plans, India is of great

importance. Firstly, the company has allot of stores widely spread in Europe and China, so
opening one in Asia was a great opportunity for monopoly. Then, a large number of foreign

distributors in the country had factories and is known that H&M has no factories mainly depends

on the distributors to make their own products, this brought about a sense of self-reliance

(Thomachot and Student, 2008). Accordingly, as a global firm, H&M has fully take into

consideration every states regulations before the venture takes place. Practically, the laws of

India on import and export laws were favorable and could not affect the profit margin, the goods

cost and other fiscal aspects. Moreover, the local regulations which pertained problems like wage

laws, child labor and well-being standards (Mazzarol et al., 1999).

The Economic facets. For the last decade, H&M has been highly affected by the

worldwide inflation. The cost of cotton in Pakistan, which is biggest cotton producer in the

world. Due to this inflation, the firm encounters a steadily increasing production cost, thus

distorting the profit margins and eventually jeopardizing the potential profit in the company.

(Khan, A and Khan, M, 2010). The advantage of the Indian market is that the accessing of the

cotton was easier for its neighbor is Pakistan. Another issue that the company encounter, is the

increase in the global trend that seem to claim an increase in the employees’ wages. Fortunately,

in India the trends are often not activated. This makes the market rigid enough to sustain the

company. (Konings and Murphy, 2006). Otherwise, in 2008 global recession, it has actively

influenced the customer’s expenditure patterns, so, the global companies have to reduce the

production of goods and services price to accommodate the ever decreasing consumers’

expenditure (H&M Company, 2008).

The Culture and social aspects. Generally, the firms that bank on fashion always are

driven by the need to the customers’ needs by producing current and fashionable products.

Though, at the same moment and time, these goods should suits the customer’s sense of style
(Craik, 2003). H&M as a global firm should contemplate the different cultures and states assume

different fashion sense. In India, the consumers, market is well defined. The culture is literary

one, in that the traditional attires are bought more that any other clothe type, whereas in Europe

they prefer the fast design. (Rocha et al., 2005). Consequently, the international sartorial retail

firms often bank on partnership relations with local designers all over the globe, especially in

India, to produce attires depending on the culture. Else, making environmentally and under the

instructions of the ethical rules represent the main con any global-wide company encounter.

(Banerjee, 2008).

Technological aspects of India. In the last few decades, the technology has rapidly

grown, the consumers become well conversant about their buying choices through the

communication utilities, like the mass media. Likewise, online buying through the sites and the

mobile applications has developed a major way purchasing goods (Wang, 2010). Thereof,

international corporations in the fashion arena have tremendously invested in the information and

communication technologies that meets the consumers’ needs. (Petrick and Simpson, 2013).

India has a high population the use of social media assure the expansion of the market.

Environmental friendlies. In India, the customers are more aware about the

environmental issues for the last several years. Hence, consumers’ purchasing choice are

strongly influenced by the environmental conditions (Young et al., 2010). Thus, almost all the

global-wide, companies has entirely focused on adaptation of a sustainable strategy to occur in

the firm’s operations in the right mood (Dao et al., 2011). Fortunately the market has proven to

have all this essentials.

Entry strategy of H&M into India’s market


The entry to the Indian market was a major leap to the company. The company required a

robust and well outlined ways to handle the market and the competitor to their advantage. SWOT

analytical tool, the firm could handle any new market (H&M.2018).

Market entry, is a concept that has been approached differently by the management of various

firms. Moreover, this is the degree of synthesized and linkage in a new environs of business (Hill

&Brown, 2007). This analysis exposed the slots by which the firm could expound on and be

integrated in the market (Valentin, 2001).

After the analysis, the market domains could vary from the advantage strategic coalitions

to positioning tactics, which deals with the moods of the consumer. In India there are an array

market entries (Shama, 1995).

The import and export venture, actually, this is what H&M firm banks on for profit. The

advantage of this market entry is that e firm is exposed to few risk chances. The degree of

financial risks are minimal and there is an extension in the market range. (H&M, 2018).

The company saw it wise to collaborate with the native in various activities. This involved

affiliating with the local companies in various processes. This is very suitable for large and

global wide which want to expand throughout the country. This aided the accessioning of raw

material sources and the market opportunities. This assisted a lot in the captivation of the market.

Demand, were well suited as a result of these (Shama, 1995).

The company took the advantage of contracting, this is a form of agreement that expires

in due time. The company has contracted with a variety of companies, for the betterment of the

company. The company used this to attain the knowledge of the locals and their views in a
variety of productions. Advantage if this strategy is that it accelerates the speeds of the

synthesizing of the company in the local market (H&M. 2018).

The firm has enabled the other companies as consortia. The strategy has proven to be to

be more fruitful. In the strategy the company utilizes the participation of the local competitor.

Solely, the company has an outstanding reputation in assisting formulation and enactment of

market overtaking. The consortia has merged resources, hence reducing the chances of risk as

compared to an individual company.

Implicitly, Hunnes & Mauritiz Company has attained its success in the multinational

fashion industry via recruiting its global readiness and maintaining business vision and

objectives. By lowering the priced and increasing the quality. Moreover, utilizing the

standardized shipping fee in India. The expansion rate is acknowledgeable for the returns are

exceedingly high. Additionally, the companies’ strategies are sustainable.


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