BADM 27 – STRATEGIC MANAGEMENT

Cavite State University

Trece Martires City Campus

Name:____________________________________________ Score:________________

Year & Section:____________________________________ Date:_________________

H&M, or Hennes & Mauritz, is a Swedish multinational clothing retail company founded in 1947 by
Erling Persson. At first, It started as a women’s clothing store called “hennes” which means hers in Swedish,
but in 1968, it merged with Mauritz Widforss, a hunting equipment retailer, and expanded its offerings to
include men’s clothing. Over time, H&M evolved into one of the largest fashion retailers globally, known for its
affordable, trendy clothing for men, women, and children. The company also carries home goods through its
H&M Home division.

H&M is known for its fast-fashion model, quickly producing new trends and making them available to
customers at low prices. They are also increasingly focusing on sustainability, with initiatives aimed at reducing
their environmental impact and promoting ethical practices within their supply chain. Today, H&M operates stores
in many countries worldwide and has a significant online presence.

H&M’s supply chain is complex, and their items may pass through multiple vendors on their way from
raw materials to final product. They, like the majority of apparel brands, do not own factories. Instead, deal with
independent manufacturers. In addition, H&M’s labour standards include a zero-tolerance policy for forced and
child work, which requires suppliers to follow stringent anti-forced and anti-child labour rules. They also
emphasise fair salaries, working conditions, and employee rights such as respect, decency, and
nondiscrimination.

H&M’s business idea is fashion and quality at the best price, which means that the extensive choice of
products in its stores cater not only to high-net-worth individuals, but also to a larger demographic that wants
the newest in fashion at a reasonable price. In addition, H&M aims to strengthen its core business and improve
customer offerings while focussing on cost efficiency. Despite challenging macroeconomic conditions and
geopolitical uncertainty, the company sees positive signs in inflation and falling interest rates.

H&M generally targets a young, fashion-conscious, and price-sensitive demographic, which includes
teenagers and young adults in their twenties, with a sizable proportion of urban inhabitants and middle-class
persons. H&M also adjusting to changing consumer expectations by growing beyond its apparel name, focussing
on affordable and appealing fashion, improving the overall shopping experience both online and in-store, and
addressing sustainability concerns.

H&M, a global fashion giant, has adopted artificial intelligence (AI) as a revolutionary tool for addressing
challenging challenges and driving success. From improving consumer experiences with virtual fitting rooms to
optimising supply chains with AI-driven insights, H&M’s strategic use of AI underscores the company’s dedication
to innovation and sustainability. H&M also established a new Tech Centre dedicated only to handling cyber
security for all brands and majority investments. Within this Cyber Security Tech Centre, there is a unit dedicated
to Cyber Security Architecture & Engineering, with the mission of protecting customers, colleagues, and the
company by establishing and managing safe and secure technology use while also paving the way forward for
Cyber Security Architecture. This is an exceptional chance to head the Cyber Security Architecture team, driving
delivery and service portfolios throughout the whole H&M Group and all brands.
 REFERENCES:

Let’s be fair | Safe, just and equal fashion | H&M. (n.d.). H&M.
https://www2.hm.com/en_asia3/sustainability-at-hm/our-work/fair.html

H&M Group. (2024, December 20). Supply chain – H&M Group.

Arceo-Dumlao, T. (2014, October 20). Sweden’s H&M now in PH | Inquirer Business. INQUIRER.net.
https://business.inquirer.net/180563/swedens-hm-now-in-ph

Swedish Tannery Association. (2025, February 7). H&M reports fourth quarter and full year results. World
Footwear. https://www.worldfootwear.com/news/hm-reports-fourth-quarter-and-full-year-
results/10442.html#:~:text=%E2%80%9CAs%20we%20look%20ahead%20to,inflation%20and%20falling%20i
nterest%20rates.

Team, C. (2024, December 18). The competitive landscape of H&M. CANVAS, SWOT, PESTEL & BCG
Matrix Editable Templates for Startups. https://canvasbusinessmodel.com/blogs/competitors/h-and-m-
competitive-
landscape#:~:text=From%20online%20shopping%20to%20virtual,however%20and%20whenever%20they%2
0prefer.

Team, C. (2024a, December 18). Customer demographics and target market of H&M. CANVAS, SWOT,
PESTEL & BCG Matrix Editable Templates for Startups. https://canvasbusinessmodel.com/blogs/target-
market/h-and-m-target-market#:~:text=Introduction%20to%20H&M’s%20Customer%20Demographics,-
Understanding%20the%20customer&text=Let’s%20delve%20into%20the%20key,and%20promote%20fair%20
labor%20practices.

DigitalDefynd, T. (2024, November 28). 5 ways H&M is using AI [Case Study] [2025] – DigitalDefynd.
DigitalDefynd. https://digitaldefynd.com/IQ/hm-using-ai-case-
study/#:~:text=H&M’s%20implementation%20of%20AI%2Ddriven,regarding%20production%20and%20invent
ory%20allocation.

H&M careers. (n.d.). H&M Careers. https://career.hm.com/job/913e056b-e53c-4cad-97e0-