H&M Hennes & Mauritz AB

SWOT
Strength
1. They have 3,132 stores in more than 54 markets worldwide
2. High market share (The worlds No. 2 fashion retailer)
3. Strong brand name
4. One of the worlds largest fashion retailers
5. H&M employs around 116,000 employees in over 54 different countries
worldwide.
The average number of employees in the Group, converted into full-time
positions, was 81, 099 (72,276), of which 6,868 (6,220) are employed in Sweden.
6. Experienced fashion design team ( H & M comprises six independent brands:
H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories)
7. Providing quality and fashion at affordable prices
http://blogs.wsj.com/moneybeat/2014/06/18/zoopla-hm-alstom-siemens-are-europesstocks-in-focus/
Weakness
1. Mass production ( Lack of uniqueness)
2. Product recall eg. Plastic belt
https://www.hm.com/hk/en/customer-service/recalled-items
3. Less online market (Shop online is available in 12 markets only)
http://about.hm.com/en/About/facts-about-hm/about-hm/expansionstrategy.html#cm-menu
Opportunity
1. New technology: Apps, online shop
2. Concern of sustainable development (H&M is the worlds largest consumer of
organic cotton)
3. More CSR conscious society
4. Growth in Asian markets, particularly in China
Threat
1. Competitive market eg.Uniqlo, Zara, Gap, Cutton on
2. Climate change (Goods are delivered to stores on the basis of normal weather
patterns. Major deviations from normal conditions may affect sales. The effect
will be greatest if there are major deviations at the beginning of a season.)
3. Minimum wage increase salary cost
4. The risk of foreign currency (Expanding globally introduces the risk of a
devaluation of a currency. Eg. Exchange rate)