Art of War and Marketing Class Exercise 3

SWOTStrengths:

1. Brand recognition: low price and rapid changing styles.

2. High profile advertising and collaboration with designers.

3. Operational efficiency: A strong control of the whole logistics process helps H&M achieve low costs, while low inventory contributes to maintain margins.

Weaknesses:

1. Reliance on outsourcing puts H&M at greater risks of damaging its reputation in terms of product quality and poor labour conditions in developed countries.

2. Modest presence in emerging markets: Despite being a global player present in 33 markets, H&M has developed its presence in Europe and North America mostly.

Opportunities:

1. Untapped potential in emerging markets.

2. Internet retailing its core demographic target, teenagers and young adults, whose purchases are often influenced by the internet.

Threats:

1. Hypermarkets and mass merchandisers including Carrefour, Target, Tesco and Wal-Mart are set to continue developing their offer of non-food products and compete directly against H&M in the value segment of clothing and footwear retailing.

2. Fast fashion becoming more competitive: H&M faces a growing threat from a number of direct competitors with increasingly global ambitions at the low-priced end of the market such as Associated British Foods with Primark, Fast Retailing with UNIQLO and Marks & Spencer, alongside a resurgent Gap.

Unique selling points of H&M

• Young people do not study label carefully to take care of their clothes.

• Style rather than quality is the main concern.• Fast fashioning and style is the trend.

造勢

• 聘請McDonna為代言人• 於沿線地鐵站賣廣告• 於中環旗艦店外設海報• Discount and promotion