Analysis Paper, 3 pages (550 words)

Hm swot analysis

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Hennes and Mauritz, also known as H& M, is popular clothing brand from Sweden and has proved itself very popular worldwide.

Its main selling point is fashionable trends at affordable prices. They have grown very much in the past 8 years since they’ve opened up in the United States. They have proven even through a bad economy, they can do well with affordable prices. Despite these few facts about the company itself, there are many strengths, weaknesses, opportunities, and threats to the company. First I will begin with this company’s strengths.

Strengths: One of the main reasons for H& M’s popularity is because of its trendy items for such a low price. This store offers quality clothing at department store prices which is rare for many retailers today. Another strength for this company is their overall delivery time. It only takes 12 weeks to get an item from the design to its retail state which is very impressive for a worldwide, low price retailer. The average for retailers is usually about 6 months which is double the time that H; amp; M uses. They also manage to keep the stores brands fresh with guest designers coming in for different lines in the store.

Some of these have been Madonna and Robert Cavalli. They also keep the prices affordable by using very few middlemen and buy large volumes cost consciously. But with these strengths come weaknesses as well. Weaknesses: One of the strengths I mentioned earlier can also be a weakness for this company. Buying large volumes means that there is no real guarantee that all the items will be sold.

This means that they’re  already low prices may have to be lowered in order to make room for the next collection. This means that if these items are not sold in time, then the company will have to pay more for extra storage for the items not sold. Another weakness could be its wide range of customers this brand provides for. The range is for men between the ages of 18-45. This is not including the children’s clothing and maternity wear and the huge wide range of different styles they provide depending on what store you go into.

This can be difficult to manage especially in a vertical company because there is no real focus on a target customer and gets more expensive to provide machinery for all these different groups of people. But with these huge leaps there are many opportunities for this company flourish. Opportunities: One good opportunity would be for H; amp; M is to have matching clothes for mothers and children. I think this would be a good opportunity because there are also maternity wear and children’s clothes and I think that it would appeal to a larger crowd. They would like to dress their children like them in the same styles.

Threats: Since H& M is a brand that is very unique it has very few threats as far as retail chains go. One of these stores would have to be the clothing chain called ZARA. This is a store that also has fairly reasonable prices but is most famous for its rapid delivery time. It only takes two weeks for the design to make it into retail stores. Even with H& M’s time which is 50% faster than most retailers, cannot even compete with that time.

The second threat to H; amp; M is Gap just because of their quality at reasonable prices and their wide range of people they reach as well with their vertical company as well. There is a market for babies as well as men and women.

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