H & M Pest Analysis

2.0 Strategic Evaluation- Situation Analysis

In order to have sufficient data to successfully come up with a strategic choice and implementation decisions the company has to analyze its strategic position beforehand. This analysis contains several deferent steps that will be implemented during this situation analysis of H&M Company.

2.1 SWOT Analysis

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving the objective. H&M needs to track trends and developments which

PEST Analysis is a tool that helps to analyse the environment and constraints that are placed on developing and implementing an e-business strategy from outside the business. It is an acronym for Political Economical Social and Technological factors.

2.2.1 Political

The major political factors affecting H&M are restrictions on imports and exports and relocation of production facilities since the company has chain stores in different countries. There is also a restriction on shipment of goods which is a concern for H&M. Relocation of manufacturing and outsourcing continues to be a contentious issue as companies seeks to maintain profit margins and reduce costs as well as receive incentives to locate production in specific areas. There is also pressure for companies to show social responsibility.

2.2.2

Advancement in logistics capabilities allows H&M to better utilize inventories and reduce waste throughout their global supply chains. The change is driven by improved communication capabilities allowing greater and speedier diffusion of information within company.

Improvements and changes in communication technologies also open different avenues through which to communicate with its customers and suppliers. The continued popularity of blogging, hauling and other forms of social interaction between customers or potential customers can act to attract customers or build customer loyalty. It also offers more marketing channels through which H&M can communicate with customers.

3.0 E-Marketing Strategy

H&M has adopted the e-marketing strategy by using www.hm.com which helps its suppliers and customers to buy its products directly from them online. This also helps them to conduct its business to business (B2B) between H&M and their suppliers and also Business to Customer (B2C) between themselves and its customers across the world. H&M markets its products in different ways online these include web advertising, affiliates, social networks, search engine marketing, Google, emails, promotions using banners.

3.1 Types of e-Marketing strategy that H&M is planning to adopt

1. Search Engine