The importance of swot analysis in large industries.

1. Abstract
Hennes& Mauritz(H&M) is a 100 billionSwedencompany,engagedindesigningandretailingof fashion
apparel andaccessories.The companyoffersarange of apparel,cosmetics,footwearandaccessoriesfor
men,women,childrenandteenagers.H&MprimarilyoperatesinEurope,NorthAmericaandAsia,and
has a presence inover38 countries.The companyisheadquarteredinStockholm,Swedenandemploys
approximately87,000 people ona full-time basis.
Thisthesisfocusedonthe strategicmanagementof H&Mcompany.The mainresearchproblemwasto
make an in-depthanalysisof itsmarketingstrategyandhow toimplementit.The mainresearchmethod
was a qualitative researchbyanalyzingtheircompanydata,annual reportsandmakinginterviewswith
the manager,staffsandcustomersinKuopioshop.
The thesisstartswitha general introductionandsome backgroundinformationof thisthesiswork.In
the theoretical part,itdescribedthe definition,process,benefitandchallenge of strategicmanagement.
In the practical part, an exhaustiveanalysisonthe company’sstrengths,weakness,opportunitiesand
threatswas made byusingthe detailedfigures.
The resultshowsa clearimage of the processof strategicmanagementbyH&Mcase. Some
recommendationsmade forH&Mhelptoimprove theirsustainable developmentsandsupporta vivid
example formanycompanies.
KeywordsH&M,Strategicmanagement,Marketing,SWOTanalysis

2. IMPORTANCE OF SWOT ANALYSIS IN STRATEGIC MANAGEMENT
“Withouta strategy,an organizationislike ashipwithoutarudder,goingaroundincircles.It’slike a
tramp: ithas no place to go.” Joel Ross& Michael Kami (Fred2011,35)
The set of managerial decisionsandactionsthatdeterminesthe longtermperformance of acorporation
isknownas strategicmanagement.Inthistopicsamanager emphasizesthe analyzingandevaluatingof
external opportunitiesandthreatsintermsof strengthsandweaknessesof anH&M.
SWOT ANALYSIS of H&M
Here we wouldlike tostudythe Strengths,Weaknesses,OpportunitiesandThreatsof H&M.
STRENGTHS
Strengthsrepresentsthe strongpositionof acompanybecause itisan internal factorthat’sdefines
whatis the company’simage inthe market,andwhat isthe competitive advantage of acompanyin
termsof pricingof productsand services. However,the strengthsof H&Mclearlyshowingthe well
trainingof staffsinorderto facilitate all the agesfromchildrentooldage people. Theirone more step
towardsthe strengthisthe segmentationof outlets anddepartmentsspecificforwomen,men,
teenagersandchildren.
WEAKNESS
Weaknessisalsothe internal factorof everycompany. Distribution channels,low qualityfinishedgoods
and limitedsupplierswouldgive abiggestnegative impacttomanufacturing businessesandcome up
withtheirstrongweaknesses.Precisely,H&Mhavingsame issuesintheirdistributionstructure,people
were notgettingH&M productsonseasonal arrival.Butno. of suppliersof H&Mhelpingthemtocontrol
the demandof theirconsumers.AsH&M addsup 2700 productionunit tomaintainitseffective
organizationstructure.If theycannotmaintainso thismayleadto failure of control.

3. OPPORTUNITIES
It isthe external factorof SWOTanalysisthatexternallyfocusedonthe trends andtechnologies.This
was the biggestopportunitiesforH&M to digitallypromote itself bysellingitsproductsonline.In2011
H&M start sellingonline andafterthe success of online store of H&Mtheygloballyintroducedtheir
servicesspeciallyinAsiacontinentand Simultaneously theystartvariousoperationsglobally.
THREATS
Threats comeswhennewentrants come andcompetitionhigh.Inthe same waywhenthe marketisfull
of competitorsbecause everyone startsitsonlinesellingaswell asspread operationsglobally.Forthat
reason,H&M spenthuge amountof budgetinitsR&D departmentinordertokeepupdatedregarding
the newtrends,concepts,fashionandtechnological advancements.