Introduction make this brief only and state the purpose of the report and how you intend

to construct your discussion/arguments (structure)

H&M is a family business that offers its products in theglobal market, and it was established by

Erling Persson as a sole store in Sweden in the year 1947 (H&M Company, 2015). The firm has

expertise in the fast fashion segment, for its mode of business approach in the market has been a

challenge to competitors, as a result, the company has become a world leading a fashion firm.

The company focuses on market satisfaction, crediting all this to the unique and low-price

commodities. More so, the company has kept on reinforcing and building on their competitive

advantage whereby tactical methods are put in place to always keep the company ahead (H&M

Company, 2015). The challenges encountered by the firm are well tackled, which has allowed it

to maintain a leading position. The company takes pride in the distinctive business model and

ability to combine both elegance and class in the designing process to achieve customer

satisfaction. However, it has been challenged by competitors, thus the company has evaluated

and consider the course of market approach. The company has been flourishing under the

competitive advantage and the advantage is sustainable for a long time (Craik, 2003).

RBV Theory and H&M’s global business readiness

You should apply RBV theory in your assessment of H&Ms global business readiness

You should be clear in your discussion as regards identifying the unique resources of the
organization, its core competences, sutainable competitive advantage,etc.. (VRIN
framework)
It is also importanct to evaluate the value chain and value system and their strategic
significance.

Be specifc as much as possible, provide data or evidences to support claims. Don’t be too
descriptive. Apply critical thinking

You can restructure your work according to requirement:

Unique Resources
Core competences and sustainable competitive advantage
Value Chain and Value System

Leadership is the ability to sway, it is how to sway a variety of people to work in a coherent

manner as to achieve an industry’s vision, objectives and mission (Weiskittel, 1999). The new

CEO, Johana Karl, has positively swayed the company in a variety of activities (H&M

Company, 2013). This influence can be defined from the alteration leadership perspective, whose

main role is to develop the person and environs within the company aspiring to attain the

company’s goals. Global readiness, does emulate all this as key elements of consideration. The

global readiness is at the at most event that occur regular at the company.

The company has grown and occupies market in forty three countries and the global expansion

has brought about an array of opportunities. However, these opportunities are challenging thus

the need to maximize on them for the multicultural issue. Market diversification is a paramount

stepping stone the company stands on. The company aims at sustaining the remarkable growth

over the year. Further investments are made to enhance the branding and secure the future the
firm aims. The company has opened store in various continents, so regular leadership evaluation

is done.

H&M has stores that are networked to a focal point the headquarters. Expatriate obligation plays

a significant role in the company’s execution of international business approaches and

advancement of global leaders. Even though the firm has a reputable international market

strategies there is always struggle on which technique to apply. The struggle comes in on who to

send and work in another culture. This practice is sensitive, for it calls for the right and talented

person for the task. The consequences are great in cases of a failure, both in monetary value and

capacity allocation strategy. This calls for global flexibility department in the firm to enhance

their processing. Under this process the company securitizes for the best fit in the position.

The overseas opportunities are intense, for the firm deploys authenticate instruments and

behavioral consultations to establish the readiness of the employee considered for an

intercontinental task. The tasks need individual consideration. This is all about the leadership

ability, to assume the mentor position to the subordinate this including the external and internal

workers, in addition to ensuring the availability of empathy and support (Howell and Avolio,

1993). H&M leadership has enacted core values like entrepreneurship spirit, which is important

in the grading of global readiness.

On the other hand, The intellectual inspiration, is the one in charge that has the ability to enact

the employee’s ideas and rectifications for assessment of the business encounters then take the

jeopardy of a variety of situations. This capability stimulates the workforce to more creative and

helpful (Bass, 1999). Consequently, H&M has grown based on ensuring space for the employees

and affiliated in the firm. This creates a working environment for the workforces, to innovate
new designs and enlargement of the company. The company asses all this when placing one in a

different work area (H&M Company, 2014).

Stimulation to the subordinate is a key value to harmonious co-existence is incentives. As a

leader to encourage the workers is a paramount skill to attain. The leader is the only person with

the power to show the employees how important they are to the company. Therefore, H&M has

designed many values that are to be attained by the leader. These values include communication

features that motivate and persuade the employees (Bono and Judge, 2003). For instance, there is

a forum for the leaders that shows many self-scrutiny opportunities leaders can use to asses.

(H&M Company, 2013).

Macro and micro level variables discuss the attractiveness of the Indian market.

You should present two sections here: PESTEL and PORTERS 5 FORCES

PESTEL is used to analyse macro level environmental variables

Remember that H&M has decided to expand on India’s market since 2015 only. So your
assessment must coincide within this timeframe as well,

Since the year 2015, the company has taken into consideration making an entry into the Indian

market. Aided by a PESTLE analysis the company has the ability to foresee the markets

behavior. The advantage helps in analyzing the whole market activities: both at pick and off pick

(Yüksel, 2012).

The Political and authorized constrains: Due to H&M’s enlargement plans, India is of great

importance because, the company has a lot of stores widely spread in Europe and China, hence
opening one in India is a great opportunity for monopoly. Additionally, a large number of

foreign distributors in the country has factories and the fact that H&M has no factories and

mainly depends on the distributors to make their own products, this brought about a sense of

self-reliance (Thomachot and Student, 2008). Accordingly, as a global firm, H&M has fully

taken into consideration every states regulations before the venture takes place. The laws of India

on import and export factors are favorable and could not affect the profit margin, the goods cost

and other fiscal aspects. Moreover, there are local regulations which pertained problems like

wage laws, child labor and well-being standards (Mazzarol et al., 1999).

The Economic facets: For the last decade, H&M has been highly affected by the worldwide

inflation, such as the cost of cotton in Pakistan, which is biggest cotton producer in the world.

Due to this inflation, the firm encounters a steadily increasing production cost, thus distorting the

profit margins and eventually jeopardizing the potential profit in the company (Khan and Khan,

2010). The advantage of the Indian market is that the accessing of the cotton is easier for its

neighbor is Pakistan. Another issue that the company encounters is the increase in the global

trend that seem to claim an increase in the employees’ wages. Fortunately, in India the trends are

often not activated. This makes the market rigid enough to sustain the company. (Konings and

Murphy, 2006). Otherwise, in 2008 global recession, it has actively influenced the customer’s

expenditure patterns, so, the global companies have to reduce the production of goods and

services price to accommodate the ever decreasing consumers’ expenditure (H&M Company,

2008).

The Culture and social aspects: Generally, the firms that bank on fashion always are driven by

the need to the customers’ needs by producing current and fashionable products. Though, at the

same moment and time, these goods should suits the customer’s sense of style (Craik, 2003).
H&M as a global firm should contemplate the different cultures and states assume different

fashion sense. In India, the consumers, market is well defined. The culture is literary one, in that

the traditional attires are bought more that any other clothe type, whereas in Europe they prefer

the fast design. (Rocha et al., 2005). Consequently, the international sartorial retail firms often

bank on partnership relations with local designers all over the globe, especially in India, to

produce attires depending on the culture. Else, making environmentally and under the

instructions of the ethical rules represent the main con any global-wide company encounter.

(Banerjee, 2008).

Technological aspects of India: In the last few decades, the technology has rapidly grown, the

consumers become well conversant about their buying choices through the communication

utilities, like the mass media. Likewise, online buying through the sites and the mobile

applications has developed a major way purchasing goods (Wang, 2010). Thereof, international

corporations in the fashion arena have tremendously invested in the information and

communication technologies that meets the consumers’ needs. (Petrick and Simpson, 2013).

India has a high population the use of social media assure the expansion of the market.

Environmental friendlies: In India, the customers are more aware about the environmental issues

for the last several years. Hence, consumers’ purchasing choice are strongly influenced by the

environmental conditions (Young et al., 2010). Thus, almost all the global-wide, companies has

entirely focused on adaptation of a sustainable strategy to occur in the firm’s operations in the

right mood (Dao et al., 2011). Fortunately the market has proven to have all this essentials.

Entry strategy of H&M into India’s market

Based on your analysis (above), criticially analyse the entry strategy of H&M into India’s
market.
focus on the ,market entry strategy that the company adapted to enter the Indian Market.
Describe what the strategy is, why it was selected by the company, how it will help the
company to establish its business positioning in the country, any advantages or
disadvantages.. Provide also some examples of companies that adapted this strategy in the
said market…

The entry to the Indian market was a major leap to the company. The company required a robust

and well outlined ways to handle the market and the competitor to their advantage. Based on

SWOT as an analytical tool, the firm could handle any new market (H&M, 2018). Market entry,

is a concept that has been approached differently by the management of various firms. Moreover,

this is the degree of synthesized and linkage in a new environs of business (Hill &Brown, 2007).

This analysis exposed the slots by which the firm could expound on and be integrated in the

market (Valentin, 2001).

After the analysis, the market domains could vary from the advantage strategic coalitions to

positioning tactics, which deals with the moods of the consumer. In India there are an array

market entries (Shama, 1995).The import and export venture, actually, this is what H&M firm

banks on for profit. The advantage of this market entry is that e firm is exposed to few risk

chances. The degree of financial risks are minimal and there is an extension in the market range.

(H&M, 2018).

The company saw it wise to collaborate with the native in various activities. This involved

affiliating with the local companies in various processes. This is very suitable for large and

global wide which want to expand throughout the country. This aided the accessioning of raw
material sources and the market opportunities. This assisted a lot in the captivation of the market.

Demand, were well suited as a result of these (Shama, 1995).

The company took the advantage of contracting, this is a form of agreement that expires in due

time. The company has contracted with a variety of companies, for the betterment of the

company. The company used this to attain the knowledge of the locals and their views in a

variety of productions. Advantage if this strategy is that it accelerates the speeds of the

synthesizing of the company in the local market (H&M. 2018).

The firm has enabled the other companies as consortia. The strategy has proven to be to be more

fruitful. In the strategy the company utilizes the participation of the local competitor. Solely, the

company has an outstanding reputation in assisting formulation and enactment of market

overtaking. The consortia has merged resources, hence reducing the chances of risk as compared

to an individual company.

Implicitly, Hunnes & Mauritiz Company has attained its success in the multinational fashion

industry via recruiting its global readiness and maintaining business vision and objectives. By

lowering the priced and increasing the quality. Moreover, utilizing the standardized shipping fee

in India. The expansion rate is acknowledgeable for the returns are exceedingly high.

Additionally, the companies’ strategies are sustainable.

Conclusion?? Brief only

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Bono, J.E. and Judge, T.A. (2003). Self-concordance at work: Toward understanding the

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Chapman, C.S. (2005). Controlling strategy: Management, accounting, and performance

measurement. Oxford University Press.

Craik, J. (2003). The face of fashion: Cultural studies in fashion. Routledge.

Dao, V., Langella, I. and Carbo, J., 2011. From green to sustainability: Information Technology

and an integrated sustainability framework. The Journal of Strategic Information Systems,

Ding, H. (2011). The importance of strategic management: A case study of H&M.

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H&M Company. (2015) Annual Report 2015. [Online]. Available at:

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