Hennes & Mauritz Case Study Term Paper

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In addit9on, the company needs to rely increasingly on Geographic Information Systems (GIS) that can combine demographic data of present and potential customers in addition to economic and shopping data for a given region, in addition to present and potential locations of competitors to choose the optimal locations for their stores. Only by taking into account these many factors in defining their store locations can the company hope to alleviate price-to-price competition with Old Navy, Gap and other stores that have comparable value propositions and positioning. The case also does not mention website sales of their products, yet clearly this is a channel that needs to be developed rapidly. The launch of accessories on their website needs to happen immediately, as does the development and launch of micro-sites or smaller websites specifically for seasonal fashions in each of the nations H&M sell into. An e-commerce strategy to compliment their extensive investments into retail store locations needs to be a high priority, in conjunction with the development of more precise site location processes, systems and techniques.

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Summary and Conclusions

H&M's strategic marketing decisions need to first look to bring their most critical customer segment actively into the product development process, using the many strategies defined in this paper. Second, H&M needs to also work to solidify its pricing advantages to protect are unique value proposition from unforeseen interruptions in their supply chain or production chains. Third, the company needs to make its supply chain more demand driven and attuned to variations in demand from its retail stores. Fourth, H&M needs to become more effective at managing site location through GIS systems and demographic data, and also needs to get more focused on an electronic commerce strategy immediately to sell accessories first, and apparel, second, over its websites globally......

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