HENNES & MAURITZ

Hennes & Mauritz

Hennes & Mauritz Case Study

Introduction

Hennes and Mauritz (H&M) is a $100 billion company that is engaged in designing and retailing of fashion apparel and accessories. The company offers a wide range of apparels, footwear and accessories. The company has products for men, women, children and teenagers. Regions in which H&M operates are North America, Asia and Europe. The company is present in 33 countries, and the headquarters of the company is in Stockholm, Sweden. The employees of the company are around 53,430. The company has been in a favourable position since it was established and people who are associated with this company are happy with the relations it has with the company. This paper will discuss the impact of the global crisis on the company and will also discuss how the company has made sure that it is not impacted by the crisis and to what extent has its strategy worked in stringent conditions (Ulrich, 2000, 57).

The Global Crisis

The world was hit by the financial and economic crisis which impacted each and every country in the world. People who were impacted by the crisis were losing their investments, and companies were suffering losses. People who were doing business in this environment were worried because they could not find a way that would have helped their business to flourish. There was no way in which the company was able to cope with the situation and all the businesses were in a terrible shape.

The company H&M, when faced with the situation of global crisis, was able to cope with the situation because of the policies that the company had formulated. The company was doing a terrific job when it had to face this situation because people were not in a position to ensure profitability of their business. Even in such a situation, the company H&M made sure that it maintained its position and helped the company in ensuring that the company is on the right path. The company was able to sustain its position in the market because of several factors; however, the most crucial factor was the strategies that the company had formulated. These strategies were smart which helped the company in maintaining its position and in also ensuring that the company does not suffer losses (Martell, 1996, 19).

The Company's Strategies

The company had undertaken strategies that were very helpful for the company. These strategies included the following:

1. Price - the company made sure that it priced its products in such a way that no other company could match. The company was able to do this because the company was able to reduce its cost of middlemen. This was the major way the company ensured low price and offered products at a much low cost than the other companies.

2. Design - products of the company were designed in such a way that made it attractive, because of which people bought products of H&M more and more. This made the company earn a lot of revenue and the other companies ...