Indholdsfortegnelse Introduction 2 Problem statement 2 Scope/eliminations 2 Method 3 Collection of data 3 Internal analysis 3 The Value Chain 3 SMS-model 4 External analysis 4 PEST 4 Porter’s Five Forces 5 Competitor analysis 5 SWOT analysis 6 Conclusion 6 Literature 7 Enclosures 10 Enclosure 1 10

Introduction In 2009 H&M and Zara were accused of using child labour (www.ilo.org). Even though H&M is a huge company the scandal damaged the reputation of H&M and without the right recovering strategy the damages might have been fatal. Since the scandal H&M has worked towards a better image by implementing CSR and taking a clear stand towards social responsibility. We have chosen to make a
Low entry barriers and the many potential substitutes make the rivalry intense. The market may be easy to enter, however, it is difficult for new entrants to establish a well-known brand due to the intense rivalry. Therefore we have called the potential of new entrants ‘middle’. The only factors that are weak are the bargaining power of suppliers. This means that the companies have a high bargaining power towards their suppliers.

Competitor analysis | H&M (From our previous analysis) | Zara | Objectives | - Aim to be run economically, socially and environmentally sustainable. - Business concept: cheap quality fashion | - Contribute to sustainable development of society and that of the environment with which we interact (www.zara.com) | Product Summary | - Basic, Fast and Seasonal fashion- Copied designs from expensive labels | - Basic, Fast and Seasonal fashion- Copied design from expensive labels | Strategies | - Cheap quality clothing- A lot of advertisement- Outsourcing of production- Fast fashion | -Fashion for a reasonable price-Almost no advertising -Small, frequent shipments (Pahl 2009)-Catwalk to store in two weeks (Mihm 2010) | Capabilities | - Stores worldwide * - Collaborations with famous designers * - Cheap quality clothing- International brand | - Controlling their entire value chain (Pahl 2009)- International brand- Stores worldwide | Predict future moves | - Opening of new stores | - Collaborations with famous designers-