By conducting a situational analysis on an organisation, it not only highlights advantages and disadvantages of how the business currently operates but it identifies budding opportunities and potential threats that could be contained. There are several factors both internal and external that can influence a brands performance that must be considered with the purpose of fully executing a situational analysis. As the name suggests, a situational analysis is a mere snapshot of how a company is positioned in the marketplace at that moment of analysis which can therefore pose a disadvantage to very large organisations due to their fast-paced business environments. It is crucial that a situational analysis is performed regularly for an organisation to remain innovative and of course, profitable by “choosing marketing strategies that will help the company attain its overall strategic objectives” (Kotler 2021).  

 Although considered as one of the biggest players in the fast fashion industry, H&M shows its strengths in supporting the element of sustainability in the PESTLE analysis tool and poses clarity wherever it can, opposing the concept of green washing. They gain trust and credibility from their consumers, shareholders, and investors by publishing their acts of sustainability (Mintell, 2021) via their official website giving them a competitive advantage against similar apparel companies. Since 2013, H&M has been accepting donations for unwanted clothes and textiles in there “Close The Loop” (H&M, 2020) campaign leaving customers not only de-cluttered but with a voucher incentive to spend online or instore too! 

 In considering the current economic climate of the UK, many people are left with little disposable income making luxury items such as clothing, of low priority. As an opportunity for H&M whilst supporting both environmental and economic factors, the fast fashion giant should look to launch their second-hand clothing concept, RE: WEAR, internationally rather than continuing operations in Canada alone. H&M must set the launch in motion promptly for worldwide access of RE:WEAR as competitive rivalry could intensify due to one of their biggest opponents, Zara, recently introducing Zara Pre Loved which does operate in the UK. 

As a strength, H&M often replicates styles as seen on major, high-end fashion runways making looks curated by the likes of Chanel, Prada, Bottega Veneta and many more, largely accessible to those who have a passion for fashion without breaking the bank. H&M should continue to imitate high end trends at a lower cost to lessen the threat of substitutes to which customers may turn to if H&M fails to supply on trend designer ‘dupes’. On the flip side of this, H&M shows lack of innovation to develop new ideas and trends of their own and instead relies significantly on other designer’s ideas which could inevitably lead to the threat of legal complications with regards to copyright infringements.  

H&M boasts great online presence through their regular social media posts and promoting of their products.  They recently created the viral Instagram hashtag- #HMxMe, which allows H&M enthusiasts to share their outfits or hauls to their followers. This method of promoting a brand benefits both the hashtag sharers in that it boosts their online presence and the organisation as those who see the Instagram users posts may be likely to want to purchase the garments or beauty products shared. 

It is essential for businesses to observe the dynamic technological environment to keep up with not only customer needs but competitors too. H&M demonstrates this by their AI system on the Instagram feature- direct message. Speaking from my own experience, I contacted H&M through this method and received a very speedy yet thorough answer to my question. H&M should seek to continue and build on such media technology in order to meet the regularly developing demands of consumers. As a benefit, H&M is seen to dominate over its competitors through their media technology methods. Expanding on this, I sent the same direct message to ZARA- one of H&M’s greatest rivalries, at the same date and time and was found with no response. 

In summary of my situational analysis of H&M, the brand flourishes in their advantages over competitors for example their openness on the topic of sustainability and dynamic technological speed, nevertheless, H&M mustn’t slacken as they may find rivalry brands towering over them due to the fast-paced market that is the fashion industry. 


Reference List

·         Kotler P., Armstrong, G. (2021) Principles of Marketing, Eighteenth Edition. London. Pearson Education Limited. 

·         H&M, (2020), https://www2.hm.com/en_gb/sustainability-at-hm/our-work/close-the-loop.html, 11/05/23

·         Mintell, 2021. H&M launches ‘Circulator’ to help promote circular fashion. 

 

- The video is really well put together. The colour scheme matches the company brand image Aswell as the constant reappearance of the brands logo, making it very easy for the viewer to understand the brand you are talking about in your video.

- Many references are included throughout the transcript allowing the viewer to do further in-depth research if they wish to.

- Easy to follow through with good animations for the text and images allowing the video to appear really fluent throughout.

- Could include some more text on screen for definitions however, there are plenty of titles to allow the viewer to understand what the topic of each slide is and help follow along easily.

Infographics:

- The infographics include many references throughout to back up each point made.

- It is clearly linked to the brand you have selected with many links between the question and the brand you are studying.

- The theme is constant to the video as well as linking well to the theme of the brand image which makes it really easy to follow as a viewer.

- Many images are included which link to each aspect of the question you are discussing at each part.

- Some text appear quite small could potentially spread across more pages to allow more space to allow some text to be larger however, it is still neatly organised and clear to read.