Hennes & Mauritz in 2005: Managing Global Expansion


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Case Details:

Case Code : BSTA133
Case Length : 16 Pages
Period : 1980-2005
Organization : Hennes & Mauritz
Pub Date : 2005
Teaching Note :Not Available
Countries : Europe, US
Industry : Fashion

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Globalization

H&M's strategy of entering new geographical markets had not been predetermined. For example, in 1979, when Stefan was in France to finalize H&M's entry into France, he came to know that a British fashion retailer was planning to open a store opposite H&M's store in Geneva...

H&M in the US

H&M decided to enter the US, its first market outside Europe in 1999. To arouse customer curiosity it launched teaser advertisements in December 1999. This was followed by an aggressive media campaign in March 2000, which concentrated more on print and outdoors, and less on radio and television...

Looking Ahead

Persson's goal was to enter a new country every two years. In 2005, the retailer was entering Portugal. Italy and Canada. Eastern European nations were the next target. H&M planned to add about 150 new stores in 2005 with a focus on Germany, its largest market...

Exhibits

Exhibit 1: H&M Store in Berlin
Exhibit 2: Number of stores in Sweden and outside Sweden (1990-1991 to 2001-2002)
Exhibit 3: H&M in US (2000-2003)
Exhibit 4: H&M Sales per Geographic Area (2003)
Exhibit 5: Comparison of Select H&M Markets (2001-2003)
Exhibit 6: Sales Per Market
Exhibit 7: Five year Financials
Exhibit 8: Financial Highlights

 

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