The house on mango street analysis essay

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the house on mango street analysis essay

Teaching, the, house on, mango, street

Technological changes can also be a threat if companies don't manage to keep up with the development. It's as important for h m as for every other company to never lean back and relax; they always have to move forward. Global changes, which will affect the markets where h m are active, can be a threat. If a country will put up regulations that will influence the import or export it can be a problem for h m since they are dependent on the trade with other nations to get the material that they need and also to send their products. H ms strategy doole and Lowe (2008) say that global companies, as h m, should use standardized marketing programmes, which will work in a lot of different nations. But at the same time they must adapt some of the operational activities to the local markets.

The, house on, mango, street, summary

Opportunities Since h ms brand name is well known all over the world they have great opportunities to expand even more and open new stores. They have used the technological development to reach out to their customers over the Internet., but sometimes people prefer to have a physical store to shop in and that's why we see an opportunity in open up new stores. H m essay has put up a growth target, which match this opportunity; they should increase the number of stores to 10-15 percent per year. Another opportunity that we see for h m is to expand their product line even more. From the beginning they were just selling womenswear, then they included clothes for men and children as well. Today they sell cosmetics and home interior as well. In the future they could start to sell other products that will attract the typical h m-customer. They already have a big online market in Sweden and a lot of other European countries, which have been a success. An opportunity will be to expand the online market in more countries and increase the sell even more. Threats Today we believe that the h ms biggest threats are the competitors like zara, mango and Gina Tricot which have the same kind of business idea - to sell fashionable clothes to a low price. It's important for h m to differentiate themselves from the competitors and be able to offer more to the customers.

For clothes that are so cheap as h ms you can't count on having the best quality. A top that costs 49 sek may have lost it's shape after a few washes. But the people who shops at h m are probably aware of this weakness and still found it profitable to buy their clothes. The small inventory, as we mentioned, as strength can also be a weakness. If a product is good very popular and there's a big demand for a specific piece of clothing the inventory will sell out before they get a new delivery. One risk with a small inventory is that it's hard to know how much to order of each product. H ms shops are always very chaotic, there are a lot of clothes everywhere and it's hard to find a structure. If you just want one specific piece of clothing you may give up before you've find it since it's hard to know where to look for. In some cases the customers will go to another store that's easier to shop.

the house on mango street analysis essay

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They have something for everyone, whether you're a woman, a man or report a child. H m are able to fill people's needs when it comes to clothes. They even have cosmetics and home interior. Weaknesses The biggest weakness that we see for h m is that their clothes aren't that exclusive. Because of the low price and their many stores many people today shop almost all their clothes at. If you buy a dress you can be sure that some of your friends will have the same one. Maybe this is one reason that people like to buy more expensive clothes from an exclusive brand, because then not everyone else front will have the same dress.

We think that using a person with a strong personal brand is a good way to compete with other budget stores and also with clothing companies that are more exclusive. Karl Lagerfeldt for h m, (m). Another big strength is the availability. H m have stores in 44 countries in the world and also a big online shop for those who don't have access to a physical store. The inventories in the stores are small which can be a strength since they don't need a warehouse at every single store. This will minimize the costs. A big strength is also their big range of products.

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the house on mango street analysis essay

The, house on, mango, street

Cost conscious, team work, belief in people, h m value to have good relationships with their suppliers in order to lower their production costs. In that way it will be possible for h m to sell business fashionable clothes to a low price to the customers. 60 percent of the goods are produced in Asia and 40 percent are produced in Europe. Even if h ms clothes are cheap, they still have a gross profit of 53 percent. They have also set up a growth target for the company to increase the number of stores by 10-15 percent per year (m, ). Andersson (2000) defines a strategy as a pattern in a stream of actions. He means that strategies and the internationalization process are dependent of entrepreneurs.

The entrepreneurs are the ones that start the internationalization for a company. We have created a swot-analysis for h m to get a good view over the company and their strategies and be able to give suggestions for their future strategies. Strengths - fashionable clothes - low price - co-operations with famous designers and celebrities - available - small inventory - something for everyone, opportunities - expansion - new product lines - online markets, weaknesses - not so exclusive - quality - small inventory - chaotic. Threats - competitors - technological changes - global changes Strengths we believe that h ms biggest strength is their business idea to sell fashionable clothes to a low price that almost everyone can afford. Since they are able to outsource the production to factories in Asia and Europe to a low price, they're able to sell the clothes to a low price as well. To make their clothes even more attractive at the markets, h m have started to use famous designers as Jimmy Choo and celebrities as Madonna to design collections for them.

Countries that are less developed face more political risks than well-developed countries. Political risks as civil disorder and riots will affect the company's profit (Doole lowe, 2008). Since h m have stores in a lot of different markets it's important to always be updated and aware of political changes in the different markets that can affect their business in a negative way. Technological, technological development will help many companies to grow and reach out to new markets. With Internet, cell phones and e-mail it's possible to use the technology in a lot of different ways to communicate all around the world with suppliers and customers (Doole lowe, 2008).

For h m the technology has been a big opportunity for them to sell their clothes online. People today tends to have less time to go shopping and finds it comfortable to be able to shop directly from their homes. To be able to make the most profitable global expansion it's important that h m are aware of these environmental influences that will affect their international marketing strategy. Business idea, h Ms business concept is easy - fashion and quality at the best price. This is what will guide the designers and managers creative process from the production to the store. They want to find a balance between fashion, quality and the best price. The individual customer is always in focus and no matter what age, taste or individual style you have you will always find something at. Additional to this they have seven core values: keep it simple. Straight forward and open-minded, constant improvement, entrepreneurial spirit.

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H m has stores in 45 different markets and they have to know the legal environment in each country so they don't break any rules. Piracy can also be a big problem in countries like india, china and Thailand were they copy the clothes and sell it for a cheaper price. This may not be such a big problem for h m since essay they're not an exclusive and expensive brand. Economic, to have knowledge about the state of the markets in the world is central for a company as h m in order to decide in which markets they can be profitable. There are constant currency changes and economic growth. Some countries have a more balanced economy than others and the challenge is to find an international marketing strategy that can be used in several markets (Doole lowe, 2008). For h m it's important to analyze the potential of the market before they expand there to see the potential of it and the purchase power. Political, political factors, as the government's attitude to business and changes in the national regulations, are a major part in the decision of the international marketing strategy.

the house on mango street analysis essay

When it comes to material culture it's important for a company like h m to be aware of which summary materials will work in which country. In Sweden many people are against fur and because of that it would be a bad idea to launch a clothing line only made of fur in Sweden. But in other countries, like china where people aren't that against fur, it could be a success. These are some social and cultural factors that will influence the customers buying behaviour (Doole lowe, 2008). Legal, the laws in the home country and in the countries that the company act in can affect the business in various ways. There can be restrictions for advertising and tariffs for export and import. The law can force companies to make changes in their marketing mix, which can affect the profit (Doole lowe, 2008).

2008). The slept-model (Doole lowe, 2008). Social/Culture, under the social and culture influences we found for example language, religion, buying behaviour and material culture. For some companies the brand name can be a problem when they go international, since differences in the language can give the brand name another meaning (Doole lowe, 2008). For h m this hasn't been a problem. But religious differences can in many ways be a problem for a clothing company like. In Sweden there's no problem for women to wear short skirts and dresses, but in countries with a strong religious view it may not be accepted for women to show their legs and dress provocative. This can also be an obstacle in h ms advertising. We think that it's important to adapt the advertising to the different countries to maximize the profit.

In 2007 the first Asian stores professional opened in Hong Kong and Shanghai. This year they also launched a new store concept called cos. To develop the store concept even more and penetrate the market, h m launched h m home in 2009. Since the start up in 1947 h m has made a big expansion at the global market, with approximately 2600 stores in 44 different markets. Today the head office is placed in the capital of Sweden, Stockholm. Here are also the main departments for design, finance, accounts, expansion, interior design, advertising, communication, hr, logistics, it and sustainability placed. The chairman of the board is Stefan Persson who is son of the founder Erling Persson (m, ). Doole and Lowe (2008) define international marketing as the company's marketing mix decisions in different nations. To get an overview of how a company's international marketing can be influenced by the environment it is a good idea to use an environmental analysis model as the slept-model.

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Print, reference this, published: writing 23rd March, 2015, the Swedish clothing company hennes mauritz, also known as hm, opened their first store in 1947 in Västerås and was founded by Erling Persson. At that time the company name was Hennes because they were only selling womenswear. During the following ten years the company opened up several stores in Sweden, and in 1964 they took their company abroad when they opened up in Norway. In 1968 the company changed their name to hennes mauritz when the selling of men's and children's clothes begun. A few years later, in 1974, the company was listed on the Stockholm Stock Exchange. Between 19s h m continued to expand in Europe. In 1998 they started selling their clothes online in Sweden, and soon in other European countries. In 2000 the first h m store opened up on Fifth avenue in New York. To differentiate h m from other cheap clothing companies they started to do collaborations with designers as Karl Lagerfeld, Stella McCartney, madonna, jimmy Choo and david Beckham.

the house on mango street analysis essay
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