Key partners
Key partners in the business include the list of partners that the company cannot do without while reaching the business objective and considering profit for the business. These partners help in focusing on key activities and ensure key resources to be used in the business. The key partners of H&M are outsourced manufacturers, top designers and franchise partners. Unicef, Care, WaterAid, Save the Children, Kiron, HKRITA, Practical Action, etc
Key activities: The business performance includes outsource manufacturing, audit, fashion leading design, centralized communication tools, external marketing, and working on sustainable fashion products. These are the activities that the business performs to gain effective results and achieve organizational objectives.
Key resources: Key resources include the online store, supplier driven, direct selling, CSR selling, etc. Key activities of the business are performed while utilizing key resources on an optimum level.
Value proposition: The business delivers core values to the customers to satisfy customer needs and engage ineffective results. The core values of the business include trendy collection, flexible selection, high-quality products, sustainable fashion and fashionable affordable and competitive strategy.
Customer relationship: Target customers expect to establish a strong relationship between customers and suppliers. Brand reputation, trust, transparency and self-service are maintained by the organization to achieve success and ensure competitive advantage for the business.
Customer segment: The business creates values for a certain group of people. H&M focuses and targets customers of all age group. Trendy searchers and fashion bloggers are attracted to purchase the product to which business terms and customer expectations are satisfied. The most important customer is the price-oriented group who are in search of quality product and price-efficient products.
Channels: The distribution of the product is based on a certain channel to which the company ensures business sale with the best channel. The distribution channel that H&M adopts includes online purchase, retail stores and e-commerce platforms such as Amazon and other platforms.
Cost Structure: Cost structure includes the cost of the business that include collecting resources and ensuring key activities performed by the business. The cost structure of H&M includes R&D, manufacturing cost, supermarket expense, online cost and salary provided to employees.
Revenue streams: Company enjoys profit from increased sales volume, new franchise partner, advertising benefits and brokerage fees. Revenue stream contributes to overall revenues of the business to which the business operations are working inflow.
Competitive strategy
H&M allows a number of resources to focus on the fast-fashion business. The business has a competitive strategy to design products quickly that ensure fashion trends and ensures high sales volume with low margins. The business model that H&M engages tends to ensure a relatively low price to which the company gets a complete advantage in the fashion industry. Low price and high-quality products attract customer as it engages the customer in saving money. The company succeeds as it consists of a variety of products, international expansion and globalized market chain. Success in the fashion retailers is expected by the customer that ultimately captivates the market and allows customers to excel in fast fashion. The company engages in new styles and products to which it executes the knock off strategy, which helps to ensure efficient design team.