Value Chain of HM Essay - 1073 Words

Hamp;M’s value chain: The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99) Support activities: * Firm infrastructure: Hamp;M is present in 44 markets in the world, holds more than 2,500 stores and employs over 94,000 people. Its head office is located in Stockholm, Sweden where there also are the main departments for finance, buying and design, advertising, accounts, communications, logistics,†¦show more content†¦Nevertheless, Hamp;M could keep progressing in its online store. Indeed, even if Hamp;M is present in 44 countries, only 8 have access to the online store (Sweden, Germany, UK, Norway, Denmark, Austria, USA and Netherlands). Increasing it, Hamp;M could increase its sales a lot. * Procurement: As it is the second Europe’s cloth retailer company, for the production Hamp;M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the p roduction’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, Hamp;M can easily change its suppliers. Moreover, due to its huge size, Hamp;M can easily manipulate with its suppliers to have the best quality at the lowest production’s price. Primary activities: * Inbound logistic: One of the core values of Hamp;M is the sustainability, and, thus, sustainability in production. The aim of Hamp;M is to offer good quality fashion at the best price and to achieve it, Hamp;M tries to avoid the waste. In this purpose, all the waste coming from the manufacturing, the transport and other sources are planned to be reused, recycled and reduced.(Hamp;M, 2012) * Operations: Hamp;M makes only one operation which is the design, as otherShow MoreRelatedDistribution Network Design And How They Are Managing Their Logistics1487 Words   |  6 Pagesparticular has seen an increase of consumers in developing markets for example of HMs plans for opening a retail store in India (HM, 2014). Recent study done by Nicola Calicchio shows that the BRIC countries account for a significant amount of recent growth, as large parts of their population rise out of poverty and realize their buying potential (Giertz-MaËšrtenson, 2012) This essay will be based on the retail company HM and will analyse their international strategy and how they manage their costRead MoreStrategic Capability And Competitive Advantage1489 Words   |  6 PagesScholes, Angwin, Regner, 2014, pp. 70). 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