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The strong pace of expansion continues into 2014 with a planned 375 new stores net. The highest rate of expansion will be in China and the US. There is also great potential for expansion in other markets such as Russia, Germany, Italy and Poland.

A basic assumption in the network model is that the individual firm is dependent on resources controlled by other firms. The companies get access to these external resources through their network positions. Since the development of positions takes time and depends on resource accumulations, a firm must establish and develop positions in relation to counter- parts in foreign networks. To enter a network from the outside requires that other actors be motivated to engage in interaction, something which is resource demanding and may require several firms to make adaptations in their ways of performing business. Thus, foreign market or network entry of the firm may very well be the result of interaction initiatives taken by other firms that are insiders in the network in the specific country. However, the chances of being the object of such initiatives are much greater for an insider. The networks in a country may well extend far beyond country borders. The relationships of a firm in a domestic network can be used as bridges to other networks in other countries. In some cases the customer demands that the supplier follow it abroad if the supplier wants to keep the business at home.

And here is how HM expend their company by using the network model. Sweden is HM’s home country and it is the head office of sub-supplier of China and US, the head office of H&M funded the financial resources by the Swedish banks. China is the downstream function of Sweden, because they have much cheaper labor resource and local company of the china serve for production subsidiary. Furthermore China is also an upstream function of Russia, Germany and other European countries, their production are most come from China. And there is another special...