H&M (Growth Strategies)

1.Growth strategy – a corporate strategy that is used when an organisation wants to expand the number of markets served or products offered in order to increase revenue, number of employees or market share. (Sohret’s book)

2.The product product/market matrix.

(Ansoff’s Matrix, 2011)

3. 1IMPROVING DAY-TO-DAY PERFORMANCE.

Position in product/market matrix | Advantages | Risks | Improvements |

Market penetration | * Attract more customers * Growth of market share * Increase in profit * Increase in sales * Increasein prestige | * Expensive to employee luxury designers * No guaranty on performance in the future * Possibility of failure under struggling economy of UK | * Special offers for exclusive collection * Discounts |

4. 2CHANNEL EXPANSION

Position in product/market matrix | Advantages | Risks | Improvements |

| * 4.7 of total retail sale (2009)Using 3D technology(online fitting – room) * Freedom of choice * No time limitation (24/7) * Ability to compare products * Secure web-site * Flexible system, allow for reposition * Cheaper prise | * Lack of personal attention to customer * Human side * H&M fans can currently shop online in a handful of European countries like the Netherlands, Germany, Denmark, and Norway | * Online store in the US market in 2012 * Improve the system of delivery |

5. 3PRODUCT CATEGORY EXPANSION

Position | Advantages | Risks | Improvement |

Diversification(horizontal) | * Spreading the risks * Attracting more customers | * Taking time to build its popularity in the new markets * Possibility of failure * Decrease in popularity of other product categories | * To avoid the failure, research for profitability, patient market, the length of time of return |

6. 4BRAND EXPANSION

Position | Advantages | Risks | Improvement |

Market...