Fashion adopted by H&M is usually the one which is the ongoing trend in the society. It can be clearly seen through the massive budget allocated to the marketing sector that H&M is heavily dependent on the marketing campaign that they undergo. 4% of the revenues of H&M are allocated to the marketing campaign. Furthermore, in 2002 a top fashion legend was selected by the H&M to promote its products through marketing. The economical spending of the H&M management does not stand the marketing campaign as the management itself decides to spend a heavy amount on marketing campaigns. This shows that H&M is to a great extent marketing orientated and is heavily dependent on these approaches.
Ans2. The efficiency/effectiveness matrix is a tool used by businesses to categorize companies according to their success in strategies and implementation. H&M can be categorized into the 'Thrive' cell of the effective/efficient matrix. The 'Thrive' cell in the matrix usually denotes organizations which are successful in forming and implementing strategies. Similarly H&M shows a sign that it belongs to one of these organizations because of its rapid growth and success. The strategy pursued by them is of the kind which adopts recent approaches to meet the demands of the society. ...Show more