This paper talks about a brief history of the company H&M and the strategies that it has used and is using that have contributed majorly to their growth and expansion. The paper focuses on two very different strategies, the Blue Ocean Strategy and the Red Ocean Strategy and their characteristics. It attempts to answer whether H&M really used the Blue Ocean Strategy or were they only able to utilize strategies in the Red Ocean.
Anyone who is fashion-forward and fashion-conscious would certainly recognize the brand name H&M. Popular for selling and creating trendy pieces at an affordable price, it is no wonder that a lot of people choose to buy from the retail store. Created by Erling Persson in the year 1947, the company H&M had its roots back in Sweden as a fashion retail store that sold only women’s clothing. His first store was named Hennes, the Swedish equivalent of “hers”. Twenty one years later, the name was changed to “Hennes and Mauritz” after Persson purchased a hunting store located in Stockholm named Mauritz Widforss. The hunting store sold not only supplies for hunting, but men’s wear as well. It was only then that the store catered to both men and women’s fashion.
Over the years, H&M continued to expand and opened numerous stores all over Europe. Their clothing line expanded to cater to men, women, teens, and children. H&M opened their stores in several countries such as USA, Canada, Dubai, Kuwait, Hongkong, China, and Japan. The fashion label will also open stores in Tel Aviv, Jerusalem, and South Korea by 2010. The company line also offers online shopping limited to countries in Europe namely Austria, Denmark, Finland, Germany, Holland, Norway, Sweden, and Swedish Finland.
In the past, the H&M also featured one-time collections made by popular, well- known designers such as Karl Lagerfeld back in 2004 and Stella McCartney in the year 2005, and Viktor & Rolf in ...
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“H&M and Their Blue Ocean and Red Ocean Strategy Essay”, n.d. https://studentshare.net/miscellaneous/383614-hm-and-their-blue-ocean-and-red-ocean-strategy.
However, the industry experienced slow growth during the late 1990s due to market saturation. This paper seeks to determine whether the industry is market oriented, as well as determine the viability of a frozen yogurt company in Saudi Arabia. According to the findings of the report, the industry is marketing oriented, and Saudi Arabia is a potential market for the company.
On the other hand, Porter’s five forces strategy, often known as one of the red ocean strategies, determines the competitiveness and attractiveness of the market in order to know the opportunities and threats that exist for a company’s products in the market.
Blue ocean strategy refers to creation of new and uncontested markets spaces whereby competition is irrelevant due to new customer value (Kim and Mauborgene 3). On the other hand, red oceans represent industries that are currently in existence and where competition rules are well defined.
According to the paper over the past years the goal of different companies has become to make their brand relevant or the competitors irrelevant. Many leading names of today have done this in order to make their mark in the world. Starbucks is a blue ocean it has been so ever since it started but slowly and gradually they are moving towards becoming Red Ocean which means to compete with others.
BOS does not measure against others. Compared to different approaches assessing out performances by competition, BOS endeavors to create an entirely innovative marketplace space that would deem the competition as insignificant (DuBrin, 2012). BOS provides a set of tools and methodologies to fashion innovative market spaces.
In order to make this possible, company need to market its products and services through the best mediums available and make the consumer conscious about the product. Marketing is an essential and important tool of any successful business. Scott (2006)1 states that companies without marketing mindset are at a disadvantage in today's business world that are product centric rather than customer centered.
Chan Kim and Renee Mauborgne deals with the former idea of novelty and improvisation to generate such growth and profits one never knew was possible. New ideas are the key or the heart behind the book.