1. Synopsis of H&M’s strategy and competitive position (1 page) What are the real the real competitive threats H&M is exposed to? What resources and capabilities and their competitive advantage relative to competitors? Is this position defendable and sustainable in the long-term? 2. Assessment of H&M’s resources and capabilities (3 pages) Distinguish between H&M resources and capabilities and provide an overview what they are. To that end, the VRIO framework can be used as an effective tool. Explain how diverse activities and processes are related and combined and form resources and capabilities that are protected from imitation and thus provide basis for sustained competitive advantage. 3. The value system and H&M international strategy (3 pages) Students should provide the value chain and system to cover all primary activities (i.e. inbound logistics, operations, outbound logistics, marketing and sales and service) and support activities (i.e. firm infrastructure, human resource management, technology development and procurement) of each of these for H&M’s operations. Overall, student can discuss possible ways for improvement in areas where H&M only has temporary advantages or is at par with competitors. Based on this, evaluate H&M internationalization strategy (export, multidomestic, global and transnational). Question the viability of this and the extent to which this strategy can successfully be pursued in the long term. 4. The future of H&M’s competitiveness (2 pages) Explain how H&M and its CEO Karl-Johan Persson can sustain and further strengthen the resources and capabilities where the company has competitive advantages. In that regard, students can be asked to find ways with which H&M can mitigate risks associated with the erosion of competitive advantage due to imitation. Students could consider new possible resources and capabilities H&M can develop new or new ways of managing existing resources and capabilities.
