[Internationalization of H&M]

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “Internationalization” in a holistic context. The main focus of the research is on “Internationalization of H&M” and the factors that influence the expansion of H&M. The research also analyzes many aspects of “Uppsala Model” and tries to gauge its effects on “Internationalization of H&M”. Finally the research describes various factors which are responsible for “Internationalization of H&M Company” and tries to describe the overall effect of different factors had on its expansion.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Outline of the Study1

Background of the research1

Problem Statement2

Aims and Objectives3

Research Question3

Ethical Concern3

CHAPTER 2: LITERATURE REVIEW6

Fashion Industry - Sweden9

Internationalization process of Companies12

The premise of the internationalization15

Internationalization - conceptual boundaries16

The benefits of internationalization17

Types of entry modes19

Why Internationalize?21

External forces affecting the increased Internationalization22

Internationalization Problems25

H&M26

The Uppsala Model27

CHAPTER 3: METHODOLOGY31

Research Approaches31

Case Study Methodology31

Data Analysis32

CHAPTER 4: DISCUSSION AND ANALYSIS34

Conceptual Framework34

International expansion of H&M35

Establishment chain36

Entry into Foreign Markets37

Summary40

CHAPTER 5: CONCLUSION42

REFERENCES45

APPENDIX47

CHAPTER 1: INTRODUCTION

Outline of the Study

This research focuses on the various aspects of social cohesion in deeply divided societies and comprises of the following chapters:

Introduction

Literature Review

Methodology

Discussion and Analysis

Conclusion

Background of the research

H&M is one of the most successful retailers that bring fashion and quality at the best price. H&M operate in 38 countries and has 76,000 employees all working to the same philosophy.

In 1947, H&M was established in Vasteras, Sweden by Erling Persson. They now sell clothes and cosmetics in around 2,000 stores around the world.

This paper is to address the gap in the literature by examining the internalization of H&M, this study adopt in depth analysis based on extensive secondary research. The literature is published in English including company document such as annual reports. The paper will start with brief overview of the global textile and closing industry, followed by the case study of H&M. The main part of the case looks at the aspect in the internationalization of H&M, motives for internationalization, market selection, entry strategies and international marketing strategies. In the final section, comparisons are made between H&M and one of its main competitors, Zara.

Problem Statement

As a result of global competition the phenomenon of internationalization is becoming increasingly important for companies today. One reason for the endless competition is that the global market is no longer large enough for all the companies. It is argued that the internationalization is becoming increasingly important given the tendency of a “borderless world”

There are several reasons for companies to enter the international arena today. The first reason for going international is to expand sales. Companies´ sales are dependent on two factors, the costumers´ interest ...