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Successful Business Models in the Fashion Retail Industry. Strategic Audit of H&M compared to ZARA (Paperback)
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Successful Business Models in the Fashion Retail Industry. Strategic Audit of H&M compared to ZARA (Paperback)
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Scholarly Research Paper from the year 2008 in the subject Business
economics - Business Management, Corporate Governance, grade: 1,3,
University of Applied Sciences Berlin, course: Strategic
Management, language: English, abstract: In the increasingly
competitive and changing fashion retail market the two European
fashion retailers Hennes & Mauritz (H&M) and ZARA have
explored the market possibilities in different ways: Both companies
have chosen unique and very opposite business models and growth
strategies which had enabled them to expand quickly and
successfully beyond its own borders. Whereas H&M focuses on
outsourcing production, ZARA relies on controlling every step of
the value chain. Whereas H&M follows an aggressive marketing
and PR strategy, ZARA does virtually no advertising. But both
companies known for their "fast fashion" dress fashionable people
around the globe and compete for the title of the largest clothing
retailer in Europe in a league of their own. Thus, two main
questions arise: What makes both companies so successful and what
are the fundamental differences and similarities in their business
models? The following assignments starts with presenting the
background and development of both companies and giving a short
overview about the clothing retail industry. Chapter two explores
the business models of H&M and ZARA in terms of the whole value
chain. Based chapter two, the assignment ends with summarizing both
business strategies to provide a reasonable answer to the key
question: If you would have 100 euro to invest, in which company
would you invest in: H&M or ZARA?
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