Research Paper (undergraduate) 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?
