Entry Strategy of H&M

997 words 4 pages
Since H&M opened the first shop in Sweden in 1947, using an American concept of shops selling stylish clothes with low prices bring H&M successful in the domestic market. H&M started to expand internationally from 1964. Not only Europe market, H&M also enter in North America, Asia and Middle East market.

H&M became one of the biggest worldwide leading fashion retailers. Until Year 2010, H&M has around 2,000 stores in 37 markets (Data from H&M-US Website). Details of market overview of H&M can be referred to Appendix I.
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Source: Annual Report of H&M 2009 http://www.hm.com/filearea/corporate/fileobjects/pdf/en/ANNUAL_REPORT_ARCHIVE2009__ITEM_3_1269424409886.pdf In this part, we will study how H&M enter into United Stated market using
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Evaluation of Wholly Owned Subsidiary in American market
H&M opened its shop in the USA market on Fifth Avenue in Manhattan in Year 2000 by setting up subsidiary. Once H&M entered in the America, it was easily caught up American people and gained greater profit. Until Year 2009, the sales in American market can be sustainable earned which can be presented the table as below.
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Source: Annual Report 2009 http://www.hm.com/filearea/corporate/fileobjects/pdf/en/ANNUAL_REPORT_ARCHIVE2009__ITEM_3_1269424409886.pdf It’s no doubt for H&M entry into American market successfully by using wholly owned subsidiary as entry strategy. Also, H&M did lots of works before enter into American Market such as extensive research of America including consumers demographics, purchasing power, competition. Those detail information let H&M know very clear about American market for its expansion.

Is “Wholly Owned Subsidiary” suitable for H&M enter in all market?
H&M will not use wholly Owned Subsidiary for entering all oversea market. Actually, H&M adapt it’s enter strategy for different countries. For North American market, European market and Asian market, H&M can use wholly owned Subsidiary as entry mode because those markets are free market.

However, it’s not possible to

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