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H & M Growth Share Matrix Paper

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Strategic Management 1
Strategic Management
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Strategic Management 2
BCG Matrix
Ability to segment the market based on the revenue could give an idea on how a company
could strategize its operations. In the project, the market share for H & M was estimated based
on the revenue generated from each of the geographical areas it operates. The key segments
included the Asia, Oceania, Europe, Africa, North and South America. Currently, the market
breakdown, as revealed by Market Screener (2019) is: Europe (68.2%), Americas (16.6%), Asia
and Oceania (15.2%). By comparing it with the top competitor in the industry, the BCG matrix
below was obtained.

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Strategic Management 1 Strategic Management Student’s Name Professor’s Name Course Name Date Strategic Management 2 BCG Matrix Ability to segment the market based on the revenue could give an idea on how a company could strategize its operations. In the project, the market share for H & M was estimated based on the revenue generated from each of the geographical areas it operates. The key segments included the Asia, Oceania, Europe, Africa, North and South America. Currently, the market breakdown, as revealed by Market Screener (2019) is: Europe (68.2%), Americas (16.6%), Asia and Oceania (15.2%). By comparing it with the top competitor in the industry, the BCG matrix below was obtained. Strategic Management 3 From the matrix, it is clear that the Europe market segment is doing well. This is attributable to the fact that H & M has most franchise at Europe. The growth rate and the relative market share is high in Europe segment. But the fact that H & M does not have optimum market share could be explained by the fact that online retailers are aggressively taking over the market in the Europe. In fact Jun and Yoshiro (2018) revealed how H & M is beginning to close some of its stores in Europe due to fierce competition from online retailers. Similarly, as revealed by Jun and Yoshiro (2018), H & M is second after Uniqlo in Asia region. However, the matrix reveals that the growth rate is moderate. The reason why H & M has moderate performance is that its designs are not o ...
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