If we look at the primary activities of the firm, one of the core values of H&M is the sustainability of production. Thus, inbound logistic offers a lot of competitive advantages in the areas of sustainability. The main aim of the H&M firm is to offer the best fashion apparels at the most reasonable price. To achieve such an objective, H&M is trying to be sustainable and avoid as much waste as possible. To serve this purpose, all the waste material that comes from manufacturing plants, the transporting and other sources are properly planned to be either fully reused or recycled to reduce as much as possible. Besides, H&M is known for the quality and uniqueness of the designs in its products. It has outsourced all its activities but keeps itself in charge of the core function of designing its products. Thus, it has a major competitive advantage in designing the products. Hence, it is able to build a brand in the market because of the uniqueness and the quality of the designs of its products (Barney, 1991).
After a careful analysis of the five force model, we can conclude the effectiveness of the fast fashion industry for a new entrant. In addition, we developed a value chain analysis and studied the linkages of the activities of H&M with the value chain in detail. We also see an effective international expansion strategy which has been adopted by H&M. And it is putting in various efforts in social, political and economic domains to minimize the risks of international integration. It has also been adopting measures to standardize procedures and have an international approach. This is because H&M is an international brand with a global customer base. It currently has business in around 62 countries. H&M is known for the unique designs and the high quality standards of its products. Thus, H&M has developed a considerable brand loyalty in spite of cut throat competition in the market due to its unique value proposition offering.
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