Jose Domingo Taberner TarazonaC00130760Services Operations Management II

To give the customer unbeatable value by offering “fashion and quality at the best price.”

Business Concept :

More than1,490 stores

in 29 countries

international H&M is an

fashion house with around60,000 employees

Concepts…

Women Men Young Trend

Children Accessories- UnderwearFuture Mothers

Expansion development 1974 – 2006

Number of stores

Number of

markets3 4 5 6 7 8 9 10 11 12 14 18

*Expansion since the stock-exchange quotation 1974

72 83 96 105 108 122 124 128 135 147 158 168 175 188 207241 249 260

291324

357393

443490

550

613

682

771

844

945

1068

1193

1345

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100011001200130014001500

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while maintainingGrow

profitabilitystores by10-15 per cent per year

Increase the amount of

in existingIncrease sales

stores

Major Competitors

VS

Employees

Target Groups

WomenH&M defines several concepts of women, offering them from the basic items to more exclusive

sets and keeping in mind to satisfy those who want to keep up with the international trends

MenTheir various lifestyles, needs and tastes are reflected in the collections, including as in the

women department, a whole selection of sportswear

Young TrendThe fun teenager department is oriented for girls and boys.

ChildrenFrom babies, children and young teenagers.

Future MothersThere is a special section for women who still want to be fashionable during their pregnancy

without refusing comfort

Winning Wheels of Service

Cu

sto

mer

s Em

plo

yees

Shareholders

The

Mom

ent

of

Tru

e

Value Chain

t

Firm Infrastructure

Human Resource Management

Technological development

E-Procurement

Inb

ou

nd

Lo

gis

tic

Op

erat

ion

s

Ou

tbo

un

d

Lo

gis

tic

Mar

keti

ng

&

Sal

es

Ser

vice

Margin

Margin

The Service Profit Chain

Internal service quality (the working

environment, workplace)

Employee satisfaction

External service value

Customer satisfaction

Customer loyalty

Revenue growth

Improved profitability

Employee productivity

Employee retention

Product

Product

Pricing

oFew middleman

oBuying in large volumes

oHaving a broad, in depth knowledge of design, fashion buying the right product from the right market and textiles.

oBeing cost-conscious at every stage

oHaving efficient distribution.

(Annual report 2007).

Promotion

Offers, used some important designers....

Always the best location....

Milan

Stockholm

Vienna London

New York

Place

Sales markets

New markets 2007/2008

Production offices

No factories of our own

Around 700 suppliers

Around 20 production offices

Place -Major Suppliers-

40%

60%

People

Internal Marketing of H&M:

•Moral Involvement•Motivation•Communication•Increase employee’ involvement

Recruiting, training and rewarding

Recruiting different types of employeesTraining employees.Career developmentRewarding with fixed salary and extra benefits.

Internal Marketing of H&M:

•Moral Involvement•Motivation•Communication•Increase employee’ involvement

Recruiting, training and rewarding

Recruiting different types of employeesTraining employees.Career developmentRewarding with fixed salary and extra benefits.

Physical evidence

Facility Exterior•Different exterior design.•Impressive shop window.

Facility Interior•Different shops in the same store•Music•Nice furniture•Interior decor

Other Tangibles•Free H&M magazine•Employees

Processes

Conclusions

Mains problems

Recommendations

Bibliography

•H&M 2007. Corporate Social Responsibility (CSR) Report, Stockholm, http://www.hm.comH&M2007.

•Annual Report, Stockholm, http://www.hm.com

•Unander-Scharin, Malin (2007).Reposicioning. A brand personality. Lulea University of Technology. Sweden

•Palmer, Adrian (2005). Principles of Services Marketing. 4th edition. UK.

Questions

THANKS FOR YOUR

ATTENTION