Global strategy and foresight 11 store locations x x

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Global Strategy and Foresight 11 Store locations x x x Number of stores and subsidiaries x x x x Quality of production x x x x Flexibility x x x x Speed of production and delivery x x x x H&M has highly motivated human resources that work as team to deliver high quality services. H&M is vertically organized which enables utilization of its full potential and resources. The organization of H&M has led to increase in expenses and expansion in their stores . H&M Company uses vertical integration which allows allocation of resource appropriately. H&M has effective design, logistics, warehousing, and distribution which make it hard for competitors to outdo warehousing, in the market[ CITATION MON03 \l 1033 ]. The human resource of warehousing is highly motivated due to conducive working environment and fair salaries which add competitive advantage. Vertical integration lowers production cost which in turn reduces products’ prices. H&M production is very fast because it focus on capital- intensive where it is able to deliver new clothes within two weeks instead of six months like many competitor do. The design and style of the clothes that H&M produces are unique in that it takes too long time for competitors to imitate them[ CITATION Eri14 \l 1033 ]. By the time the competitors is managing to imitate the design of H&M clothes, the H&M changes to new fashion and style making it hard to imitate H&M products at all. To create a recognizable brand name in the fashion industry, H&M has created a high differentiation in products development
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Global Strategy and Foresight 12 and innovative designs to present unique products that meet high customer approval and satisfaction. The high differentiation also makes it challenging for its Critically review the relationship between organizational resources, external environment and firm performance. According to the resource based theory (RBT) even in equilibrium, firms exhibit resource and capability variation and consequently in performance. External environment influence the institutional resource contribution which could be increased or eliminated by transformations in the business environment. Expansion strategies confer advantage to firms since bigger firms display enhanced survival rates leading to the conclusion that firm size and institutional survival These variables separately and partially explain performance, an integrated view is likely to give a more complete and solid framework[ CITATION Eri14 \l 1033 ]. The theories chosen to anchor the variables include the RBT, DCT, stakeholder theory and the trade-off theory. The resource based theory (RBT) anchors propositions on organizational resources and contends that firm behaviors depend on resources. According to the DCT firm competitiveness is anchored on unique processes, aided by the firm's particulate resource configurations as well as coevolutionary path(s) selected or inherited. External environment arguments are grounded in the
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