Case summary:
Company HM is the most famous retail clothing shop in Country S. This company used famous celebrities to advertise their products. In the beginning, the company started with just women’s clothing. Later, in 1968, they started men’s clothing too. This company is said to be the 2nd largest in the world with 3,200 stores in 54 countries and about 116,000 employees.
This company sells 6 different brands in 54 countries with 10 online markets. The brands included are Brand C, Brand M, Brand W, and Brand CM where each brand focuses on different styles and concepts. The collection of these brands motivated Company HM to present an exclusive global supply chain challenge.
This company has 160 in-house designers and 100 pattern markets to create the designs and patterns required by the customers. This company does not have its own factories; instead, it has 900 independent dealers to implement the designs. This company has set some 80 employees to check the quality of designs and patterns sent by the dealers.
The important aspect of this company is ordering each product at the optimal price, time, and best quality. This company works well with long-term patterns and by investing in significant resources.
Characters in the case:
Company HM,
Country S.
To determine: Whether it is surprising that the 2nd largest clothing retailer is selling in only 54 countries and 10 online markets. Also, determine the reason why Company HM is not covering more countries.
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International Business: Competing in the Global Marketplace
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