Economy and Technology Analysis for H&m
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ECONOMY AND TECHNOLOGY ANALYSIS FOR H&MEconomyH&M wants to expand their business in new markets like countries in Latin America, Bulgaria, Thailand, and etc. For countries in Latin America like Mexico, the unemployment rate is at 6.2% while in Bulgaria it’s 10.6%. Since H&M employs local employees in each country that they operate in, they can hire local employees and gain advantages such as paying locals in their local currency and they also doesn’t need to provide them accommodation. In addition, H&M can improve their relationship with local governments as they are hiring local staff instead of bringing foreign workers into their countries. However, H&M might want to consider inflation rate in each country that they want to enter. Mexico may have high unemployment rate which gives H&M an opportunity to recruit employees quickly but Mexico’s inflation rate is at 2.88%. This means H&M might want to reconsider their price policies and the taxes that they have to pay. However, H&M is able to enjoy countries with low inflation rates like Bulgaria, their inflation rate is at 0.9%.
TechnologyIn recent years, technology has grown rapidly and is able to accommodate all sorts of info from all around the world in just a few seconds. H&M uses a wider range of social media tools in reaching out to their customers. H&M is using social media tools like Facebook, YouTube, Instagram, and Twitter. The company also constantly updates photos and information about their new collection, ways of styling their clothing, and also collaborations with famous designers on the social media pages. H&M also has a mobile application designed for smart phones which is available in both the Apple store and Android store. Also, H&M’s website is updated every time they have a new collection and consumers are able to view prices of each H&M items through both its website and smart phone application.