Business Model free essay sample

usiness model canvas for Hamp;M Enabling promises Making promises Keeping promises Question â„â€"2 From the figure above we can see that the Organization makes promises to their customers. As well as organization does it, it also enables promises to Service Provider. And finally Service provider has to keep that promises to customers. Applying to Hamp;M. Hamp;M as an organization makes promises to their customers to deliver fashionable clothes with good quality at reasonable price. Their 750 suppliers situated worldwide especially in Asia have to enable promises of Hamp;M by manufacturing clothes designed by Hamp;M designers and pattern makers. They have to produce at high level monitoring all the processes of production. And finally suppliers have to keep promises made by Hamp;M to their customers by producing goods with appropriate quality and in time required. Question â„â€"3. We will write a custom essay sample on Business Model or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Hamp;M is world known retail brand. The main three key success factors are formulated in company`s business concept  «Fashion and quality at the best price†. They provide good style and design for their clothes. At the same time for ensuring good quality of their products they provide a complete process of testing and controlling the quality. The price of their products is lower in comparison with the price of toughest competitors. ‘We ensure the best price,’ they say, ‘by having few middlemen, buying large volumes, having extensive experience of the clothing industry, having a great knowledge of which goods should be bought from which markets, having efficient distribution systems and being cost-conscious at every stage. They have wide range of concepts for each customer segment: children, teen, men and women. The other reason why Hamp;M is successful is that they have approximately 2300 shops in 41 markets. They have shops worldwide in big and small cities in good locations. This factor and their strong marketing policy make them recognizable all over the world, so almost everyone knows about Hamp;M. Hamp;M is represe nted in all social networks and they regularly have advertisements in fashion magazines, billboards, World Wide Web. Hamp;M is also known as a fast fashion retailer, which establishes exciting collaborations with famous designers from high fashion industry, such as Karl Lagerfeld, Stella McCartney, Viktor amp; Rolf, Roberto Cavalli, Comme des Garcons, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin and Versace. All this factors are guarantying them many satisfied customers, strong performance and basement for future development of their company. Question â„â€"4. The market which Hamp;M operates in is very competitive. Their biggest competitors are Zara, Benetton, Top shop and Peacocks. This market is so-called Fast Fashion. Fast fashion  is a term used to describe clothing collections which are based on the most recent fashion trends presented at  Fashion Week  in both the spring and the autumn of every year. These trends are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. Fast fashion is considered to be a supermarket segment within the larger sense of the fashion market. This term refers to fast fashions nature to race to make apparel an even smarter and quicker cash generator. Three crucial factors exist within fast fashion consumption: market timing, cost, and the buying cycle. Hamp;M`s segment is inexpensive clothes and main customers are middle class people. Even though they are in this segment they sometimes they provide high fashion closing at prices lower than usual. It happens after collaboration with high fashion designers. .