Generic corporate strategy comprises the choice of lowering cost and differentiation

Generic corporate strategy comprises the choice of lowering cost and differentiation. There is a chance for a firm to adopt a hybrid strategy which integrated in both aspects. According to the discussion above, H&M’s are adopting a hybrid strategy. H;M put a huge effort into reducing the production cost. For instance, the logistic system, that is, the core competency, reduce the distribution cost since the internal swift of inventory are more efficient instead of the traditional transfer method from warehouse to stores. H;M also reducing the cost by enjoying the economies of scale since it outsourced to low-cost country in Far East and South Asia. With their mass production, the production cost will reduce. Despite of low cost, H;M also pay attention to differentiate itself from other competitors.
Since the management philosophy is being ‘Fashion and quality at the best price’. Thus, there are about 200 in-house designers employed to design to forecast the latest trend and design to meet the customer satisfaction. Also, H;M audit the supplier to ensure the quality. With the high standard of quality for the products, H;M can differentiate from other competitor with a relatively reasonable low price. H;M adopt an integrated strategy to compete in the industry. The constant improvement in technology reduce the production cost and the fundamental value confirms their direction to be different from others.