The value chain analysis of accompany is extremely essential to understand the internal dynamics of a firm. It has two essential components: the support activities of a firm and the primary activities of the firm. Support activities include technology development, firm infrastructure, procurement and human resource management while primary activities contain operations, marketing and sales, inbound logistic, outbound logistic and service. Let us consider the support activities of H&M in detail. If we consider the infrastructure of H&M, we find that the firm has made steady progress since its inception in 1947. It is present in 62 markets in the world and currently has more than 4000 stores and employs over 132,000 people. The head office of H&M is located in Stockholm, Sweden. The design and buying, finance, buying, accounts, advertising, logistics and communications which are related with the major department are also located there. The firm is therefore looking forward to adapting a global strategy to work at any economy and geography. This huge employee base and worldwide reach of the firm are a huge competitive advantage to H&M. Especially in today’s cut throat competitive world, it is becoming increasingly difficult for firms to enter new economies. Government regulations and other different political and legal factors also make it difficult for firms to operate on an economy of scale model. Another major competitive advantage that H&M possesses is that it has a huge customer base online and hence it can keep progressing in its online store market. Although H&M is present in as many as 62 countries, only a few countries like UK, Denmark, Sweden, Austria, Germany, Norway, USA and Netherlands have access to the online store. Business and trade regulations might be different in different countries and geographies. Increase the reach of these online stores will help H&M increase its sales a lot and also facilitate an expansion in its customer base. If we look at the next aspect of procurement, H&M is already working in an advantageous position. It is the second largest cloth retailer company of Europe. For the production of its products, H&M uses a lot of raw material and involves a number of workers. Hence, its mains recourses are labour, material and energy. Therefore, just a small fluctuation in the price of products can have a huge effect on the profits of the company. Also, the firm does not have any manufactories of its own. This fact causes some serious concerns in controlling the prices of production for the firm. However, it is also an advantage not have factories of their own. In fact, if a problem appears, H&M can easily change its suppliers. This independence to choose its own suppliers, when required, gives a lot of competitive advantages to the firm. Moreover, due to its tremendous size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price (Lasserre, 2007).