According to my classmate, Bryant Hsiao’s blog post, he said that H&M has announced their collaboration with Versace. Using Porter’s Generic Strategies, H&M would be considered “Cost Leadership” and Versace as “Focus” strategy. He stated in his blog that there might be a, “confusing image of brand” as H&M is targeting low price products and Versace is the complete opposite, by targeting high and expensive price products.

However, I disagree and see this being a positive opportunity for these two businesses. Versace and H&M already have a strong brand image and reputation, and collaboratively they could use this to their advantages. For example, they could easily develop a “combination brand names” for the new products that H&M and Versace produces.

I see this as an opportunity for H&M and Versace because I think they are spotting market gaps in their markets and building new products for it. Perhaps the product they sell here would be middled price and this allows the collaboration of the two business to have a well-rounded product life cycle.