Asos Analysis
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Table of ContentsIntroduction Chapter 1: Current Situation of ASOS 1.1 4Ps Analysis 1.2 SWOT Analysis Chapter 2: Brazil: Potential New Market 2.1 PESTLE Analysis Chapter 3: India: Potential New Market 3.1 PESTLE Analysis of India Chapter 4: Advantages and Disadvantages of the Markets Conclusion References TASK 1: Current Situation of ASOSASOS are visited by a number of individuals on daily basis, and latest trends are shipped to a number of customers across 241 nations and territories. The organization is also known to be having its own sites for eight specific nations. With the solid growth of the company, available capital for making investments, and predictions made for increased future global sales, ASOS hold great opportunities for expanding across the globe (ASOS 2013). It has been suggested by a number of researches that due to the globalization and democratization of innovation, individuals and brands from each and every corner of the globe have been working for launching new services and products. There are lower barriers in entering the market, especially if the organization has been working on online platforms (Anand 2011). However, there is saturation in the domestic market and weak links have been found within the economy. Therefore, it can be stated a natural decision for the business of ASOS would be for the implementation of growth efforts within the hub of Latin America, emerging market and BRIC nation, Brazil. This report will be analysing the current conditions of ASOS, with an inclusion of SWOT analysis and 4Ps analysis. The next chapters will be analysing the market of Brazil and India as the potential new platform for the expansion of ASOS. The final chapter will be discussing and recommending the market of India or Brazil that should be targeted next by ASOS. ASOS is a virtual organization of retail fashion that focuses on continuously expanding their share of market and the related products have been reaching the global markets (Bahree2011). However, the level of competition is highly active in the industry of online fashion and ASOS has continuously been successful in the management of growth. 1.1 4Ps AnalysisProduct: At the organization of ASOS, sale of a large number of branded products is initiated that are similar to the fashion trends of celebrities. Clothes for women and men are sold and there is an inclusion of product categories such as shirts, coats, footwear and a number of other categories (Bahree2011). The line for the clothes of children has been recently introduced for the base of customers. A number of brands are being sold by the organization as well that includes Nike, Karen Millen, Calvin Klein and many others.
Price: At the organization of ASOS, a reasonable strategy of pricing is provided, however, the range of prices is from low to high. Majority of the products sold are the ones worn by celebrities but at a cheaper amount of price. The key difference that has been found between the ASOS and the high street stores is that there is a charge on delivery (BBC 2014). In the current position, approximately 7 per cent of the customers making a purchase with an average size of basket to a certain amount. Place: ASOS can be found just a click away. This refers to the fact that goods are provided by the sources of internet only. This in turn means that there is no presence of a physical store that can be visited by the customers and there is a need for logging on to the page of web for looking at products and purchasing them as per the price provided (Bigne 2005). However, the business involves a warehouse along with certain other facilities for keeping and storing the products.Promotion: The organization of ASOS always focuses on the attraction of customer by a number of different sources of promotions like the codes of discount. They are also known to be advertising for the promotion of the business by sending regular emails to the registered users or customers regarding new offers, sales, and products, brands and collections (Bindu 2013). They have also been providing booklets and leaflets once the customer has successfully placed and received an order. 1.2 SWOT AnalysisStrengthsProvides a diverse and exclusive categories of brandsProvides a unique range of categories for product that include clothing, footwear and accessories for women, men and children (Bradstreet 2009)Focuses on innovative ways for displaying merchandise to the base of customer and ways of interaction for shopping that include the marketplace of ASOS WeaknessesAs the organization of ASOS has online price only, the customers do not the chance to try on, or feel the cloth before they make the purchaseThere is still scope for the organization to expand the platform of marketingFree services of shipping provided by the costs of ASOS on yearly basisThe return of purchases is at 30 per cent to the company that incurs additional costs of shippingOpportunitiesCustomers have been showing willingness for spending more investment on different and unique products that is important for diversifying exclusive features of brands at the ASOS (Chatterjee2011)Customers have been continuously making more purchases from the platforms of mobile that include tablets and phonesThreatsAn emphasis is being laid upon the in- store experience of customers while they are successfully interacting with merchandize and staff of salesMajority of the retailers have been entering the market that feature the platforms of e- commerce for the sale of merchandise (Davidson 2012)