1. Introduction
1.1 Name and purpose of the system 2
1.2 e-Marketplace 2
2. E-Business Components
2.1 Internal Organizational Functions
2.1.1 Marketing 3
2.1.2 Customer Service 3
2.1.3 IT Maintenance 3
2.2 Firms, Suppliers and Business Partners 4
2.3 Business Processes
2.3.1 Order Fulfillment 5
2.3.2 Customer Relationship Management 5
2.3.3 Logistics 5
3. Possible technologies
3.1 Hardware, Software, Network & telecommunications technology
3.2 Payment systems and security technologies
3.2.1 Payment Systems 6
3.2.2 Security Technologies 6
4. ASOS’s e-business system
4.1 Tangible Benefits
4.1.1 Enhance customer relationship 7
4.1.2 Improve time management and cost efficiency 7
4.2 Intangible Benefits
4.2.1 Improved strategic position of company 8
4.2.2 Increasing customer loyalty 8
4.2.3 Vision and mission 8
5. E-Business Issues
5.1 Security and Privacy Issues 9
5.2 Marketing Issues 9
6. References 10
1. Introduction
1.1 Name and purpose of the system
ASOS was launched in 2000 by Nick Robertson and Quentin Griffiths. Through its success it is currently United Kingdom’s largest independent online store and fashion beauty retailer. ASOS …show more content…
currently has websites in UK, USA, France, Germany, Spain, Italy and Australia (Wiki). ASOS focuses on young shoppers to imitate the looks of celebrities but at a fraction of the cost. Starting its business under its own label, ASOS evolved to offer other fashion brands (Wray, 2010).
The main purpose of ASOS is to easily purchase fashion and beauty products online aiming at young shoppers by practicing a virtual business system. Through the use of e-commerce strategy and method, sales of European markets rose by 65 percent on year while international sales rising 47 percent (Inside Retail, 2013). ASOS appears to be in a constant state of growth as the company seems to morph.
1.2 e-Marketplace
The company conducts a private sell-side marketplace because it is owned and controlled by the seller focusing solely on online sales. ASOS is presented in a B2C and B2B model. ASOS performs businesses with other business participants to offer third party brands (B2B). It provides its own line of fashion products as well as other brands to target large amounts of consumers or individuals (B2C). Apart from its main operation, ASOS Marketplace also provides service where users or individuals can sell pre-owned clothing or fashion items which use an infomediary model.
2 E-Business Components
2.1 Internal Organizational Functions
2.1.1 Marketing
ASOS markets their products by targeting a specific market segment of young fashion conscious consumers. The type of marketing used in this case is market segmentation. It caters for a narrow market segment by providing high end designer prices and ASOS’s own label affordable products.
To improve marketing effectiveness ASOS also uses collaborative filtering. It uses data from users to predict and provide recommendation to customers on similar fashion or other items to complete the look. Collaborative filtering delivers a very precise and targeted marketing to customers. This type of marketing can be very effective to customers, as one may feel that they are personally addressed and more likely to review recommendations.
2.1.2 Customer Service
ASOS provides several customer services to ensure the best online shopping experience possible. It has a Help & Contact page to answer any questions or concerns customers usually have. Under the Help & contact page it is divided into categories such as FAQ, delivery, returns and so on. Further enquires can be done through ASOS twitter customer care or ASOS mail communication, where customers fills in queries and wait for a response. In addition to online customer care, ASOS has a customer care office in Hemel Hempstead, United Kingdom. Customers who would like to talk face to face with customer service representatives can head to the ASOS customer care office. Although online customer care is essential today, traditional customer engagement still have many benefits.
2.1.3 IT Maintenance
ASOS manages and operates websites by themselves. As ASOS is a pure play organization, the websites are regularly updated and maintained to operative effectively. To prevent any loss of data, backups are necessary. In order to boost security and privacy, up to date system are needed such as antivirus and firewall.
2.2 Firms, Suppliers and Business Partners
Partnerships Content
Fashion Brands There are over 800 different brands offered in ASOS and few of the popular brands are :
-French Connection
-Calvin Klein
-Levi’s
-Miu Miu
-Ralph Lauren
With many varieties of brands, ASOS can target larger audience around the world.
Payment method : Paypal Paypal is ASOS main online payment method because it has benefits such as:
-Credit card security
-Flexibility to make payments online
-Eliminates risk of identity theft
-PayPal apps on smart phones make it even easier to make payments
-Using PayPal in ASOS have special discounts
Delivery Method : SkyNet Worldwide Express SkyNet is an express courier network service specialized in reverse logistics and provide different reverse logistic methods such as :
-Doorstep collection
-Sending goods by posting it to the nearest SkyNet office
-Collection of goods by collecting them in the nearest SkyNet office
All this methods are implemented for the convenience of customers.
2.3 Business Processes
2.3.1 Order Fulfillment
ASOS’s order fulfillment is the process that they undertake in order to provide customers with their ordered goods.
It all starts from customers making a payment after selecting a product. This is done by using a third party payment system such as PayPal. After ASOS gets confirmation on the payment, stocks are then checked to be delivered to the buyer. To check the status of the shipment real time, a tracking link is also provided. The replacement of stock is done through in-house production or by receiving more from suppliers. An official receipt or link is then sent to customers in order to confirm the order and deliver to their front
door.
2.3.2 Customer Relationship Management
For ASOS, customer relationship plays a huge role in its success. This is achieved by providing an outstanding customer service. Besides customer service, ASOS provides customer care by using social networking channels such as Twitter Live Customer Care and Consumer Direct which enables them to maintain a strong customer relationship. ASOS aim is to enable consumers to purchase their products without going through much hassle and making it as easy as possible. This is where they apply a ‘three click rule’, where making purchases from ASOS should never be more than three clicks (Porter, 2008).
2.3.3 Logistics
ASOS logistic operations involve efficient and effective flow and store of its goods from the point of origin to consumption. Through e-commerce logistics, it enables ASOS to reach a larger audience of customers. Besides using SkyNet Worldwide Express (reverse logistics), ASOS uses another courier known as Collect+. Customers who have made orders from ASOS can have their goods delivered to the nearest Collect+ outlet. This allows buyers to pick up their parcel at their own convenience in any Collect+ outlet, by doing so this will increase customer’s satisfaction.
3 Possible technologies
3.1 Hardware, Software, Network & telecommunications technology
The hardware, software, networks technologies used by ASOS are:
Type of Technology Description
Hardware • Computers to conduct any computer related task
• Fax Machine / Telephone for communication
• Printers to print any documents needed
• Servers for web hosting
Software • Web 2.0 applications such as Facebook and Twitter
• Accounting software to process any accounting related transactions
• Inventory management software for tracking inventory and deliveries
Network • Internet for communicating with customers online, search for information on the web
• Intranet to share information within an organization
• Extranet to share data with other business partners
• Web portal allows portable devices to connect to ASOS shopping mall
3.2 Payment systems and security technologies
3.2.1 Payment Systems
The payment options used by ASOS are:
Payment Methods Description
Credit Card • Visa
• MasterCard
• American Express
• Dankort
Debit Card • Visa Electron
• Laser
• Maestro
• Delta
• Solo
• Dankort
PayPal Allows payment and money transfers to be achieved online iDeal Online payment that allows direct transfers from a bank account
3.2.2 Security technologies
To assure security, ASOS uses Comodo SSL certificate. The SSL technology ensures that sensitive information being sent to the sever is secure and has not been altered. Through encryption, confidential information such as name, address and credit card details cannot be read by anyone other than the authorised party (Is it safe to order online?, 2013). With the help of SSL, it enhances security and users are less prone to encounter phishing attacks.
4 ASOS’s e-business system
4.1 Tangible benefits
4.1.1 Enhance customer relationship
With the use of social networking sites and internet, it increases awareness to large amounts of consumers in a short period of time. ASOS makes full use of this method with blogs, Facebook, Twitter, Youtube to promote its products. With the growing use of internet and social media, ASOS advertises its products and promotions online which increases customer base and brand identity. It also helps customers to give feedback or make complaints which help establish a stronger relationship between business and consumers. Therefore social media and internet are priceless resources for ASOS to increase customer base and profits.
4.1.2 Improve time management and cost efficiency
As ASOS uses a pure e-commerce system, customers need not move around to select products which show there is a huge gain over physical stores. The costs of products are cheaper compared to physical stores because extra manpower is not needed to operate the physical store which means ASOS saves on wages and rent for physical stores. Thanks to internet marketing through Facebook or within ASOS website, it is more targeted than traditional media. It is cost efficient and recognized by millions of people.
ASOS applies e-commerce systems which improves the efficiency of logistics and inventory management. With the help of e-commerce, order fulfillment is accomplished quickly, more accurately and cost effectively. There is no need for phone calls to clarify and confirm purchases. This improves the efficiency of order fulfilment and improves the speed of delivery which surpasses customer expectations.
4.2 Intangible Benefits
4.2.1 Improved strategic position of company
As one of the leading online fashion store, ASOS has gained a competitive advantage in the fashion industry (Greenblat, 2013). ASOS were able to implement strategic plans earlier than its competitors and managed to gain a better position in the market. As a pure online retailer, ASOS must focus on maintaining and ensuring their website is constantly updated and managed professionally. In contrary to ASOS, competitors whom are click-and-mortar based have to emphasise more towards maintaining their physical store as well as their website.
4.2.2 Increasing customer loyalty
E-commerce businesses can face problems since they are not able to communicate directly with their customers but ASOS has managed to continuously increase customer loyalty by providing excellent customer services to its customers such as ensuring efficient and effective payment and delivery of goods to customers. ASOS also makes sure of the convenience in finding items, comparing and checking them out. Customers who are highly satisfied with the services provided would have increased loyalty and will give positive testimonials and word of mouth to other consumers.
4.2.3 Vision, Mission and Strategy
ASOS’s vision is to create a unique multi-channel shopping experience where twenty-something fashion lovers can network, share ideas, create their own styles and shop together. (Home – ASOS Plc., n.d.). Conducting their business online plays an important role in achieving their vision. With the advancement of Web 2.0, ASOS websites and their participation in social network accounts not only facilitates customers to interact with one another and the company, but also encourages them the share and spread their fashion ideas and knowledge, which relates to their vision. This would then lead to achieving the company’s mission which is "to lead the fashion revolution" (ASOS - Next Generation Pledge, 2010). With the help of the e-business systems, ASOS is able to continue to ensure all participants of the system stay connected through online network, to continue to share and grow business ideas together, since ASOS is a virtual organization.
5. e-Business Issues
5.1 Security and Privacy Issues
Security is crucial in every organization. Since ASOS is an online based organization there are various types of attack that they can encounter.
Identity theft is one of the main problems faced which prevents consumers purchasing from ASOS. New born sites usually are not trusted by first time online purchasers. To avoid this, ASOS uses Comodo SSL certificate which help in securing online payment system and reduce identity theft.
The most basic protection against technical attacks is firewalls and antivirus. These basic protections should be implemented in every e-business as even small viruses may cause websites to crash which would require a significant time to recover. This also affects the reputation of ASOS. In order to have an improved, more efficient and effective security in the long run, ASOS should invest in security to enhance productivity.
5.2 Marketing Issues
One of the marketing issues ASOS face is trust issues on online shopping. Constant phishing attack on e-commerce sites make customers more aware of the risks of providing personal information online. Therefore, building trust is a crucial key to promoting products online. ASOS integrates the latest privacy and security technologies to enhance security online.
As ASOS being a pure play organization, it faces a tough competition in the virtual business platform. Today, many organizations perform businesses online. To increase market share, ASOS have to set themselves apart from the competition by being more creative and innovative, such as providing more product or service than other competitors which in return attracts more customers. Another way to attract customers is to offer discounts or coupons to hike sales.
References
ASOS. (n.d.). In Wikipedia. Retrieved May 5, 2013 from http://en.wikipedia.org/wiki/ASOS.com
ASOS - Next Generation Pledge (2010, January 16). Drapers. Retrieved from http://www.drapersonline.com/news/people/next-generation/asos/5009645.article
Home – ASOS Plc. (n.d.). ASOS Plc. Retrieved May 14, 2013, from http://www.asosplc.com/
Greenblat, E. (2013, April 30). One purchase six seconds. The Age. Retrieved from http://www.theage.com.au/business/one-purchase-every-six-seconds-20130430-2iqug.html
Is it safe to order online? (2013, January 27) In ASOS. Retrieved from http://asos.custhelp.com/app/answers/detail/a_id/15/~/is-it-safe-to-order-online%3F
Porter, C. (2008, November 15). Asos: net gain. Telegraph. Retrieved from http://fashion.telegraph.co.uk/article/TMG3453897/Asos-net-gain.html
Pureplay power still growing. (2013, February 6). In Inside Retail. Retrieved from http://www.insideretailing.com.au/IR/IRNews/Pureplay-power-still-growing-7444.aspx
Wray, R. (2010, July 14). Asos co-founder cashes in as profits jump. The Guardian. Retrieved from http://www.guardian.co.uk/business/2010/jul/14/asos-nick-robertson-profits-increase