Strategic Management Asos
Strategic Management
Assignment 2
Company Strategic Analysis – ASOS
Alina Yarovaya
BAMA 3.1
Assessor: Kevin Hefferman
Contents Page
1. Introduction
2. Online Fashion Retail Macro Analysis
3. Competitive Strategy of ASOS
4. ASOS Resources and Capabilities
5. Strategic Options 5.1 Strategy Evaluation
6. Conclusion
7. Appendix 1 - ASOS Ethical Code of Conduct
8. Appendix 2 – Profitability Ratios
9. Bibliography
1. Introduction
ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to luxury items.
Success and rapid growth of the company was achieved trough a well- planned corporate strategy, using their resources and capabilities in a way that would profit the company. “Strategic planning is the process by which the firm organizes its resources and actions in relation to an external environment in order to achieve its goals and objectives” (McGee, Thomas & Wilson, 2005, p.9). The report will explore current and future trends in the online fashion industry and analyze where ASOS is at the moment in terms of a market place and what strategy do they need to pursue, in order to achieve more financial stability and profitability in the future.
2. Online Fashion Retail Macro Analysis
Online fashion retailing is a rapidly growing and expanding market. “Retailing in the UK is expected to increase by a constant value CAGR of 2% over the forecast period, as Internet retailing will continue to experience strong growth and outperform store-based channels” (Euromonitor International GMID, 2011). But despite the stability of the market, macro environmental factors still can affect it:
* Globalization of markets * Recession * Reduction of disposable income * Demographics * Weather *
Assignment 2
Company Strategic Analysis – ASOS
Alina Yarovaya
BAMA 3.1
Assessor: Kevin Hefferman
Contents Page
1. Introduction
2. Online Fashion Retail Macro Analysis
3. Competitive Strategy of ASOS
4. ASOS Resources and Capabilities
5. Strategic Options 5.1 Strategy Evaluation
6. Conclusion
7. Appendix 1 - ASOS Ethical Code of Conduct
8. Appendix 2 – Profitability Ratios
9. Bibliography
1. Introduction
ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to luxury items.
Success and rapid growth of the company was achieved trough a well- planned corporate strategy, using their resources and capabilities in a way that would profit the company. “Strategic planning is the process by which the firm organizes its resources and actions in relation to an external environment in order to achieve its goals and objectives” (McGee, Thomas & Wilson, 2005, p.9). The report will explore current and future trends in the online fashion industry and analyze where ASOS is at the moment in terms of a market place and what strategy do they need to pursue, in order to achieve more financial stability and profitability in the future.
2. Online Fashion Retail Macro Analysis
Online fashion retailing is a rapidly growing and expanding market. “Retailing in the UK is expected to increase by a constant value CAGR of 2% over the forecast period, as Internet retailing will continue to experience strong growth and outperform store-based channels” (Euromonitor International GMID, 2011). But despite the stability of the market, macro environmental factors still can affect it:
* Globalization of markets * Recession * Reduction of disposable income * Demographics * Weather *
Bibliography: Annual report, 2011. Asos plc. [online] Available at: <http://asos.annualreport2009.com/> [Accessed 2 March 2012] Annual report, 2011 Doyle, P. (2003) Value-Based Marketing: Marketing strategies for Corporate Growth and Shareholder Value. 2nd ed. A John Wiley & Sons Ltd Publication Euromonitor International GMID (2011) Retailing in the United Kingdom (online) Grant, M. G. (2005) Contemporary strategy analysis. 5th ed. Blackwell Publishing Ghewamat, P Hill, C. (2003) International Business - Competing in the Global Marketplace. New York: McGraw- Hill, 4th Edition. Hitt, M. A., Ireland R. D. & Hoskisson R. E. (1999) Strategic Management: Competitiveness and Globalization. 3rd ed. International Thompson Publishing Jeannet, J.P Kapferer, J.N. & Bastien, V. (2009) The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. Kogan Page Kluyver, A.D Pitts, A.R. & Lei, D. (2000) Strategic Management: Building and Sustaining Competitive Advantage. South-Western College Publishing: Thompson Learning Thompson, J