Strategic Management Asos Essay

2599 Words Oct 26th, 2012 11 Pages
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
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There aren’t any analogues to ASOS store concept, which offers 850 brands, from their own high street brand to luxury brands. Product differentiation “might involve tangible differences such as quality, reliability, performance or design. Alternatively it might be based on intangible elements such as reputation and branding” (McGee, Thomas & Wilson, 2005, p.201). Differentiation works better for ASOS, rather than cost leadership, because over the years ASOS managed to stay on top of its customers needs, providing them with a strong brand of their own and offering many other brands. Its main competitors like Next or Topshop just offering products of their own brand, so when customer visits ASOS it gives him choice. ASOS won’t be able co compete for the cost leadership, as their prices vary extensively. Their main competitors are high street retailers, but ASOS offers luxury brands as well, so it would be implicated to compare prices and compete for the lowest costs.

When talking about strategy it is always important to recognize risks. When market becomes saturated, like it is the case with ASOS and its market, “the market stops growing. Sales stop growing. Customers only buy to replace existing service or product. All of a sudden, business is not growing at the heady 25 or 30 percent per year”. (Fifield, 2007, p.58). ASOS will

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