SWOT Analysis of ASOS
Part 1
Strengths of ASOS
Brand image
One of the strengths of ASOS lies in its brand image in which it teams up with GLAAD, one of the leading voice of the lesbian, gay, bisexual and transgender community. The brand indorses a strong body image and does not follow any stereotypes. It also guarantees its consumers that it does not manipulate digitally the image and apparel worn by the models (ASOS, 2019). ASOS has established a strong and decent brand image by stressing organizational responsibility and allowing their clients to know the people they are helping. ASOS adores good promotion of the brand.
ASOS Designs
ASOS has a massive collection of designs, through which it ensures that all its customers find their fit. From its website, the brand boasts at least 30 design sizes, which it is dedicated to offer at the same prize (ASOS, 2019). Thus, ASOS develops her designs such that they can accommodate all the sizes. Besides designs, ASOS offers a vast assortment of products from which its consumers can chose. The firm collects fashionable commodities from different manufacturers and groups them their own. The strategy has facilitated ASOS’ growth as one of the leading online fashion destinations.
Supply Chain
ASOS has a unique and strategic supply chain, which emanates from an exceptional and tactical approach. It sources from approximately 500 factories in 28 nations and the brand has invested in proper distribution technologies (ASOS, 2019). First, it thoroughly monitors transportation management processes. Then, it sends its customers texts or emails in the day of the delivery, with a preliminary one-hour delivery time slot. Consumers can also track their procurements through online mapping by web or mobile application (Koumbis, 2019). Incorporating technology into operations and processes has helped ASOS to upsurge its revenues significantly.
Marketing Initiative
ASOS has a brilliant influencer marketing initiative: a group known as ASOS Insiders of 20-year-old millennial who market the brand’s fashionable outfits through social media and other online channels. Among the trending terms currently under this initiative is OOTD, which stands for Outfit Of The Day. On Instagram, clients can see the codes of the merchandizes in the image captions (ASOS, 2019). Through tracked or curated links, customers can subsequently reach ASOS’ website. Even in Pinterest, ASOS’ photos are linked directly to its website (Koumbis, 2019). Thu, the ASOS Insiders is one of its greatest strengths in marketing.
Free shipping
ASOS has a superb global shipping strategy, which entails free shipment of procurements particularly for international buyers. With many consumers looking for affordability, this initiative have attracted many clients even the trustees of ASOS’ competitors especially overseas subsequently turning the brand into a truly global business (Koumbis, 2019). With these massive achievements, there is no better way of explain the free shipping strategy than a strength of ASOS.
Weaknesses of ASOS
Research and Development
ASOS’ investment in Research and Development is industry’s average. Consequently, ASOS lags behind its leading competitors in terms of innovation. The firm has come across as a matured brand that places commodities on its website, when it is already testing and working in the market.
Unnecessary Outlays
While the free shipping initiative has some positive, it is also ASOS’ core unnecessary outlay. According to Gipson (2014), ASOS’ share value dropped when free shipping commenced hitting its gross margins, which saw it halt the program, but it has since resumed it. As far as the free cost is beneficial, therefore, it is also wasteful.
Innovation
Innovation is one the areas that ASOS is performing poorly in relation to its competitors. The brand should invest more in technology to advance its purchaser experience (Gipson, 2014). It should intensify its data analytics use, for instance, to improve its slow-down in sales growth.
Opportunities of ASOS
Changing Trends
There are new trends in the clothing industry and transformations in the consumer buying behavior, which can open up new markets for ASOS. The celebrity culture, for instance, means that 41% of ASOS’ products are at most, 3 months old. The shifting trends and swelling demand allow the brand to obtain around 2500 to 7000 new products weekly (Senker, 2016). ASOS can diversify this into newer merchandise groups and offerings.
Marketing
Through proper marketing expand their consumer base and increase traffic. As such, the brand is planning on a TV advert campaign in France, use of real-time data from social media, blogs, and websites, and executing the insights in driving the marketing and pricing decisions to expand its customer base according to Senker (2016). With proper marketing, as such, it is only a matter of time before ASOS penetrates many new markets.
Expansion
ASOS can expand its inventory to include more products, brands, and categories since clienteles love variety. The brand can also establish itself in beauty. It is already making good pushes in the US with the new application that sees consumers shop and access extra brand content. The app could help ASOS penetrate deeper the US market (Senker, 2016). The possibility comes in a time when the brand has also established a warehouse in the US for proper shipping.
Threats of ASOS
Competition
ASOS is vulnerable to stiff competition, which may bring it down. First, it needs to improve its marketing in terms of positioning and unique selling propositions because, currently, they are vaguely defined. One of its main rival threats is Bohol, which add more than 100 new styles daily giving customer’s better options. Bohol also has a 28-day returns offer for their customers. Another player is Nbrown who has a digital strategy, which comprises an Amazon partnership. Nbrown has a substantial share in the ladies wear segment. Another threat is Amazon’s Prime Wardrobe, which provides increasingly greater discounts than ASOS (Koumbis, 2019). Competition in this industry will only get tougher and ASOS should device proper strategies of staying ahead.
Economic factors
The World Trade Organizations administer the trade rule and they took in all the decisions to facilitate the producers of goods and services to conduct their transactions effectively and successfully. ASOS has a responsibility to adhere to the agreements that are typically trade wars, which might hike the prices of products. Besides Brexit, Koumbis (2019) illustrates that the agreements have caused reduced the movement of skilled labor in the UK. Probably, it might cause the same trend in other regions; hence, ASOS needs to have a plan for all the scenarios the political and economic conditions might bring in play.
Part 2
SWOT Analysis of ASOS Chart
SWOT Analysis of ASOS Chart
INTERNALS ASSESSMENT OF ASOS
STRENGTHS OF ASOS
· Strong brand image
· Vast assortment of products and designs
· Unique and strategic supply chain, which emanates from an exceptional and tactical approach
· ASOS has a brilliant influencer marketing initiative
· Superb global shipping strategy
OPPORTUNITIES
· Changing trends in the clothing industry and transformations in the consumer buying behavior, which can open up new markets for ASOS
· Through proper marketing expand their consumer base and increase traffic.
· Possible expansion of inventory to include more products, brands, and categories since clienteles love variety
THREATS
· ASOS is vulnerable to stiff competition, which may bring it down
· The World Trade Organizations is associated with negative political and economic conditions that might bring down ASOS when they materialize
INTERNALS ASSESSMENT OF ASOS
WEAKNESSES OF ASOS
· Poor and inadequent investment in research and development
· Unnecessary Outlays
· Poor and inadequate innovations
References
ASOS, (2019). The ASOS story. Retrieved from https://www.asosplc.com/asos-story
Gipson, L. (2014). Report and evaluation of the ASOS website. Norderstedt: GRIN Verlag.
Koumbis, D. I. M. I. T. R. I. (2019). Fashion retailing: from managing to merchandising. S.L.: Bloomsbury Visual Arts.
Senker, C. (2016). ASOS: The story behind the iconic business. London: Wayland.
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