Research & Analysis of Development Opportunities for Asos.Com
TERMS OF REFERENCE:
On behalf of “Ure, Avin, Alaff” marketing consultants that specialise in strategy and market development my task is to research and analyse the development opportunities for ASOS.com (AS Seen On Screen) in this report. (Theory & practice Module Guide, p 22)
EXECUTIVE SUMMARY:
ASOS over ten years has become the market leader in the UK online fashion world with reported turnover of £165 m in 2009. They have developed a very competitive edge in fashion retailing through innovation, various delivery options, excellent communication with its customers, well maintained website and expansion of their trade internationally.
Until September 2008 ASOS as many other businesses benefited from economic boom and increased consumer spending, however it all came to an end after US mortgage market had collapsed. As a result of global financial crisis UK government has tried to protect businesses by reducing VAT (value added tax) to 15%, decreasing interest rates to 1% and providing £500 billion rescue money. Inflation during recession in 2009 has had a negative impact on retail industry’s domestic trade however weak pound has had a positive impact on international trade. A cult of celebrity has had a major impact on the development of fashion industry as a whole. Also technological development has played a big role in development of E-commerce in the UK and worldwide
There are three main threats rising before ASOS: competition, dependence on IT system and infrastructure (storage, delivery) and foreign exchange rates.
Mobile application services, innovation, international expansion and advertising is creates opportunity for ASOS to further expand their business.
Today competition in fashion retail sector is very high, this results in power of suppliers being low and bargaining power of customer being high. Also the level of substitutes is very high.
To continue successful growth of the business ASOS needs, to further develop their services, expand
On behalf of “Ure, Avin, Alaff” marketing consultants that specialise in strategy and market development my task is to research and analyse the development opportunities for ASOS.com (AS Seen On Screen) in this report. (Theory & practice Module Guide, p 22)
EXECUTIVE SUMMARY:
ASOS over ten years has become the market leader in the UK online fashion world with reported turnover of £165 m in 2009. They have developed a very competitive edge in fashion retailing through innovation, various delivery options, excellent communication with its customers, well maintained website and expansion of their trade internationally.
Until September 2008 ASOS as many other businesses benefited from economic boom and increased consumer spending, however it all came to an end after US mortgage market had collapsed. As a result of global financial crisis UK government has tried to protect businesses by reducing VAT (value added tax) to 15%, decreasing interest rates to 1% and providing £500 billion rescue money. Inflation during recession in 2009 has had a negative impact on retail industry’s domestic trade however weak pound has had a positive impact on international trade. A cult of celebrity has had a major impact on the development of fashion industry as a whole. Also technological development has played a big role in development of E-commerce in the UK and worldwide
There are three main threats rising before ASOS: competition, dependence on IT system and infrastructure (storage, delivery) and foreign exchange rates.
Mobile application services, innovation, international expansion and advertising is creates opportunity for ASOS to further expand their business.
Today competition in fashion retail sector is very high, this results in power of suppliers being low and bargaining power of customer being high. Also the level of substitutes is very high.
To continue successful growth of the business ASOS needs, to further develop their services, expand