ASOS: STRATEGIC GROWTH IN THE FASHION

RETAIL INDUSTRY
A Case Study
Researchers:

John Henry Momongan Bbylyn Matawa

Eljie Mercede Montecalvo Richard Ngojo Monsales
Honey Joy Mulle
 In the Viewpoint of:
Nick Beighton, CEO of ASOS (2015 –
PRESENT).
INTRODUCTION
TO
 Statement of the
Problem:

The case study presents the compelling influences of the outside forces
that heavily affect the progress of a certain business enterprise. This case
study aims to provide a solution to the following question:

How can Asos.com sustain its growth despite the rapid surge in demand
and shift in market trends?
 Objectives:
Short Range
-Improve logistical efficiency to
meet customer demand, increase
customer value, and boost sales
volume. Target for achieving this
objective must be on or before
Dec. 1, 2022.
Long Range
- To provide competitive products
and services conforming to
customer’s needs and
expectations. Asos.com aims to
become the number one go-to
destination for fashion-loving
individual on or before 2038.
 SWOT Analysis:

Strengths Weaknesses

-UK’s leading online fashion store
for men and women.
-Traded on the (AIM) Alternative
Investment Market.
-Asos uses market segmentation.
-Struggle to meet the demand and
provide logistics.
-Lack of staffs to keep up with
seasonal surges especially in
Holidays.
-Asos uses market segmentation.
 SWOT Analysis:

Opportunities Threats

-Shift to sustainable fashion. -Competitors

-Capitalize on the internet-based -Environmental Impact
retail. -Shift in Market Trend
-Domestic and International
Expansion.
 Alternative Courses
of Action

In order to keep up with the domestic demand in the United Kingdom

and address the issue of the lack of staffs and delays in logistics, an
acquisition of a logistics company to bolster the delivery services of
the company can be timely and relevant.
ADVANTAGE/S DISADVANTAGE/S
-Bolster the delivery capabilities. -Expensive
-Strengthen domestic dominance. -Risky
-Maintain premium services.
 Alternative Courses
of Action

Aligning ourselves with the data provided, we see that dominance in

the domestic market is a given but plenty of opportunities are waiting
outside the borders. Expanding internationally can be seen as the next
big step for the company.
ADVANTAGE/S DISADVANTAGE/S
-Increased business growth. -Increased capital requirement.
-Create economies of scale.
-Diversifying increase protection.
 Alternative Courses
of Action

Usual peak season of sales are situated on holidays and the company
struggles to accommodate and store the orders. Investing in a new
warehouse can help alleviate the situation.

ADVANTAGE/S DISADVANTAGE/S
-Increase in capacity. -Cost requirement rise.
-Promote business expansion.
 Recommendation:

Aligning ourselves with the data provided, we see that dominance in

the domestic market is a given but plenty of opportunities are waiting
outside the borders. Expanding internationally can be seen as the next
big step for the company.
 Conclusion:

Asos.com is the UK’s leading online fashion store for men and
women. Launched in 2000, the online retailer targets fashion conscious
16-34 years old. Asos.com is a public limited company (PLC) and its shares
are traded on the Alternative Investment Market (AIM), which is a part of
the London Stock Exchange. The main objective of ASOS is to sustain its
growth despite the rapid surge in demand and shift in market trend by
expanding internationally and increasing its services and logistics. ASOS
consider it as an opportunity to capitalize on the internet-base retail
business. With ASOS’s plan to expand internationally and further sustain
its rapid growth, ASOS continues to transform and modernize the fashion
retail industry.
Detailed Action Plan:
Action Timeline Cost Advantages
(UK
Pound)
Conduct a meeting July 1,500 Builds deep bonds with members and
to discuss encourage them to be open to
strategies on how suggestions related to the agenda.
to keep the
business growing.

Perform Demand Quarterly 12, 000 This will allow the company to determine
Analysis which products are popular and in
demand, as well as how to meet the
demands of the majority.

Offer and provide After the 1, 000, 000 This will allow the company to maintain
products and result of the its growth while also allowing it to keep
services in demand Demand up with the trends and sell variety of
to the market. Analysis products.

Develop and When 500, 000 This will enable the company to expand
improve websites opportunity internationally.
in other countries. comes