Global Strategic Management: ASOS Case Study

Introdcution: ASOS: Global Strategic Management Strategies

Global strategic management provides how business managers contribute in gaining competitive edge by making effective decisions. ASOS is retailer which offers wide range of trendy clothes around the world. The report will shed light on internal and external environment of the organization which is managed by the CEO of ASOS. The business and corporate level strategies that will get in use organization to enhance the organizational performance. The theories that will get in use such as Michael porter, blue ocean strategy, some strategic planning tools like SWOT, Global expansion, supply chain management, digital security. Further, report also depicts contemporary issues associated with the different level of strategy. It also entails strategies which firm should employ to build and sustain competitive position at marketplace.

A. External And Internal Environment Analysis

Internal Analysis: Swot Analysis

Strengths

• ASOS is one of the famous international clothing brands, it provides over 85,000 latest fashion clothes.
• ASOS has cutting edge technology, which offers a smooth experience of purchasing.
• It has strong loyalty based customers in the United Kingdom.
• Due to its quickly adaptable structure and its supply chain network permits changing fashion.
• The brand is not reliant upon only one segment in marketplace, it has broad international customer base.

Weaknesses

• ASOS continuously having strong rivalry from the players which are global retailer and E-commercial platforms like all giants, Alibaba etc.
• The brand is dependent on number of countries due to it is revenue like USA, UK and Europe (ASOS, 2023). The brand doesn't have any stores in Asian regions.
• ASOS falls under the premium segment category, thus the products which are available on the websites their prices are quite high as compared to the other brands.
• The company has their biggest dependency on the third parties like logistics, another fashion and supplier's brand. This absence of control over other parties they are comparing on efficiency, operations and excellence.

Opportunities

• In the fashionable era, people are more likely to spend their money on trendy clothes and unique fashion. The brand has the biggest opportunity to boost a sort of equipment, accessories and attire.
• By employing the latest technology company might increase the shopping experience, such as try-ons which are digitally.
• The brand can expand more in new market places which are emerging.
• It is developing new cloud contract with Microsoft which would come up with more than 900 brands globally for people who loves fashion.
• By doing collaboration with the influencer and inclusion of celebrities would be beneficial to attract more customers.

Threats

• Apart from ASOS there are retailer exist in physical and digital both domains such as Nbrown and Bohol having more brand image than ASOS. These brands increase customers via foot traffics and with the online presence (ASOS SWOT Analysis, 2023).
• ASOS was closed for more than 6 weeks in 2005 because of fuel depot explosion at Buncefield which ended up with £5m drop of stock. It also has stop selling the kids wear in the year 2010 that has damaged the young adult market.
• The core of sell arises from the products; meanwhile they are having products which are limited in cosmetics and fashion, by declining sale of the product may lead to decline in income.
• Number of rivals is offering the fashion and cosmetic categories, which is impossible to differentiate. Clients are very concern about the fashion category so attracting their demands is toughest task.

Pestel Analysis

B. Examining The Business And Corporate Level Strategies

ASOS has been taking actions to develop economies and make sure the level of sustainability level of revenue in the market, meanwhile concentrating on key markets. This is dedicated towards enhancing profitability, supply chain productivities and reduce the extra cost across the company.

Business Level Strategies

• Fast fashion: The organization is offering trendy collections and focus on wide range of clothing which is unique and fashionable. By offering number of products, it can entice the decision making of customers. Moreover, now customers are looking for the trendy and comfortable clothes at the best price.
• Market segmentation: ASOS is focusing on target audience which is above twenty and falling under the category of young adults. Hence, focus is placed by the organization on fulfilling their needs. This is the main targeted age which follows the most fashion brands (Johnson et al 2020). The young age is the ASOS's main motive to satisfy and accomplish their demands.
• Online platform: ASOS is offering user friendly online platform with wide range of products, which includes virtual try on as well. This is important in the digital world to brand's online presence among the other competitors. By providing online shopping platform company can cater the need of customers who are not having time for on store shopping. It can save the time of customers and ultimately contributes in the company's sales.

Corporate Level Strategies

• Supply chain management: An excellent supply chain strategy offers timely delivery and products which are highly satisfying. Customers can be attracted with the timely delivered products and meanwhile beneficial to improve the customer's loyalty.
• Global expansion: The brand is expanding its operations worldwide to entering in numerous international markets to increase clients. This is the biggest positive contribution to improve their brand at global level (Seifzadeh and Rowe 2019). However, there are many brands which can be the biggest rivals of the ASOS like H&M, Zara etc.
• Brand partnership: The brand is collaborating with famous brands to improve its brand's image globally and market presence. This is best way to improve the brand image among competition.

Referring above aspect, it can be stated that all the strategies collectively contribute in organization's productivity and profitability. By strengthening supply chain and related aspects firm can create high customer base and thereby gain competitive edge.

C. The Strategic Tools/ Techniques / Models Used By The Ceo Of Asos Plc.

• Porter's generic: The organization has used differentiation method to offer wide range of products with the excellent quality. According to the Michael Porter, this brand has significant presence in the different market because its main target is to offer latest and trendy products. This method of Michael porter's defines the global expansion challenge which can be put impact in the different nations where the brand can face cultural differences.
• Blue Ocean strategy: ASOS offers unique range of online experience of selling. Moreover, the organization is focusing on the online try-ons and provides recommendations according to the individual's personality (Samrin, Irawa and Se 2019). According to Blue Ocean strategy company needs continues investment in technology. This can be easy for customers to try products and by having recommendation client will easily know what is best for them.
• SWOT Analysis: Through SWOT analysis ASOS identified the strengths, weaknesses, opportunities and threats of the organization. This is beneficial for understanding condition of organization. By doing this it easy to create strategic planning, those improve the weakness and develop the strengths. This can minimise the threats which occurs in the continues bases.
• Global expansionstrategy: By using global expansion strategy, it offers understating about the issues regarding the diverse market situation. This can be helpful in managing differences in culture and adhere with the regulations. Improve the understanding about the issues that can influence the outcome of organization's international strategies.
• Supply chain management: The effective supply chain management is crucial for ASOS's operations (Debruyne and Tackx, 2019). However, the issue caused by Covid- 19 has impacted the delivery of products timely, which has leaded to customer's un- satisfaction and sale loss.
• Digital security: Prominent online shopping platform has been introduced by the firm for providing customers with the smooth shopping experience. Due to it ASOS collects customer's information, which needs good customer privacy.
• Sustainability: By using manufacturing eco-friendly products which can improve the sustainable practices with the offering of eco-friendly products it is beneficial to improve the environment, which may put impact on clients to reduce the carbon footprint. The sustainability is the main issues of the clothing brand.

D. Critically Analysing And Evaluate The Different Contemporary Issues In Strategy, Clearly Synthesizing Between The Different Levels Of Strategy

ASOS' CEO has faced many contemporary issues critical analysis and evaluation shows the synthesis between the different levels of strategy.

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• Business level strategy: Organization's differentiation strategy is linked with its RBV (resource based view), because it aims to control resources and enhance viable advantages. ASOS's online presence, supply chain is effectualness to its determination. Moreover, issues occur about the nourishing and preserving the resources. It is about business level strategy gaining the sustainable benefits over competitors. Resources are crucial for every organization which is based on the company's individual resources and help in providing advantages that are competitive.
• Functional level strategy: ASOS is focusing on adopting new technologies including effective try-ons with the personalise recommendations to the customer to improve their styling and understand about the latest trends (3 Types of Business-Level Strategies, 2023). This can be new features better than other rivals to improve the brand's position. It is aligned with the strategies about the innovation and technology. In order to cope up with this, ASOS needs to invest in the latest technology. This further helps in improving the customer' satisfaction and market share as well. By on-going innovation and updates in technology is effective for the organization to boost the brand image on the online platform as well.
• Corporate level strategy: ASOS's link with the blue ocean strategy shows the best online experience with the quality of products. By providing an online platform with the multiple kinds of virtual try-ons has shown the exclusive market place. This kind of approach needs continues investment in such kinds of marketplace. The issues depends on finding out the new values and be in competitions (Fuertes et al 2020). These methods can be more effective if the innovations are on-going bases which can be more efficient. This strategy allows the brand to cover the main strengths and changes and develop them in leading digital brand.

E. Developing And Designing Strategic Planning For Asos Plc

CEO of ASOS has created, developed a successful strategic planning to overcome the issues which put impacts on the organization. By using SOTAC model examining how ASOS's CEO developed the strategic planning.

• Situation analysis: As according to SOTAC model, The situation of the ASOS has start with the current situation, the briefly analysis of the environmental factors internal and external shows the market trends, organization' s strengths and weaknesses that are crucial for the environment (Galpin, 2019). The analysis is base of the decision making of the organization. CEO has keep the weaknesses in mind and made the decisions for the organization.
• Objectives: In accordance to the SOSTAC model, The CEO of the organization sets the transparent goals and objectives for organizational growth & success. The settled goals are created according to the revenue, growth, innovation and updated technologies. These objectives have the clear vision and mission to the organization which can create the best strategies for the organization.
• Strategy: Align with the SOSTAC model, the analysing the situation and clear goals, CEO would have created strong strategies for the organization. This includes the decision making about the position in market, revenue growth and resource divisions (Ahmed et al 2023). The strategies might include smooth online shopping, cash less experience, collaboration with the celebrities and influencers and build up in international market.
• Tactics: In accordance to the SOSTAC model, Tactics are based on a strategy which is created by the CEO, team of strategic planning. The organization would have created the in-depth tactics for launch the new products, technology innovation and other plans. The tactics can involve the marketing by influencers, collaboration with the other fashion brands. By the implementation of the developed tactics ASOS can boost the brand's strengths and reduce the weaknesses in order to minimise the risk in the future. These tactics is crucial for bright future of the ASOS and its brand image.
• Action: As SOSTAC model, after creating the tactics and strategies it needs to be implemented in positive action. The CEO needs to make sure that the tactics and strategies need to be convey in the effective way (SOSTAC marketing planning model guide and the RACE Growth System, 2022). It comprises directing in different division in the organization, by creating deadlines, KPIS, to better control over it.
• Control: In the context to the SOSTAC model, the changes which are being done by the CEO are regularly determined by KPIs, informational decisions, regular feedbacks from the employees and customers. It can be effective in controlling the modifications aligned with tactics and strategies. Thus, by taking corrective measures within suitable time frame firm can improve performance to the significant level.

F. Recommendations

• ASOS should focus on internal existence or responsibility, which is mainly about the cultural nuances. Hence, it should gain knowledge about cultures of different countries, market strategies to fulfil the demand of international clientele base.
• The organization ought to increase the sustainability practices; it should invest in environmental friendly deeds, which can decrease the pollution, carbon footprint which is beneficial for everyone. By undertaking eco-friendly practices ASOS can enhance the customer base because now majority of people make focus on sustainable practices.
• By on-going investment in technology and digital innovation, the organization can enhance the online presence. In this regard, by doing advertising through social media platforms, collaboration with the influencers can be beneficial in improving the revenue and attract the clients with the e- commerce.
• By focusing on the fashion and trends while offering a diverse range of products, which can be beneficial to go with the vogue in the trendy time. ASOS can collaborate with the lifestyle brands with the eco- friendly products.
• By improving the supply chain management, relations with the suppliers and stakeholders. This will help in timely deliveries and improve the satisfaction of the customers and reduce the effect on supply chain.
• By giving regular training sessions to the employees that improve the skills, every employee should know about the client's requirement. Regular training programs can improve the well- being of customers.
• By identifying the regular trends and preference of customers, can help in manufacturing the latest products. It also helps in fulfilling the demand and preferences of customers.
• By adhering with to the security and privacy laws & regulations ASOS can build trust among the customers and thereby improve the loyalty as well.
• To sustain the competitive position, ASOS needs to focus on products quality, by providing excellent quality with the pocket friendly prices; it can improve the revenue and profit. This is good for the brand's position in the rivalry marketplace.
• By providing products which are trendy and sustainable friendly, this can promote recycling and teach customers about the sustainable friendly practices. Communicate about the impacts on environment improve the understanding about the environment among customers.
• By improving the clientele base which can be beneficial to improve the revenue of the organization and provide profit to the company in the major source of the clientele base in the contact of the customers.

Conclusion

By concluding the report CEO's leadership dynamics, the internal and external factors highlighted the issues about the management of ASOS plc. By examining organization performance develop deeper insight into the adaptable approaches which is demonstrated by the strategies of Michael porter. Along with this, some strategic planning and blue ocean strategy showcased positive approaches for the growth in the market. By examining the business and corporate level strategies have develop the positive contribution of the organization. By using the strategic tool SOSTAC established the CEO's strategic planning for the enhancement in technology, innovation and expand internationally. ASOS position should focus on the new innovations and adoptions of technology to improve the eco-friendly practices, maintain the clientele base. The recommendations are provided for the future success and sustain the leadership in the global market, In order to achieve the clear vision and gaols.

References

Books And Journals

• Ahmed, J.U., Rahman, U., Ahmed, A. and Sharif, R., 2023. Marketing Strategies for the UK-Based Online Fashion Retailer Boohoo. SAGE Publications: SAGE Business Cases Originals.
• Debruyne, M. and Tackx, K., 2019. Customer innovation: Delivering a customer-led strategy for sustainable growth. Kogan Page Publishers
• Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review-descriptive. Journal of Engineering, 2020, pp.1-21.
• Galpin, T., 2019. Strategy beyond the business unit level: corporate parenting in focus. Journal of Business Strategy, 40(3), pp.43-51.
• Johnson, J., Whittington, R., Regnér, P., Angwin, D., Johnson, G. and Scholes, K., 2020. Exploring strategy. Pearson UK.
• Romero Toural, M., 2020. Factores determinantes de la internacionalización a través del e-commerce en Asia: el caso de ASOS en China.
• Samrin, S., Irawan, M. and Se, M., 2019. Analisis Blue Ocean Strategy Bagi Industri Kerajinan Di Kota Tanjung Balai. Jurnal Manajemen, 11(1), pp.93-100.
• Seifzadeh, P. and Rowe, W.G., 2019. The role of corporate controls and business-level strategy in business unit performance. Journal of Strategy and Management, 12(3), pp.364-381.

Online

• 3 Types of Business-Level Strategies. 2023. Online. Available through: < https://www.indeed.com/career-advice/career-development/business-level-strategy>.
• ASOS SWOT Analysis. 2023. Online. Available through: < https://thestrategystory.com/blog/asos-swot-analysis/>.
• ASOS. 2023. Online. Available through: <https://www.asosplc.com/investor-relations/>.
• SOSTAC marketing planning model guide and the RACE Growth System. 2022. Online. Available through: <https://www.smartinsights.com/digital-marketing-strategy/sostac-model/.>.