Effect of Technology and Social Media on ASOS Business Strategies

This report analyses the impact of technology and social media on ASOS business strategies. It critically analyses the role of technology and social media on its marketing activities and business transactions. It also discusses the advantages and risks of ASOS compared to other companies.

SG1016 Foundation in Digital Enterprise
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Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
1) Explore the effect of technology and social media on ASOS business strategies.............3
Critically analyse the role of technology and social media on its marketing activities and
business transactions..............................................................................................................4
3) What advantages ASOS has over the other company it its business activities..................5
4) What risks ASOS has compared to the other company.....................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Introduction
Digital technology has significantly changed the manner in which business organization perform
their roles and responsibilities. Digital transformation has significantly improve profitability and
provide opportunities to business organization to boost their growth and turn consumer
satisfaction into loyalty (Chaffey and Ellis-Chadwick, 2019). In today’s business world digital
technology plays important role as it provides advanced and rapid innovation opportunity to
business and enhance connectivity access to trade and public services etc. The present report
include case study analysis of ASOS which is operating as a British online fashion and cosmetic
retailer. The report include discussion on effect of technology in social media on the selected
company business. Along with the role of technology and social media on company marketing
activities as well as business transaction.
Main Body
1) Explore the effect of technology and social media on ASOS business strategies
Implementation of technology in modern business environment is crucial and core business
strategy which provide opportunity to organization to manage resources and utilise them towards
business growth by implementing information system and can have significant impact in terms
of reducing business cost. With the help of this organization can have advantage of reduce
business costs which will help them to assure more profitability. Furthermore it has been
analysed that social media is also having positive impact on ASOS business strategy, as it helps
in improving communication. With the help of this company can connect with consumers and
other stakeholders through texting, email, websites and personal digital application, that will
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further help in improving organizational communication with customers (Li, Larimo and
Leonidou, 2021). It also helps in developing stronger relationship ties with consumers that will
benefit organization to retain time for longer period of time.
It has been analysed that information technology allow organization to duly reach to new
economic market and offer their product and services in the local, regional, national and
international markets in an effective manner. Furthermore it has been evaluated that technology
in social media also have positive effect on a source business strategy, as with the help of this
company can undertake better decision making with the help of consideration to outsource
business function to other businesses in national and international business environment. With
the help of this company can keep their operating cost low and can satisfy customers in effective
manner. Thus, according to the above mentioned analysis it has been evaluated that the
advancement of digital technology and social media has significantly transformed the business
strategies, as it provides them an important and effective digital marketing opportunity through
which they can connect with customers in effective manner. It offers company to have wider
base of customer segments through which they can assure long term growth and profitability in
industry. With the help of this organization can significantly assure providing maximum level of
satisfaction to customers.
Critically analyse the role of technology and social media on its marketing activities and business
transactions
In today’s business world social media is playing crucial role which allow organization to offer
their product services in brand to customers. There are different type of social media platforms
such as Facebook, Instagram, Twitter etc that provide organization low cost tool to utilise
technology in order to take advantage of videos, images, posts, words etc to communicate
organization message to consumers. With the help of taking advantage of social media
organization can have benefit in terms of creating relationship with consumers and will also
benefit organizations to be consistent and differentiate company from others in the market
segment. Furthermore it has been analysed that social media is playing important role on
marketing activities of company as it benefits them to conduct cost effective marketing. Social
media marketing is one of the most important platform today’s business world which allow
organization to interact with customers with the help of regular Facebook updates etc. With the
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help of developing these marketing strategies organization have benefit in terms of improve
responsiveness effective marketing through which company can engage with customers in
affordable manner. Along with this it has been analysed that social media marketing has
gradually involved in order to and one of the most important aspect of every individual life. This
is a great platform that will benefit organization to influence mindset of current and potential
customers that will help them to enhance overall sales and profitability in industry (Sivarajah and
Mahroof, Ebrahim, 2020). With the help of social media market companies can influence
consumers needs and wants by providing them appropriate information about the products and
services in attractive manner.
While if it is talked about technology it has been analysed that technologies has
dramatically evolved the manner and create highly competitive market segment, in this in order
to stay one step ahead of other competitors in the market segment it is important for organization
to understand the role of technology in business transaction and marketing. With the help of this
organization can assure greater competitive edge in market segment with the help of marketing
practices like SEO. Technology allow business organization to offer information to customers in
an integrated manner. With the help of this organization can influence consumers in attractive
way and can enhance overall business group and profitability in industry.
3) What advantages ASOS has over the other company it its business activities
ASOS us operating its roles and responsibility as a British online fashion and cosmetic retailer
this organization was founded in the year 2000 in London and mainly aim at young adults. The
organization with the help of their website and taking use of digital tools and technology offer
products and services in different countries around the world (Alaimo, Kallinikos and
Valderrama, 2020). Organization under take advantage of various digital marketing strategies
which benefits them to offer their products like accessories, shoes, clothing, beauty, etc. to
existing customer base and attract potential consumers. In order to overcome competitive rivalry
in industry ASOS undertake use of attractive social media marketing and digital marketing
practices which benefits them to enhance their competitive rivalry over other rivals and also
allow them to enhance overall profitability in industry. While on the other hand House of Fraser
is operating as a British department store and offer wide range of products and services such as
cosmetic, clothing, footwear, jewellery, perfume, toys to customers (Diba, Vella and Abratt,
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2019). Organization was founded in the year 1849 and headquartered in London, England United
Kingdom. It has been analysed that ASOS management with the help of this is having
advantages in terms of greater consumer reach, cost effective marketing with benefit
organization to assure more profitability and maximum satisfaction of customers.
4) What risks ASOS has compared to the other company
ASOS undertake use of various digital tools and techniques company take advantage of
social media and digital market in order to reach to customers and further identify their needs
and demands. Furthermore it has been analysed that company invest more on determining the
current digital tools and trends in industry and further implement them in order to generate more
competitive rivalry (Qalati, Khan and Anwar, 2021). However it has been analysed that as
comparatively to House of Fraser ASOS invest more on implementation of social media and
digital marketing. However this is cost effective marketing operations which allow company to
generate higher profitability but it has greater risk that can affect ASOS profitability. It has been
analysed that s is having risk associated to cyber attack security breach etcetera as compared to
House of Fraser that can create negative image of company in front of consumers.
Conclusion
According to the abovementioned report it has been concluded that in order to sustain in this
competitive business environment digital technology plays important role. This allow
organization to enhance growth and sustainability in industry along with offering maximum
satisfaction to customers. It is important for organization to understand the role of social media
marketing and digital technology, as this will allow them to sustain in this modern business
world. However, there are certain risks such a cyber attack, security breach etc. that can affect
company profitability. In this it is important for organisations to undertake practices like risk
management and implement them in order to undertake use of technology in effective manner.
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References
Books and Journals
Agnihotri, R., 2020. Social media, customer engagement, and sales organizations: A research
agenda. Industrial Marketing Management, 90, pp.291-299.
Alaimo, C., Kallinikos, J. and Valderrama, E., 2020. Platforms as service ecosystems: Lessons
from social media. Journal of Information Technology, 35(1), pp.25-48.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing: strategy, implementation &
practice. Pearson uk.
Diba, H., Vella, J.M. and Abratt, R., 2019. Social media influence on the B2B buying
process. Journal of Business & Industrial Marketing.
Ebrahim, R.S., 2020. The role of trust in understanding the impact of social media marketing on
brand equity and brand loyalty. Journal of Relationship Marketing, 19(4), pp.287-308.
Li, F., Larimo, J. and Leonidou, L.C., 2021. Social media marketing strategy: definition,
conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of
Marketing Science, 49(1), pp.51-70.
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Qalati, S.A., Yuan, L.W., Khan, M.A.S. and Anwar, F., 2021. A mediated model on the adoption
of social media and SMEs’ performance in developing countries. Technology in
Society, 64, p.101513.
Sivarajah, U., Irani, Z., Gupta, S. and Mahroof, K., 2020. Role of big data and social media
analytics for business to business sustainability: A participatory web context. Industrial
Marketing Management, 86, pp.163-179.
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