Digital Business: ASOS Plc and the Impact of Digital Methods

This report explores the concept of digital business and its impact on ASOS Plc, a leading cosmetic and clothing brand. It discusses the modes of operation, market segment, mission and vision, and key factors for business growth. The report also examines the influence of external factors on digital business operations.

Digital Business

Contents
Introduction......................................................................................................................................3
Digital Business......................................................................................................................3
Digital business and traditional business models...................................................................3
Factors related with digital business.......................................................................................4
MAIN BODY...................................................................................................................................4
About ASOS Plc:....................................................................................................................4
Mode of operation..................................................................................................................5
Market Segment......................................................................................................................5
Mission and Vision.................................................................................................................5
Key factors related with growth of business..........................................................................6
Impact of the external factors on the digital business operations...........................................7
CONCLUSION................................................................................................................................8
References......................................................................................................................................10

Introduction
Digital business exists as a subset of E-commerce platform that is based on technology and
leads entrepreneurs to generate more value in the market. The main aim of digital business is to
generate more effective business model in order to increase customer experience. Along with this
it formulates new business design by representing digital and physical mode of business. This
report is written from the perspective of ASOS Plc. They operate their business in the cosmetic
industry through the mode of E-commerce platform or digital method in order to target young
adults (Westerman, Bonnet and McAfee, 2014). Further, this report highlights on description of
digital business, modes of operations and factors for the sustainability of a business.
Digital Business
These terms comprises of those factors which are related with digital brands and are
altering business factors by the implementation of digital methods. The main aim of digital
business is to gain competitive edge by developing a unique and effective combination between
physical and digital resources. In the context of ASOS Plc, management operate their business in
clothing industry as well as cosmetic industry. So with the implementation of digital methods it
works as a positive factor for organisation because it leads management, to gain competitive
edge from the rivals which are performing their business in similar industry.
Digital business and traditional business models
Digital form of business for generating more value leads the management for the
development of organisation that is related with business model. The major benefit to implement
digital modes is to develop positive factor by which organisation is able to get high prices from
the buyers through providing high consumption value in the products. On the other side,
exchange and transaction between buyer and seller on manual basis is refers as traditional
method for business. Moreover, the difference between on this is mention as underneath.
 Cost- In order to start a business with the utilisation of digital technology, management
can invest small amount of money in compare to traditional business. This results it is
easy for management to enhance their profitability by reducing various cost such as rent,
staff utilities and many more.
 Consumer convenience- The major benefit which is earned by the management of
ASOS Plc is that it is easy for consumers to approach their products from their

convenient place. It results more benefits are earned by the management to enhance
business size and customer base with the implement of easy modes of technology.
Factors related with digital business
In order to determine the positive factor of digital business, an example related with
decrease in profits of Arcadia group is selected. This determines that the profit for the year 2017
was fallen to £124.1m as compare to last year which was more than £215.2m. It governs that the
sale of products was decreases with £1 billion. The major reason behind the impact of such huge
decrease in profits is due to online sales. It denotes that it is mandatory for Arcadia group to
implement digital business model in all the departments and functions of organisation
(Westerman, Bonnet and McAfee, 2014). On the other side, impact of digital business is seen in
the auto sector business. So with the implement of Technology factor high advantageous aspects
are gained by ASOS Plc to deliver their goods in effective manner. Moreover, in the present
scenario with the use of digital modes ASOS recognise and develop a strong brand image in the
overall market of UK.
MAIN BODY
About ASOS Plc:
Management of the ASOS redefined their cosmetic and clothing industry via its marketing
and advertising. There are several core values are implemented by the management in order to
perform their function effectively such as democracy and creativity. Along, with this
management also provides training and guidance to all employees who are engage in
organisation to achieve goals and objective of ASOS. Digital platform provides various sources
due to which it is easy for customers to select their products without the involvement of any kind
of judgement. Along with this, ASOS websites also provides a platform to customers in which
buyer drop their own ideas and style. They also collaborate with governmental and non-
governmental suppliers to complete their work as per the standard of society and environment.
This determines ASOS perform its work in ethical way due to which better results and long term
policies are implemented by the organisation (Sousa and Rocha, 2019). In the last, business also
acknowledged their carbon emission by reducing the waste and enhance implement of recyclable
products.

Mode of operation
In the initial stage, ASOS operated their business as a local brand. Whereas, in the present
scenario, with the utilisation of appropriate tool such as digital technology. It is easy for
management to approach and reached towards large number of customers. Moreover, according
to the existing market conditions the sales of ASOS products is reached at international level.
This result 50% of the sales is increased by the utilisation of digital technology in their business.
Moreover, there are three different outsourcing strategy are monitored and controlled to
outsource ASOS products effectively. These are ethical trading, sustainable sourcing and animal
welfare. Further, in the year 2018 ASOS also designed and managed their programs with third
parties that are beneficial in transforming products as per current market needs. In the last, to
increases the business area. Organisation introduces and established digital business as a primary
source for business. In the present scenario, people or consumer prefer to buy their products from
online shopping. This result it is easy for management to earn high profits and acquire large
market area for business.
Market Segment
The aim of ASOS plc is to retain their business at top position in the fashion industry by
providing their products as a fashion specialist in the market (Schmidt and Cohen, 2013). They
provide and offer several products to customers by their website. Moreover, brand also
introduces and develops itself as a customer centric approach. Due to which it is easy for
management to target particular market segment. Further, the organisation is not only product
oriented but they also service oriented due to which the customer satisfaction level is high about
the brand.
Mission and Vision
Vision of the ASOS is to ‘create large demand about their fashionable and trendy clothes
design’ by utilising their unique digital business model. The main motive of vision is to gain
sustainable competitive edge or position about the brand through keeping demand of their
products at top position.
Mission statement of the ASOS is to become irreplaceable in the online fashion industry.
In order to lead at the top position management adopts regular changes in order to deal with
global environment (Remane and et. al, 2017). To accomplish the vision organisation delegates
its vision as per the needs of organisation. For achieving mission and vision management of

ASOS enhances keep their brand high by targeting the markets with an effective approach
through using various digital mediums.
Vision as well as mission statement of organisation leads management to work hard in order to
achieve long term goals by creating and inspiring design that use to deliver or offer to customers.
Key factors related with growth of business
Majority of the existing business are expanding and performing their operations at global
level. Due to which the pace of changing demands of customers is high in market. Therefore, it is
essential for ASOS to monitor these changes on regular basis as it works as a positive factor for
the success of an organisation. Some key factors related with growth of ASOS are as follow:
 Embracing the new- It is one of the major activity area that is related with ASOS Plc as
they are committed to provide latest products to its consumers. As per the last data
available ASOS is offering 2500 to 7000 fresh and new items on weekly basis. It results
they are known as one of the fast-fashion trend setter in market (Rayburn and Hoch,
2012).
 Priority to high price and quality- There are fast-fashion retailers, so as compare to other
rival organisation. ASOS Plc do not emphasis about the operational process but they also
prefer to provide high quality goods as per the price charged by them. So mostly the
prices which are charged by management are higher as compare to the rest assortment of
organisation.
 Discounts and offers- Discount related decisions of the organisation are developed with
an effective approach such as competitive strategy, formal meetings and many more. It
refers that all the decisions made by organisation are sectioned and represent a different
way which is known as ‘Outlet’. So with promotional techniques ASOS increases their
sales on constant basis.
 Core values- There are regular alternations monitored in the fashion industry due to
which business houses such as ASOS faces regular challenges to make their constant
sales. The wardrobe value for the clothes of industry is too high by owing their own-
black brand and blue denim by providing inferior quality in their products. Moreover,
ASOS new lines and curve offers provide wide range of products that make sales of
products on continue basis.

Impact of the external factors on the digital business operations
Formulation of strategies leads the management to gain competitive edge in market.
Therefore, it is crucial for the organisation to consider all aspects such as external factor by
which the performance of ASOS is impacted (Kohli and Melville, 2019). So by monitoring all
aspects it is easy for organisation to identify all those aspects that aid them to enhance the
chances of profitability and sustainability. Some factors that impact on digital business of ASOS
Plc is mention as follow:
 Political factor- There are various chances and possibilities related with firm and the
risk is change by little modifications due to which their business is impacted. On the
other side, it is mandatory for ASOS Plc to consider all political risk which probably
impacts on business size. Like the level of taxation is differ at all places that should
resist the organisation to earn high amount of profits. Trade barrier is the another
method which impact on the business size by resisting the organisation to export their
products. In simple words with the analysis of political factor it is easy for ASOS to
determine what to do in a country or not.
 Cultural factors- Each and every country follows a regular culture that works as a
combination of particular set of philosophies and values. In context of ASOS Plc it is
mandatory for management to aware about all of the aspects which are followed by
society. So the products and services which are provided by them cannot affect the
values of a person (El Sawy and Pereira, 2013). Along with this, it also helps ASOS to
determine the population of country according to their number, it governs that if the
persons and selected niche market belongs to a lower class society then it is not
possible for them to purchase premium product.
 Technological factor- From the past several years, technology is changing with a
rapid speed. This results ASOS has to make changes in their structure through which it
is easy for them to make changes in the existing operations. Moreover, in the existing
market, technology is one of the crucial part for organisation. Like if there is new
feature or technology changes are ahead as compare to them then it is essential for
organisation to respond quickly to constantly increasing the sale of their products. It
also leads the organisation to overcome from this challenges that are present in market.

 Environmental factor- In the present scenario, it is mandatory for the ASOS Plc to
contribute towards society by performing various CSR practices. It also helps the firm
to improve their image in the society. On the other side, ASOS Plc also contributes
towards animal welfare, because consumers already boycott services which are
delivered by them due to impacting the species (Darics, E. ed., 2015). So it is
important of organisation to analyse all the standards set by government and industry
in order to reduce the negative impact of society. So the firm undertakes various steps
that are useful to reduce the waste from organisation by removing the unnecessary
activities.
CONCLUSION
In the end by the above report, it is concluded that digital business is one of the major key
success factor for the organisation in present scenario. It helps the management to formulate new
business design that aids business operations to connect people as well as to improve their
revenue for longer period. Along with this it also helps the organisation to remove the barrier
that exists in the industry and aids to the management to formulate new business opportunities.
Further, it is also understand that ASOS Plc retains their customers by using digital modes of
communication. This governs that with the effective management of physical and digital sources
it is easy for management to push the boundaries of their business. Most of the present
organisation are offering their products on stores as well as digital platform. In both ways
management is targeting youth but in context to target youth they are focusing to use more
digital methods. Along with this, management is offering their products at a global level so price
aspect decided for their products is different at all levels. In the last, customer convenience is one
of the major advantage that is gained by organisation through digital business.

References
Books & Journals
Westerman, G., Bonnet, D. and McAfee, A., 2014. Leading digital: Turning technology into
business transformation. Harvard Business Press.
Sousa, M.J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research, 94, pp.257-263.
Schmidt, E. and Cohen, J., 2013. The new digital age: Reshaping the future of people, nations
and business. Hachette UK.
Remane, G. and et. al, 2017. Discovering digital business models in traditional
industries. Journal of Business Strategy, 38(2), pp.41-51.
Rayburn, D. and Hoch, M., 2012. The business of streaming and digital media. Routledge.
Kohli, R. and Melville, N.P., 2019. Digital innovation: A review and synthesis. Information
Systems Journal, 29(1), pp.200-223.
El Sawy, O.A. and Pereira, F., 2013. Digital business models: review and synthesis. In Business
modelling in the dynamic digital space (pp. 13-20). Springer, Berlin, Heidelberg.
Darics, E. ed., 2015. Digital business discourse. Springer.
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2015. Digital business and e-commerce
management. Pearson UK.
Online
The rise and fall of Philip Green’s Arcadia Group. 2019. [Online]. Available through:
<https://theconversation.com/the-rise-and-fall-of-philip-greens-arcadia-group-118627>.