TARIFF BARRIERS FOR ASOS.COM IN THE INTERNATIONAL EXPANSION OF BUSINESS

Running Head: TARIFF BARRIERS FOR ASOS.com (A UK COMPANY) IN
INTERNATIONAL EXPANSION OF BUSINESS
Tariff barriers for ASOS.com (A UK Company) in the international expansion of business
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TARIFF BARRIERS FOR ASOS.COM 1
Table of Contents
Executive Summary...........................................................................................2
Introduction.....................................................................................................3
Outline of Issues...............................................................................................4
Response........................................................................................................6
Impact...........................................................................................................9
Conclusion and Recommendations......................................................................11
References....................................................................................................14

TARIFF BARRIERS FOR ASOS.COM 2
Executive Summary
The change in the economic conditions across the world have increased the range of trade
tariff towards its products, the considered case of ASOS.com determines that the firm
following an e-commerce model to increase its sales and profits in the markets they are
working towards balancing their business. The company is working in the USA, UK, and
Europe, however, after the implementation of trade tariff by USA’s Trump Administration,
the global economy is on the verge of global war, thus it requires the firm to plan its
strategies following the trade tariffs in the international market as it will help the
organization to expand its business successfully and accomplish its targets successfully.

TARIFF BARRIERS FOR ASOS.COM 3
Introduction
International trade is carried out in collaboration with businesses and government by
putting aside the trade barriers because these barriers create obstacles to sell their products
and services in a foreign market. The key challenges for companies include natural barriers,
tariff barriers, and non-tariff barriers. Natural barriers are physical or cultural for the firm, for
example, marketing lingerie brand in public advertisement medium in UAE or Saudi Arabia
(Ding, Huo, & Campos, 2017). This might create issues for the company on a national level.
It is important for organisations to work to develop an understanding of the market approach
in forming perspective. Language is considered another barrier which is required to be taken
into consideration while planning strategic management (Keck, Hancock, & Nee, 2018).
Tariff Barrier is another element which is imposed by the government of nation on imported
goods; they are charged per unit, which makes the goods more costly for a firm. For many
companies, tariff barriers is a key reason that refrains their management from international
business expansion (Xue, Li, & Pei, 2016).
Non-Tariff barriers include government using other tactics to restrict trade between
the two countries. For example, the government is keen to set quotas for import in a specific
amount of any product. Other barriers include embargoes, buy-national regulations, and
exchange control. However, it is important to discuss different types of tariffs in relation to
the business expansion of ASOS.com in the international market (Zhang, Xia, & Shu, 2016).
ASOS.com is a UK based online fashion and cosmetic retailer founded in 2000 in London,
targeting young adults (ASOS, n.d.). The company is associated with more than 850 brands;
it also has a range of clothing and accessories which is offered to customers across 200
countries using its e-commerce business model from its fulfilment centres in the UK, USA,
and Europe (Ogbor & Eromafuru, 2018). It has been working in the industry since the last
two decades, and it has managed to build a strong brand position among its rivals. The key
operations of the firm are managed by Brain McBride, Nick Beighton, and Anders Holch
Povlsen (which hold 27% stakes of the firm) (Ruiz, 2018).
Currently, the revenue of ASOS.com is £2.4 billion as calculated in 2018, 4386
employees are working with the company to manage its operations. The work domain of the
company is www.asos.com and www.asosplc.com. Since 2013, the company is working
towards expanding its business in Russia and China. In 2014, ASOS.com sponsored McLaren
Formula One team as a marketing tactic. In 2015, the company was declared as the largest