Evaluating ASOS: Digital Technologies, Innovation, and Growth (2021)

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Case Study
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This case study examines ASOS, a UK-based online fashion retailer targeting young adults, and its utilization of digital technologies. It evaluates ASOS's current service provisions, including free delivery and return/refund policies, weighing their pros and cons. The analysis incorporates qualitative and quantitative data gathered from social media, media reports, and statistics. Recommendations are provided to enhance ASOS's innovation and growth, emphasizing the need for continuous technological updates and market analysis to meet customer needs and achieve organizational goals. The study concludes that digital technologies are crucial for ASOS's success, highlighting the importance of augmented reality, social media marketing, and other digital tools in driving innovation and achieving desired outcomes. Desklib offers a platform to explore more solved assignments.
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Digital Technologies
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Overview of the company......................................................................................................3
Evaluation of the current service provisions of ASOS...........................................................4
Recommendations..................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERNCES:..................................................................................................................................7
Books and Journals:................................................................................................................7
Online.....................................................................................................................................7
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INTRODUCTION
In today's business environment, it is identified that day by day the use of digital
technologies are increasing. The reason of this change is the advantages of digital technologies.
This becomes necessary for an organisation to use digital technologies in their business practices
(Balashova and et. al., 2019). Digital technologies include many tools and techniques such as
artificial intelligence, block chain, internet of things, etc. It is really helpful in innovation in
organisation which results in taking competitive advantage. In this context, ASOS is undertaking
which is the online retailer of clothes. They are aiming at young adults as they are their target
market. This report will be use the qualitative and quantitative information which is used for
understanding the organisation's improvement and opportunities for their success.
MAIN BODY
TASK
Overview of the company
ASOS is the UK based organisation that run their online fashion retailer business very
well in the market. It was founded in 2000 which has a main focus on young adults. They are
running their business with the use of digital technologies due to their online business. ASOS is
the acronym of As Seen On Screen with a tag line of Buy what you see on film and TV. This
statement means that organisation provides images to the consumers and try to convince them
that they should purchase products (Arkhipova and Sirotin, 2019). This company is using all
types of digital marketing tools and techniques. As per their online website, it is found that they
are using social media tools and techniques such as Twitter, Snapchat, Facebook, etc. It is
identified in the report of 2009 that approximate 10% sales are come from email marketing. This
shows them that they have to focus on online business and that's why they are now more focused
on social media marketing. In 2017, ASOS launched their campaign in order to take advantage
of Instagram Stories. Their campaign is focusing on encouraging users so that they can upload
their videos in ASOS clothes. It is found that approximate 3 million people are interacted
through video. They also used YouTube videos in which they shows that how they dress up in
ASOS clothes.
From the above graph, it is found that ASOS is using Facebook more because UK people
are generally use this digital method in order to grow their business. With their innovative
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content on social media marketing, they are growing their business very well (Taipale, Wilska
and Gilleard, 2017). They are not just focusing on one social media app but also focusing on
other types of social media marketing.
Evaluation of the current service provisions of ASOS
After pandemic situation, it becomes necessary for ASOS that they need to update and
improve their technologies so that they can run their business. In current scenario, ASOS is
focusing on using augmented reality which is the enhanced version of real physical world (
Asos
is using AR to promote and sell fresh products in lockdown, 2020). When people were not going
for shopping on offline stores, then ASOS find out the solution that gives a experience of offline
shopping with online shopping. They dis this by using augmented reality which is very effective
as it shows digital visual elements. Along with this, ASOS has some more provision of services
that are mentioned below:
Free Delivery: They has a provision of free delivery which generally other organisations
are not provide (Asfondiarova and et. al., 2019). They provide this provision to the consumers
after purchasing goods at certain price. For example, it is found in Australia that ASOS provide
free delivery option to consumers after purchasing of goods which worth should be minimum
$40 or above.
Pros
It becomes an attraction point for customers as they get influenced due to free delivery of
products.
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This will increase the number of customers which generate higher profits.
Cons
People are not accepting this policy as they need to purchase materials for attaining the
standard prices unnecessarily which becomes the negative aspect of this services.
Returns and refunds: This becomes very common in now these days where an
organisation provides both return and refund options. But ASOS takes a competitive advantage
with this policy as they provide relaxation in this service (Fossen and Sorgner, 2019). Their
customers does not need to give any proofs for their return and refunds. Due to this, it is found
that they get attracted towards organisation.
Pros
The customers purchase more goods due to this facility.
It increases their sales and incomes in an effective way.
Cons
It is found that due to technical errors some times refund is not possible which break the
customer loyalty as customers thought this is the mistake of organisation.
Sometimes due to this service, customers take unnecessary advantage as they return
products in many times which increases the cost of organisation.
Recommendations
After discussing pros and cons of current provision of services, it is recommended to the
organisation that they need to analyse the current market situations. This helps in understanding
of customers' needs and wants which assist their company to make policies accordingly. In
addition to this, it also recommended that company needs to looking for updates in their
technologies as the use is increasing day by day and it also becomes the key element of
innovation and growth. Customers get more attracted with the help of new updated technologies
which results in achievement of desired results. It also helps in achievement of goals and
objectives of organisation.
CONCLUSION
It can be concluded from the above discussion that digital technologies plays an
important role in the success and growth of organisation. ASOS is the online retailer which run
their business on the basis of digital technologies. They use many technologies in their business
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practices such as augmented technology, artificial intelligence, etc. It is analysed from the
discussion of digital technologies that it becomes the key element of innovation organisation.
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REFERNCES:
Books and Journals:
Arkhipova, M.Y. and Sirotin, V.P., 2019. Development of digital technologies in Russia:
regional aspects.
Ekonomika Regiona, (3), p.670.
Asfondiarova, I., and et. al., 2019, March. Digital technologies for providing the quality of food
products. In
IOP Conference Series: Materials Science and Engineering (Vol. 497, No.
1, p. 012106). IOP Publishing.\
Balashova, E., and et. al., 2019, March. Calculation and analytical instrumentarium for
estimating the economic efficiency of the digital technologies development process.
In
IOP conference series: materials science and engineering (Vol. 497, No. 1, p.
012107). IOP Publishing.
Fossen, F.M. and Sorgner, A., 2019. New digital technologies and heterogeneous employment
and wage dynamics in the United States: Evidence from individual-level data.
Taipale, S., Wilska, T.A. and Gilleard, C. eds., 2017.
Digital technologies and generational
identity: ICT usage across the life course. Routledge.
OnlineAsos is using AR to promote and sell fresh products in lockdown, 2020. [Online] Available
through : <https://www.thedrum.com/news/2020/05/18/asos-using-ar-promote-and-sell-
fresh-products-lockdown>
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