ASOS: Globalisation Strategies to Enter Emerging Markets Analysis

This report analyzes the effectiveness of globalisation and the various strategies employed by businesses, specifically ASOS, to enter emerging markets. The report begins with an overview of globalisation and its impact on businesses, followed by a background on ASOS as a global online fashion retailer. The rationale for the research highlights the importance of understanding globalisation and its influence on business operations. The research aims to analyze the effectiveness of globalisation and the strategies used by businesses to enter emerging markets, focusing on ASOS as a case study. The objectives include understanding the concept of globalisation, identifying its significance to ASOS, examining the benefits of entering emerging markets, and determining the strategies employed. The literature review covers the concept of globalisation, its significance to ASOS, the benefits the company can gain from entering emerging markets, and various entry strategies such as direct exporting, licensing, partnerships, and joint ventures. The methodology section details the qualitative research approach used and the interpretivism research philosophy. The report concludes with a discussion of the research findings and their implications for businesses seeking to expand into emerging markets, with a specific focus on ASOS.

Research Project

Topic: Different strategies employed by businesses to enter emerging markets
INTRODUCTION
Overview of Research
Globalisation is considered as historical process that aids in human innovation as well as
technological progress or advancement. It is mainly refers to developing the consolidation of
effectiveness in all around world generally funds, movement of goods and facilities in around the
borderline of particular country. In 20th century, several countries agreed to the lower tax on
products, tariffs which are imported from the other countries. In 21 century, globalisation has
changed system, political view point, social group etc. in a detailed manner (Alejandra Gonzalez-
Perez, 2013). The globalisation can be seen as scheme to open global economy and associated
development in trade. It is an integration to economy of country with economy of world where
services and products, capital move across border and where the financial markets of country are
impacted through fluctuation in global market.
Background of Research
Globalisation is explained as procedure of interaction as well as integration among
people, organisations and government of different nations. It is compulsive through international
trade and also investment made through using the information technology. Globalisation is vast
concept and plays a necessary role in development as well success of the international business.
It is regarded as vast term that is mainly applied to depict all the commercial transactions for an
instance investment, transport, sales, logistics and many others which occurs among two or more
than the two regions countries and nations beyond political boundaries. ASOS is British online
fashion and the cosmetic retailer. This firm was situated in year 2000 in London and its main aim
at the young adults. It sells more than 850 brands and as its own accessories and clothings. This
company has become global business with almost 60% of its business coming from foreign
countries. Providing fully localized experience of buying to key international markets was
cornerstone to success of ASOS e-commerce (Alexander, 2013). This form make innovation as
well as fashion sense in its business in order to attract large number of the consumers effectively.
In this present era, organisations use the various strategies to enter in to the emerging markets
such as franchising, joint venture, mergers & acquisitions and many others.
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Rationale of Research
This research is based on analyse effectiveness of globalisation and various strategies
employed through the businesses to enter into emerging markets. Globalisation is a wider
concept that helps in plays a necessary role in functioning as well as operations of business.
Under this, company use different strategy to enter in to the emerging markets in an effective
manner. Research aids in provide knowledge about concept of globalisation. Investigator
conduct study for the purpose of developing capabilities as well as knowledge base of an
investigator (Apăvăloaie, 2014). The personal reason behind conducting this study is self interest
of learner.
Research Aim
Aim of this research is “To analyse effectiveness of globalisation and various strategies
employed by businesses to enter into emerging markets”
. A study on ASOS.
Research Objectives
 To understand concept of globalisation.
 To identify importance of globalisation to ASOS business.
 To examine benefits of globalisation which ASOS can get from entering into emerging
markets.
 To determine different strategies through which ASOS can enter in to emerging markets.
Research Questions
 What is globalisation?
 What is significance of globalisation to ASOS business?
 What are benefits of globalisation which ASOS can get from entering into emerging
markets?
 What are various different strategies through which ASOS can enter in to emerging
markets?
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LITERATURE REVIEW
It is explained as comprehensive summary of previous investigation on specific area. It
surveys books, sources, scholarly articles which are concerned with the specific area. It should
describe, enumerate, evaluate and also clarify the past research topic. This area of research is
based on the secondary method of data collection. For conducting research, researcher use the
various sources like books, articles, journals, internet sources etc.
Concept of Globalisation
According to John Williamson, (2018) Globalisation is regarded as procedure on
international integration that develops from an interchange of the ideas, products, services and
some other culture components. In this, globalisation is identified as process that enhance
exchange of the cultural and national resources in all over the world. The globalisation helps in
give opportunities to organisation for enhance their growth and profitability in global market.
Globalisation is regarded as possession through which the local markets can each at international
level and give contribution towards improving an economy of country. In addition to this,
globalisation aids in develop the better or positive communication among the two different
countries. Feature of economic procedure is mainly used through organisations to adverse
implicitly towards economic process. On the other hand, it is a group of action of national
economies with global economy with the help of using trade, superior flow of funds, foreign
direct investment and make innovation in technologies.
The globalisation implies opening of the nationalistic and local perspectives to wider
outlook of interconnected world with free transfer of services, products and capital across
national frontiers. It is a procedure of globalisation that has significant business, economic and
also social implications.
Significance of globalisation to ASOS business
As per viewpoint of Jan-Emile van Rossum (2017) Globalisation is defined as procedure
that spread products, services in world. As ASOS deals in fashion industry and it provide its
clothes in all over the world by its stores and e- commerce. It conduct its business operations by
using the phone app, social media, website and other ways. With the help of using globalisation,
company can target the Large number of consumers and offer them its designer clothes
according to needs and demands of customers. It will aids in enhance profit level and market
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share in international market. Other than this, some of the other advantages related to
globalisation to ASOS business given below:
Competitive advantage: Large and small size business firms take global enlargement to
achieve the benefits in a better manner. For an instance, main focus of ASOS is on expanding its
business operations as well as activities within emerging markets under which its competitors do
not direct have very first-mover advantages and permit them to develop the high brand
recognition customers before their competitors. In modern era, main consideration of every firm
is to give higher competition to its competitors in context to gain the competitive benefits at
marketplace.
Diversification: Many of the businesses firms expand its business at internation level in
context to diversify their activities, assets and action which can be protect bottom line of
company against any kind of unforeseen events. In context to this, ASOS business firm can
conduct its operations in emerging markets for purpose of develop unique services as well as
products which can help in generate the higher revenue.
Benefits of globalisation which ASOS can get from entering into emerging markets
According to Tejvan Pettinger (2017) Globalization is consider as an necessary role in
entering into emerging market as it provide support to organization in order to operate business
activities at across the world. Mainly, it support in economical development of different nation in
the globe. Through this, company can established their positive brand image in easy manner. In
addition of this, globalisation also provide path and new market in which company can easily
make their performance more productive. In this context there are some benefits of globalisation
for organization during entering into emerging market:
Identify new market: One of main benefit of globalisation is that it introduce new market
wherein company operate their business activities with the aim of enhancing profitability level.
With the help of new market, firm can improve their customers base and established competitive
advantage from its rivals.
Opportunities to expand business: Globalisation is an activity through which business
organisation operate their business globally with aim of capturing larger market share. As it
increase the competition
level at market place that promote innovation within the organization.
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Various strategies through which ASOS can enter in to emerging markets
As per viewpoint of David Wijeratne, Gagan Oberoi, and Shashank Tripathi (2019),
Emerging economies is defined as nations which investing in the productive capacity. There are
different ways under which firm can enter in to emerging markets. ASOS is a large size company
and it use the effective entry strategies to enter in to emerging markets. There are different
strategies given below by which ASOS can enter in to emerging markets:
Direct exporting- It refers to selling directly into market either through intermediaries
and directly selling product to end user. In this, firm can sell its services and products directly to
consumer in other country without using any distributor or importer.
Licensing- It is sophisticated arrangement where company transfer rights to use service
or product to other company. It is one of the useful strategy if purchase of license has large
market share in market in which firm decide to enter. In addition to this, it is profitable when
license hold good position in local market.
Partnership- It is one of the better strategy because in this two organisations are working
together for achieve the specific aims as well as objectives within specific time period. Under
this, both firms divide the profit equally among them and responsible for loss.
Joint venture- It is specific form of the partnership that consists creation of the third
interdependent managed firm. Under this two organisations are agree to work together in specific
market either product or geographic and develop third firm that undertake this. It is useful
strategy when entering in to new emerging market since fir can be benefits from infrastructure of
local partner along with experience in market.
Among all the entry strategies, ASOS company can use direct exporting strategy because
through this firm can direct offer and sell its products in to emerging countries. On the other
hand, in this strategy there is a less cost involved.
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RESERACH METHODOLOGY
Methodology is explained as systematic analysis of those methods which applied to study
area. It is comprise the theoretical analysis of body of methods which are concerned with
knowledge branch (Appel, Franz and Hassler, 2014). It is system of methods which are mainly
used in specific study area. Different areas related to research methodology mention below:
Type of Investigation
Research methodology is explained as procedure that mainly used to collect information
for aims of making effective decisions of business. Different types of the research methods such
as qualitative and quantitative. The quantitative research method, data is measured in context of
mathematical basis. On the other hand, in qualitative method, information is measured in terms
of quality (Axelrod and VanDeveer, 2014).
For conducting this investigation, researcher use the qualitative method because it is a
better sources for developing the positive outcomes by conducting an in- depth analysis of arisen
research issues.
The strengths and weaknesses of qualitative research method:
Strengths Weaknesses
 It helps in provide the in- depth
information regarding specific subject.
 Its main focus on the small groups that
do not need many expenses.
 It is complex to maintain and also asses
rigidity of data.
 In this, gathering the statistical data is
not easier.
Research Philosophy
It is considered as most necessary aspect of research that helps in implement the work in
a right direction. It is a set of belief that researcher consist at the time of executing research
related activities. Positivism and interpretivism are two various types research philosophies.
In conducting this present work, investigator uses interpretivism research approach as it
is helpful in giving the qualitative report by which resercaher is able to analyse data at various
horizons.
Strengths and weaknesses of Interpretivism research philosophy:
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Strengths Weaknesses
 This research philosophy provides the
in depth discussion.
 The data is honest and trustworthy.
 The main weakness of this philosophy
is that it has low reliability.
 In this, primary data can not be
generalized and it impact through
personal values and view point.
Research Approaches
It is an essential component of research methodology. It refers to plan as well as
procedure which includes steps of wider assumptions to the detailed data collection methods,
analysis and interpretation (Bailey and et al., 2018). Inductive and deductive are two different
kinds of research approaches. Under this, deductive research approach is based in developing
new theories that supports hypothesis. Inductive research approach has been accumulated
implementation of analysing available data and information which facts and figures.
Inductive research approach has been used because this investigation is based on
qualitative measures and helpful in developing the accurate and reliable information for carrying
put research operations effectively (Baud and Durand, 2012).
Strengths and weaknesses of Inductive research approach:
Strengths Weaknesses
 It is flexible approach.
 It takes the particular observations and
make the conclusion out of them.
 In this, observations are incorrect and
investigator would end incorrect
conclusion.
 It is more time taking.
Research Design
It is defined as framework of techniques and methods which are chosen by researcher to
combine various components of research in a logical manner so that the issues related to research
can be handled in a proper manner. Exploratory, experimental and descriptive and different types
of research designs (Belás and et. al., 2014).
This present report is based on the descriptive research design because it gives in depth
information related with specific subject field.
Strengths and weaknesses of Descriptive research design:
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Strengths Weaknesses
 It provides the detailed information
about particular area.
 It helps in collection of data from case
studies.
 Confidentially of data can be problem.
 Error and subjectivity are the main
disadvantages in descriptive research
design.
Data collection
It is defined as to technique of collection of data from different sources. It is a procedure
of analysing information on the variables of interest in systematic manner. It aids in provide the
relevant answers to issues related to specific topic. Primary and secondary are various methods
of data collection (Beynon-Davies, 2013).
In primary method, data is collected for first time. In order to collecting data from
secondary method, questionnaire has been conducted though investigation by taking opinions of
different respondents.
Strengths and weaknesses of Primary data collection method:
Strengths Weaknesses
 In this, the collected data is relevant
and original to topic of research study.
 It can provide the better realistic view
to investigator regarding specific topic.
 It is time taken and more efforts are
needed for collection of data.
 It is expensive.
Secondary method of data collection has been used in conducting literature review part. The
different sources of collecting secondary information are books, articles, journals, internet
sources and many others.
Strengths and weaknesses of Secondary data collection method:
Strengths Weaknesses
 It is faster to access and cheaper.
 It saves efforts and time.
 With passage of time, data becomes old
and obsolete.
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 It can raise the issues of copyright and
authenticity.
Sampling
It is emphasis on choosing the sample size from whole population. It is generally used in
the statistical analysis in which the predetermined number of the observations are taken from the
large number of population (Carneiro and Brenes, 2014). Probability and non- probability are
two different types of sampling methods. In probability sampling method, researcher use random
data sampling method and select 30 respondents. These respondents are customers of an
organisation.
Ethical considerations
Ethics refers to the norms, values, principles which researcher should be followed at the
time of conducting an investigation. In any kind of situation, conflict can be arise and it is
necessary for a researcher to develop some plans to overcome from the arisen situations. It is
important for an investigator to keep information of respondents confidential and do not leak
information of respondents in front of everyone (Cavusgil and Knight, 2015). At the time of
conducting survey, researcher should not asks any personal question from respondents which can
hurt their sentiments. It is necessary for an investigator to include cost and time as per their key
aspects because these all are necessary in completion of research within given period of time.
Cost
It is one of the most necessary aspect that helps in conduct an investigation in a
systematic manner. Without funds, researcher can not able to perform any activity of an
investigator. The cost involved in project is £10000.
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Timescale
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