Strategic Innovation at ASOS: Enhancing Competitive Advantage

This report examines ASOS's innovation strategies, utilizing Doblin's 10 Types of Innovation framework to analyze how the company gains a competitive edge in the fashion industry. It discusses key innovations in areas such as technology, marketing, and customer engagement, highlighting the use of AI, augmented reality, and social media campaigns. The report also identifies a specific ASOS product or service, evaluates its level of innovation compared to competitors, and addresses intellectual property rights. Recommendations are provided for ASOS to further enhance its innovation efforts, particularly in supply chain channels and social media marketing, to sustain long-term growth and profitability. Desklib provides students access to a wide range of solved assignments and study resources.

Innovation

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Key types of innovation used by ASOS in the business........................................................1
Innovations used by ASOS to gain competitive edge in the market......................................4
Recommendations to ASOS to increase their use of innovation............................................4
TASK 2............................................................................................................................................4
Identification of a product or services of ASOS and the level of innovation used in it.........4
Comparison of the product with the competing brand...........................................................5
Demonstration of the intellectual property rights of the product or service getting infringed by
a competitor and methods used by ASOS protect the product...............................................7
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9

INTRODUCTION
Business Innovation refers to the process in the organization through which the new
ideas, methodologies, workforce, services and products are introduced in the business. This is
one of the most essential thing in the business as this helps the company in gaining competitive
advantage over other competitors in the business (Belyakova and et. al., 2019). The innovation
can be done on any product or services that the business is currently offering to the customers.
Innovation is moreover a concept in which the business undertakes to conceptualize new set of
ideas in the business. In this report ASOS is taken which is a fashion business based in UK, they
currently deal in more than 200 countries. This report revolves around the innovation in the
business by using the Doblin’s 10 types of innovation framework along with this the competitive
advantage gained by the company by using the innovation in the business are also discussed.
Further one product of the organisation is taken and the innovation level in that product is
discussed along with the comparison of the product is done with another product in the same
category.
MAIN BODY
TASK 1
Key types of innovation used by ASOS in the business
Doblin’s 10 Types of Innovation framework
Doblin divided the innovation into ten types where they covered all the aspects of innovation that
is there in the organization. The several types of innovation helps the business in particularly
thinking broadly and covering all the areas in which there is scope for innovation. Further the 10
types are divided and grouped into three categories, further the 10 types of innovation are
discussed below in context of ASOS: Profit model- This type of innovation is concerned with the ways in which the business
can continue increasing their revenue in the business. The business earns maximum of
their revenue from the core activities however it is essential for the organization to
critically evaluate the profit model of the company. Innovation in the profit model of the
business is the key of increasing revenue through activities (Breier and et. al., 2021). In
context of ASOS, they continuously work on their profit model as their core revenue is
generated from selling the fashion products but they still use the ways in which they can
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generate revenue even after selling the product. Like offering the matching clothing after
selling one series of clothing products in the market. Network innovation- This type of innovation is focused on collaborating with the other
market players and company so that the mutual interest of every firm in the environment
can be maintained (Nechaev and et. al., 2017). Building network is one of the major
components that enables innovation in the business and hence the company should be
open to build and network and collaborating with. In context of ASOS, they collaborated
with several fashion retail business over the time where they mutually advertised and
attracted the customers and this was beneficial for both the business. Structure- This refers to the process of organizing the assets and talent within the
company to ensure that the assets are well utilized in the business. The company is
required to critically evaluate the ways in which the structure of the assets can be of more
value so that the business can increase their profitability. In context of ASOS, they
constantly work on their assets such as the warehouses, computers, technology and the
employees. They always work on innovating these areas in the business as they will
directly help the business in increasing the profitability of the business. Innovation in the
assets of ASOS will also help in sustaining in the environment for a longer period of
time. Process- This refers to the technique and the process that is used by the business in
producing, managing, and marketing or in any other core activities of the business
(Broadstock and et. al., 2020). The innovation in these processes is essential as it helps
the business in competing with the market players and further adopting according to the
latest trends in the society. In context of ASOS, they constantly adapt to the innovations
in their production and marketing process so that they can adapt to the latest trend and
attract more customers. Product performance- The products and services offered by the company is the center on
which the organization develops brand image in the market. Therefore, these are the
major on which the organization should continuously work in terms of innovation. In
context of ASOS, they are into fashion industry and this industry is ever changing. They
continuously work on the products and they make innovation based on the current market
trend and styles. Fashion is one of those industry in which the clothing and other
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accessories get outdated very fast and hence innovation is the key in this industry (Sprong
and et. al., 2021). Product system- This system is focused on grouping and combing the products and the
offerings in one place so it can be well managed by the business. In context of ASOS, the
services provided by them online must be grouped with the products that they offer to the
customers so that they can ensure that both of these are well managed and the company
will be not required to handle those two areas separately. Service- Innovation in the quality and type of services provided by the business is key to
gain competitive edge in the market (Chandler and et. al., 2019). Every customer in the
environment is looking for the company who is able to offer the best quality of service in
the market. ASOS being an online fashion retailer innovates their services that they
provide online on the websites along with the service of delivering the products to the
customer on time with least cost possible. Channel- This refers to the channels in which the business connect with its customers,
the online and offline channels that the business uses in order to connect with customers
to further communicate the information must be innovated on a regular basis (Li, 2018).
In context of ASOS, they have created their several social media platforms that they use
in order communicate the new offerings of the business to the customers. Brand- This refers to the framework used by the organization in order to get recognized
in the market, the brand logo and name must be distinguishable enough so that the
organization can make its own presence in the market. In context of ASOS, they
continuously work on their logo and apply new ideas to innovate so that more and more
customers can get attracted. Customer engagement- This is one of the most essential area of the business as it is
prime responsibility of the business to engage with their customer base (Chen, 2018).
Therefore the organization must innovate the ways in which they can communicate with
the customers and learn the areas in which the organization is lacking. In context of
ASOS, they engage with the customers through several social media campaigns and polls
where they learn about the preferences of the customers.
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Innovations used by ASOS to gain competitive edge in the market
ASOS is currently trying to use every type of innovation in the business so that they can
acquire a good percentage of market share in the industry. Further the innovations used by ASOS
to gain a competitive edge in the market are discussed below: Innovation in the technology- The businesses are shifting online these days and hence it
has become necessary for every business to use the latest piece of technology of the
business in order to sustain in the environment. ASOS is an online fashion retailer, they
have used the best AI on their website which assists the customers in having a smooth
experience in their shopping (De Massis and et. al., 2018). This helps the business in
gaining competitive edge over the companies uses a slow AI and technology on their
websites and online business. Innovation in the marketing process- Innovation in the marketing process is essential as
the marketing techniques develop over the time and hence the business must adopt to the
latest trend. ASOS offers several discounts in their marketing campaigns that they
conduct on different social media platforms, this helps them in acquiring more and more
customers in the business (Tidd and Bessant, 2018).
Recommendations to ASOS to increase their use of innovation
ASOS is recommended to improve the innovation in their channels that they use in their
supply chain. If the organisation is able to deliver the products in a more fast and convenient way
then this will help the business in acquiring more and more customers. Enhanced customer
services always helps the business as they develop more client base which ultimately helps in
increasing the growth prospects and profitability of the business. ASOS is also recommended to
hire more employees that are trained in the field of social media marketing as in recent days the
whole industry is moving online and if the business is able to further enhance their brand
position in the market then this will help them in sustaining in the environment for a longer
period of time.
TASK 2
Identification of a product or services of ASOS and the level of innovation used in it
According to the Doblin techniques of innovation, ASOS company has innovated its
services where it implemented try before you buy. This service will allow them to test and
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experience products or services offered by the company before investing in it. During the year
2020 due to rules and regulations of lockdown the fashion industry was facing a tough time. In
order to promote and cell new products to their potential customers ASOS introduced augmented
reality (AR). As per the data collected by Office for National Statistics in the March 2020 the
sales were clothes word drop to 34% (Asos is using AR to promote and sell fresh products in
lockdown. 2020). Furthermore, due to rules and regulations of lockdown the respective company
has to furlong its employees. Even the most basic procedure required to keep stream of
innovative product rushing out to consumers have also been disrupted with models and
photographs are being housebound. In order to overcome all these problems our source has
founded a solution which is innovation in its digital technology. This digital fitting well allows
the company and its model to promote its new products among customers during the lockdown.
The brand ensures that this technology would be work by digitally mapping every product onto
model in a very realistic way through calculating account of size, fit and cut off every garment.
The company has also made sure that the product presentation must be as realistic and engaging
as possible so that its potential customers could get attracted towards it. It will be a great tool for
the company which will help it in promoting its product to customers while maintaining social
distance and following all the guidelines against COVID-19. The new shopping experience in the
fashion retail sector will provide the customers a new way of viewing products in real life. Under
this application all the customers are required to point their camera of devices at any suitable flat
surfaces and in the application of respective company has to click on AR button on the product
page. After this customer could see various models working in front of them which will provide
them a real-life experience (Hero and Lindfors, 2019). This tool will allow them to view
products on several models so that they could get their right fit according to their body size and
shape. Through this AR technology the respective company will digitally fit six diverse model
with approximately 500 products per week. This technology will provide the respective company
competitive advantage over others in the market.
Comparison of the product with the competing brand
Among the top competitors of ASOS, Burberry is one of them. Burberry is a British
fashion retailer company in United Kingdom which has its headquarter in London. The company
was founded in 1856 by Thomas Burberry which was originally designed to focus on
development of outdoor attire. The company is presently designing and distributing ready to
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wear clothes which includes trench coats, fragrances, eyewear, fashion accessories and
cosmetics. The comparison between ASOS and Burberry according to their products is explain
below:
Burberry ASOS
When a customer chooses to virtually Try on
Burberry products using in application virtual
activation technology, the application will
request the customer to access camera off there
device. When the customer permit the
following application to access their camera,
the virtual activation will access the image of
their face or body through their camera and
utilising 3rd party software, determining the
coordinates of their features and calculate these
by distance. Then these measurements will
developer formation of generic face model
within application in order to match the
dimension, current expression and shape of
their detected face (King and et. al., 2019).
Then the detected model is utilised as the basis
in order to overlying content that follows the
shape of their face such as an image of any
beauty products or cloth. The Burberry
company or the application would not be
specifically determining the customer based on
that data. The application, selected
organization and 3rd party service provider
will not capture or collect or record any
personal data information from this recognition
including any image of the customer. The data
Asos has been working towards introducing
virtual reality after the COVID-19. The
technology provides a digital platform to its
potential customer where they could view a
product on several models of different sizes or
body types. This innovative technology is
intended to ensure product presentation remain
as realistic and engaging. It provides engaging
experience to the customers where they could
try the chosen products on different models
along with watching them walking. This
technology will provide an opportunity to
customers of the respective company in
experiencing unique shopping (Li, Zhao and et.
al., 2018). While scrolling on the products the
customers of the selected company will see a
typical looking model shot along with a short
disclaimer which states as because of COVID-
19 and social distance sing the models of its
company are working from home so the
company thought to play around with some
unique technology and represent what they
could do. The customer could feel how the
chosen product will look on them with the help
of representation of that product on a model.
The result simulation hence company ensures
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developed by virtual activation would be
gathered locally on their device and once they
have finished with experience and logout from
the application the data would be deleted. The
company offers an option to access that data
through their email and it could be stored
temporarily along with deleting it after they
have sent this to the customers (Millar and et.
al., 2018). The company ensures that the users
of this technology is voluntarily customers
have the option to agree or deny on camera
service on their device while using this
technology. Unless the customer does not
choose to activate virtual activation and permit
it too access camera of their device the
application will not start or access their
camera.
that customer no that it wouldn’t be exact fit.
In order to use this application customers are
required to give access of their camera so that
it could detect their Shape and size.
Demonstration of the intellectual property rights of the product or service getting infringed by a
competitor and methods used by ASOS protect the product
Intellectual property is defined as the law such as copyright, patents and trademarks which
allows businesses to gain recognition or financial benefit from others they are innovating in
products or services. By noticing the correct balance between interest of innovators and broad
public interest, intellectual property purpose is to foster and environment under which innovation
and creativity could be flourished (Manso, 2017). The respective company that is ASOS it has
predicted its rights through copyright and trademarks. The marketplace of the company operates
a zero-tolerance policy against any business found it to be selling counterfeit products. While on
the other hand Burberry implements trademark and registered designs as an intellectual property
in order to protect their rights. The copyright notice on the website of ASOS company indicates
that all the products within the site are intellectual property of the company. All the content,
material and forms that has been contained on its website are also the intellectual property of our
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source and the company ensure that it might not be copied distributed, displayed or reproduced
without the permission of the firm which should be in return (Yunus, 2018). However, others
could print complete pages of the website for their own personal usage. On the other hand,
Burberry is committed to provide privacy with applicable laws in regulation in order to make
sure that personal data of the customers would be kept in appropriate, secure and lawful manner.
CONCLUSION
From the above discussion it has been concluded that innovation please and very important
role in gaining competitive advantage for companies. It has been analysed that companies could
innovate product or services that could bring them growth and productivity. From Dublin
innovation of framework, it has been evaluated that companies could innovate their business on
the basis of 10 characteristics. It has been examined from the above report that in today’s world
of digitalization many businesses have innovate their services in technology. It could also be
concluded that companies protect their right of product through intellectual properties which
helps them in protecting their rights. In the end it could be said that for business to grow in the
market and gain competitive advantage over others it is very important for them to innovate
continuously in their certain products or services.
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[Online]
Asos is using AR to promote and sell fresh products in lockdown. 2020. Online Available
Through: <Asos is using AR to promote and sell fresh products in lockdown | The
Drum>.
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