Digital Transformation and Business Strategy Report: ASOS Analysis

This report examines the digital transformation of ASOS, a UK-based fashion retailer, outlining its strategic shift towards online operations. It analyzes the case for change, emphasizing the need for digital adaptation in a competitive market. The report delves into key aspects such as capturing insights through macro-environmental and competitor analyses using tools like PESTLE and Porter's Five Forces, and making informed decisions via conjoint and cost-benefit analyses. It also explores talent acquisition and engagement strategies, highlighting the use of digital platforms for recruitment and retention. Furthermore, the report discusses the creation of a digital culture, emphasizing the roles of both formal and informal leaders in driving change. The importance of collaboration and coordination among employees is also underscored. The report provides a comprehensive overview of ASOS's digital transformation journey, offering valuable insights into its strategies and challenges.

DIGITAL
TRANSFORMATION

Table of Contents
TASK-1............................................................................................................................................3
The case for change.....................................................................................................................3
TASK-2............................................................................................................................................3
Capture insights...........................................................................................................................3
TASK-3............................................................................................................................................4
Make fast decisions......................................................................................................................4
TASK-4............................................................................................................................................5
Acquiring and engagement of talent............................................................................................5
TASK-5............................................................................................................................................6
Creation of digital culture............................................................................................................6
TASK-6............................................................................................................................................7
Collaboration...............................................................................................................................7
TASK-7............................................................................................................................................8
Leader’s selection........................................................................................................................8
REFERENCES................................................................................................................................1

TASK-1
The case for change
ASOS is one of the famous cosmetic and fashion retailing store of UK. Its headquarter is in
London, UK. It was founded in 2000. Its main targeted customers are young people by enabling
them to move as per fashion and trends. It performs its business operation in terms of enabling
best beauty product and fashionable accessories. It belongs to retailing industry. It performs its
retailing and operating business not only in UK but across the world. The market that it operates
is mainly comprised of those fashion lovers who want to move along with changing fashion and
trends. Apart from its physical presence it operates its business activities through digital platform
over its website.
Along with digital transformation it also faces various issue and problems in terms of
selecting the best technology along with heavy investment and intense competition. Likewise, it
also faces the threat of having compliance with legal practices, data breaches and privacy along
with reputational threat was faced by ASOS when its shift its business operation to digital
transformation. Ethical and legal concern, raising complexity, public safety are also major threats
that the company can face while going digital transformation (Vial, 2019).
The digital transformation which is chosen by ASOS includes its online selling of products
and online customer dealing over its website and its mobile application named as ASOS APP by
which it would be remain in contact with its customers all the time. Also social media and digital
advertisement is used by company in order to raise awareness among the customer regarding its
products. The main objective of ASOS behind its digital transformation is to become number one
destination and company of fashion lovers. It also wants that with its digital transformation it
would enable its customers to create own fashion and move as per fashion.
TASK-2
Capture insights
In order to gain awareness regarding the business environment concerning the company,
ASOS need to analyse its macro environment, competitors and trends of market. this is because
these factors and aspect have major impact over the ASOS in terms of affecting its business
operations. Macro environment being an external and uncontrollable environment but its analysis
enables the company to have the knowledge about the factors that may impact its digital business

(Javeed and Mukhopadhyay, 2017). Likewise, an analysis of competitors will enable the
company to create idea regarding its competitor strategy. Similarly, the latest trends also help the
company to mould its business operations accordingly.
In order to have knowledge regarding these approaches ASOS may adopt various
techniques and models including PESTLE analysis, Porter’s five forces, Marketing analysis and
various other. By considering the political, economic, social, technological, legal and
environmental forces of external environment company can determine the exact analysis of the
macro environment and its changes along with its impact that may affect the operations (Perera,
2017). Likewise, an implementation of porter’s five forces will enable the ASOS to have
knowledge regarding the competitors and their impact over the company. it will enable the
ASOS to have knowledge to competitive market. in the same way marketing analysis including
marketing mix (Product, Price, Place, Promotion) and STP (Segmentation, Targeting,
Positioning) models can also allow ASOS to have to market knowledge and analysis. These
models enable the ASOS to determine the market as well as framing its policies as per marketing
aspects and situations.
In order to implement the above approaches, ASOS may use social media, websites,
eBooks, smartphones, Artificial intelligence and Augmented reality. These technologies enable
the ASOS to have knowledge and information regarding the macro environment along with
competitor analysis. These techniques and technologies also allow the ASOS to have adequate
implementation of the above approaches and models. Through these technologies say social
media ASOS can easily analyse the external environment changes along with market situation
and competitor’s strategies. Likewise, other technologies including AI, AR, websites also enable
the company to adequately implement the above models and approaches (Pagani. and Pardo,
2017). With the use of these digital technologies ASOS can not only implement the concerned
models but it will also formulate its policies and practices according to the need of market and
situation.
TASK-3
Make fast decisions
In order to make informed decision regarding the market changes and situations, ASOS
can adopt conjoint analysis in order to take decision regarding market research and analysis. As

per this technique a survey is conducted by which customer can share their views regarding the
company and its products in terms of value that the company’s product can offer (Shepherd and
Zacharakis, 2018). This will enable the ASOS to know its market position in terms of its
customer’s views. Likewise, paired comparison method can also be used by company in order to
make decision with regard to making comparison between two products and options. ASOS can
also adopt cost benefit analysis in order to take decision regarding financing of its business
operations. As per this technique company can compare cost and its derived value and benefits
towards the customers. Thus, the above technique enables the ASOS to implement the above
approaches and take the fast decision.
ASOS can guarantee that the decisions are inclusive and data driven because the above
technique involves the use of relevant data along with adequate models and technique that are
sufficient enough to raise adequate and appropriate decision for the company and its business.
Likewise, when data is compared as per benefits and other aspect then it will definitely enable
the company to have the best decision. In addition of this, when the information is gathered from
different approaches including PESTLE and various other and when the relevant techniques like
cost value analysis and other will be incorporate then it will lead to have an emergence of best
and relevant decision (Asche and et.al., 2018).
It is also to be considered that the digital technologies play an important role in terms of
taking informed decision. This can be understood as when information is collected from social
media then the knowledge regarding the marketing trends can be analysed which will support the
company to take adequate marketing decision. Likewise, data taken from authenticated website
also enable the company to have the knowledge generation regarding various aspect including
economic policies, legal regulations and various others also assist the company to take valid and
informed decision. In short it would be said that the digital technology enables the company to
have availability of appropriate information by which it can take most suitable decision.
TASK-4
Acquiring and engagement of talent
In order to implement the decisions hiring of required talent plays an important role. This
is because with the presence of adequate talent in the organization company can implement the
required decision. in order to attract and hire suitable talent ASOS use social media or other

digital platforms or applications by which it can publish its vacancy details. This will raise the
scope of bringing talent more widely because this technology inculcation will open up doors for
talented people (Koch, Gerber and De Klerk, 2018). Likewise, by taking appropriate test and
interview along with skill test ASOS hire most suitable candidate for the company. Arrangement
of digital online interview also enable the company to bring and attract right talent for the
company.
Only attraction and hiring of employees for the company is not enough until they will be
retain in the company. for this ASOS also adopt the practice of taring and development by which
it will retain most desirable talent in the company. Likewise, by enabling career advancement
opportunities companies usually retain talent in its organization (Singh, 2019). Raising
motivation by enabling financial and non-financial benefits, performance appraisal practice,
reorganization of good moves and praising are also some tactics used by ASOS in its
organization for retaining talent in its workplace. In addition of this ASOS also adopt the
technique of upgrading its equipment, maintaining positive work culture, flexibility in work
place and various other approaches are also adopted by company to retain its staff,
In order to attract and retain employees within ASOS, digital technologies also plays an
important role. This can be understood as with the use of social media and various online job
websites including Totaljobs.com, Otta, WorkInStartups and various other plays an important
role in order to search the best talent for the company. These websites enable the ASOS to have
an attraction of suitable and desirable talent for its business. In the same way with the use of
various application including zoom, Indeed and various other also enable the company to take
online interviews of the candidate. It is also to be noted that enabling digital recording of
attendance, employee’s performance measurement and recording, specialized training software
on digital platform enable the ASOS to have retention of its talent.
TASK-5
Creation of digital culture
In order to create a digitalized culture, leaders and their role plays an important part. With
respect to ASOS formal leader including Head of IT and Marketing managers plays an important
role in bringing and implementing digital culture in organization. IT managers enable the
company to be updated with the latest technology and enable it to get digitalized. Likewise,

marketing managers enable the employees to have appropriate implication of digital technology
in company’s operations. ASOS being a retailing company, role of IT and Marketing managers
are important because these are those personnel that will lead to have monitoring and controlling
of its majority of functions. Also their digital approach enables the company to have better
creation of digital environment. In addition of this, the behaviour of leaders in terms of directive,
supportive, participative and achievement will lead to have better implication and transformation
of digitalized company. Concerned marketing and IT leader with these behaviours guide the
company to be digitally advanced and adaptive. This is because these behaviours will enable the
ASOS and its employees to easily adopt digitalization along with digital transformation.
Apart from formal leader, informal leaders in the form of mentors, colleagues, team
leaders also plays an important role in term of creation of digitally evolved environment. As
these personnel are in close contact with employees so they have better understanding regarding
the pros and cons of the employees regarding changes and changing environment. With the use
of their supportive behaviour they enable support to employees and make ready to accept
changes. Likewise, with the use of their friendly and directive behaviour they guide the
employees to adopt changes and get ready for digital transformation (Hallinger, 2018. Being
employee’s best player and supporters, informal leader helps the employees to accept changes
and enable them to digitally transform their working operations. Being an employee’s supporter
they also plays an role of mediator by enabling the company to get the knowledge regarding the
employee’s needs and expectations along with problems with proposed solution. This will assist
the company to have better employees’ motivation and support and thereby enable them to grab
success with respect to digital transformation.
Thus, leaders including formal and informal will plays an important role in preparing the
employees of the ASOS with the acceptance of digital transformation and reduction of
resistance.
TASK-6
Collaboration
Collaboration and co-ordination of employees is the key of success with respect to
company and its goal. Through this concept better work performance can be executed along with
employees support. ASOS usually implement teamwork and effective communication as one of

the major tool and techniques with respect to establishment of collaboration among the
employees. These technique helps in integration of individual moves and efforts to a single line
and company’s directive direction towards the goal. With these aspects ASOS create team spirit
and collaboration so that it can pursue its direction towards its objectives. It will also lead to easy
implication of digitalization in company because through this aspect of teamwork and
communication, ASOS make clearance of employee’s doubts and problems and encourage them
to accept changes and digital transformation with respect to changing needs and trends. As these
techniques raise team spirit which make it more easy for company to have creation of digital
environment with the full support of its employees. Also, due to effective communication and
team work bonding and collaboration is created and this will ultimately result in acceptance of
changes (Bashan and Holsblat, 2017).
Asana and Slack are one of the major collaborative and digital tools that enable the ASOS
to have effective collaboration and implication of digital transformation. These tools would lead
to raise communication and collaboration which would be considered as a key with respect to
implication of digital transformation. As Asana is a digital mobile application which is designed
to track, organize, and manage teamwork (Guide, 2019). This application enables the company
to have better team performance and as a result better digital technological implication.
Likewise, Slack which is one of the major communication platform enable effective
communication also enable the ASOS to have better execution of digital initiative. Slack also
offer group chats, private group, direct messaging by which information is not just
communicated but it will be kept stored and recorded too. this will enable the company to have
better communication along with recording. Thus, collaboration and communication tools would
assist the ASOS to digitally deal its business along with accomplishment of its objectives.
TASK-7
Leader’s selection
As in order to implement digitalization, leader and its behaviour plays an important role.
Likewise, selection of appropriate leader on the basis of its attributes plays an important role
with respect to implementing digital transformation. Thus, presence of integrity, communication,
self-awareness, influence, learning agility, empathy and respect are the major attribute which
ASOS sees in its leader. These attributes enable the leader of the ASOS to have well

implemented digitalized work culture and business operation. This is because these attributes
enable the leader to have better synchronization with the employees and a result better outcome
would be produced. Likewise, these attributes enable the leader to have better dealing with the
employees, understanding their views and influencing them to accept the changes and act
accordingly. Leaders with these attributes may guide and assist the employees towards the
change. This can be understood as with the presence of these traits say communication, learning
agility, awareness a leader can motivate its followers in terms of sharing views, always ready to
learn new concepts and development of awareness. This will further lead the employees to have
creation of acceptance of changes and this will create positive direction for ASOS to implement
and transform digitally.
In order to become agile and innovative a leader should always ready to adopt the
behaviour of adaptability, confidence, achievement oriented and similar other. This means that
with the adoption of these behaviours a leader can become innovative with the thought and
processing of new idea generation and creation. Adaptability enable a leader to adopt the new
trends and accordingly frame its policies and strategies so that ASOS can also experience latest
trends and moves. Likewise, confidence of thought and related decisions enable the leader to
bring innovation in the organization (What Are the Characteristics of a Good Leader?, 2021).
Likewise, an analytical and critical approach with respect to leader also enable it to have a look
towards both the aspect of particular decision. as a result of that a leader can enable both pros
and cons of a specific decision and bring it in the form of new and innovative perspective for the
ASOS with greater possibility of success and growth.

REFERENCES
Books and journals
Asche, and et.al., 2018. Communicating value in simulation: cost–benefit analysis and return on
investment. Academic Emergency Medicine. 25(2). pp.230-237.
Bashan, B. and Holsblat, R., 2017. Reflective journals as a research tool: The case of student
teachers’ development of teamwork. Cogent Education. 4(1). p.1374234.
Guide, S., 2019. ASANA®.
Hallinger, P., 2018. Bringing context out of the shadows of leadership. Educational management
administration & leadership. 46(1). pp.5-24.
Javeed, N. and Mukhopadhyay, D., 2017. Exosomes and their role in the micro-/macro-
environment: a comprehensive review. Journal of biomedical research. 31(5). p.386.
Koch, T., Gerber, C. and De Klerk, J.J., 2018. The impact of social media on recruitment: Are
you LinkedIn?. SA Journal of Human Resource Management. 16(1). pp.1-14.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a business
network. Industrial Marketing Management. 67. pp.185-192.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shepherd, D.A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. In Reflections and extensions on key papers of the first
twenty-five years of advances. Emerald Publishing Limited.
Singh, D., 2019. A literature review on employee retention with focus on recent
trends. International Journal of Scientific Research in Science and Technology. 6(1).
pp.425-431.
Vial, G., 2019. Understanding digital transformation: A review and a research agenda. The
Journal of Strategic Information Systems. 28(2). pp.118-144.
Online references
What Are the Characteristics of a Good Leader?., 2021. [Online]. Available through <
https://www.ccl.org/articles/leading-effectively-articles/characteristics-good-leader/>
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