Report: Emerging Themes, Business Strategies, and Asos Impact Analysis

This report provides a comprehensive analysis of the impact of emerging themes on Asos, a prominent online fashion retailer. The introduction sets the stage by highlighting the rapid growth of businesses and the influence of political, social, and demographic trends on the fashion industry, particularly emphasizing the role of internet-based shopping and marketing. The findings and analysis section delves into the impact of emerging themes on Asos's current business strategies, examining the effects of political, technological, demographic, social, and global trends, along with legal and economic transformations. The report further explores how these themes have influenced Asos's operational and strategic decision-making, including the effects of technological advancements, Brexit, and evolving consumer preferences. The report concludes with recommendations for managing the impact of these emerging themes to achieve competitive advantage. Throughout, the analysis underscores the importance of adapting to market changes and incorporating new technologies to maintain a strong position in the fashion retail industry. The report emphasizes the role of globalization and the need for Asos to evolve to meet changing societal values and norms. The analysis showcases the impact of the digital landscape, including social media and online platforms, on Asos's business strategies.

EMERGING THEMES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
FINDINGS AND ANALYSIS........................................................................................................1
1. Impact of emerging themes on current business strategies................................................1
2. Impact of emerging themes on the operational and strategic decision-making of Asos....5
3. Recommendations to manage the impact of emerging themes..........................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business today is growing at a fast pace incorporating various strategies, recent trends
and developments in the environment. The emerging trends have helped business organizations
to expand and increase their scale of operations. The impact of political, social and demographic
trends have the impacted fashion industry and its overall growth. The internet based shopping
and marketing has provided organizations with competitive advantage.
Asos is a leading online fashion organisation of UK, selling clothing for men and women
since 2000. Company has also expanded into accessories, jewellery and beauty products over the
years grabbing online customers and marketing more than 9000 products. Company has listed
shares for public on AIM, a part of London stock Exchange. The report incorporates emerging
themes and its impact on the organization which is a leading fashion retailer. Afterwards it
includes various recommendations which needs to be undertaken by the organization in order to
achieve competitive advantage.
FINDINGS AND ANALYSIS
1. Impact of emerging themes on current business strategies
The new trends and emerging developments has impacted Asos marketing and selling
strategies. An online store needs a huge scale of operations in order to expand its services and
increase its production units. With the growing in demand and changes in fashion, Asos has
expanded its warehouse area from 550 square meters to 32,500 square meters in a span of five
years (Banich, 2018). Not only this, the company has also enhanced its workforce from merely
47 employees to 250 working employees in the year 2008 with the increase in demand for its
products.
Asos being the leading online fashion company has seen a major change in last five years
from 2005-2008 which is mainly due to both macro and micro environmental changes (Council,
2010). The impact of these changes has evolved Asos as one of the successful organization in
fashion market. In order to sustain in the competitive environment, UK Fashion industries have
to deal with many political issues, economic uprising and changes in social trends, technological
advancements as well as transformations in laws and policies for environmental protections
(Banich, 2018). Evaluating various changes and its impact:
Political environment
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Asos being a public limited company is impacted by the various changes and shifts in the
political environment which affects shareholders earnings as they are the owner of the fashion
concern. The shares of the company are listed on AIM and could be bought and sold by the
public in general (Bogers and et.al., 2017). The changes in political environment will impact
overall working of Asos as it is a legal entity. Moreover, the impact of market demand and
supply will decide its share prices rates and hikes.
Since Asos operates globally it is impacted by the political environment and political
instability of various countries significantly (Bogers and et.al., 2017). The trade barriers and
tariff policy of every country will have an impact on the fashion industry weakening its position.
The intellectual property rights and protection costs a lot to companies serving online as
warehouses needs to be purchased.
Technological advancements
The emerging use of mobile technology, online platform and web based and digital
platforms have provided companies new edge. The use of internet has simplified the processes of
the company by providing growth tremendously (McRobbie, 2008). The company has spend a
total of £30.2 billion in 2006 on online as the growth of online customers increased by 56%. The
technical advancement in form of social media platforms and sites such as Facebook, twitter and
others has simplified customers reach to organization.
The company has evolved drastically over the last five years transforming its structure,
processes and systems (Kadam, 2018). Asos continuously checks on new developments and
trends incorporated by its competitors and then plan strategies to develop better design and units
for marketing of products. The company being a retail industry needs to expand its advancement
of technology in each and every aspect.
Demographic changes
The customers and their demands are changing continuously. Fashion retail industry like
Asos needs to be evolve continuously with market trends in order to survive (Gao and Reitz,
2017). The company needs to assure its customers visiting sites that new trends and fashion
products are available by creating value and encouraging them to purchase. The company needs
top create such a remarkable impact by offering quality products at reasonable price which
stimulates customers to buy online.
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Another impact Asos needs to focus is to position its product demographically as children
and adult in particular size range. Targeting consumers with similar demographic characteristics
helps maximize a company's sales and profits which Asos should take in consideration. It is
mainly seen the age group ranging from 20-25 usually buys more clothing and have up to date
information on fashionable products (Council, 2010).
Social trends and shifts
The trends in social environment and society has an equivalent impact on industry
especially fashion retail stores. The society and community in which an organization works
impacts its way of creating products and rendering services (Wu and Chiu, 2018). The changes
in style and trends has a major impact on the fashion industry as any product could become
obsolete in a small time span as the current trends are changing. This costs a lot to organizations
engaged in fashion products. Thus, Asos invests a lot in emerging trends and its development
and provides huge discounts on out of fashion stock. The changes in social trends changes the
entire mindset of people which Asos needs to consider before going into production process.
The impact of society plays a vital role in shaping the overall image of the organization
engaged in fashion industry. Asos needs to undertake various measures related to culture, values
and ethics as well as standards of people of society. The structural base and attitude of people
impact growth of Asos drastically (British Fashion Council, 2017). The company to succeed
needs to evolve itself thereby encompassing social values and norms into its production units.
Industry globalisation
Globalisation has played an important role in developing business all around the world.
It has impact on society and people in both positive and negative ways by providing easy access
to every product and services either online or at their door step. This has made life easy though
has increased competition amongst small and medium fashion enterprises such as Asos.
Globalisation is opening doors for various small and medium enterprises to export their finished
products and import any sort of raw materials (Strategic growth in the fashion retail industry,
2018). It is providing individuals a large market by making market efficient thereby raising the
space of competition. There are many benefits and associated risks of globalisation which tends
to be affecting the the fashion industry like Asos.
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Asos has used globalization of industries and is providing services and fashion products
to more than 190 countries. It has grown to a large extent in the last five years serving customers
all over the globe with fashionable products (Salas and Martin, 2017).
Legal transformations
Since Asos is a legal entity it needs to accomplish various legal regulations such as
Articles of Association and Memorandum of Association for both public and shareholders. As
the globalization has opened various doors to expand it has brought in more concrete laws and
regulations for the fashion industry Asos (Wu and Chiu, 2018).
Various anti-trust and discrimination laws are adopted by Asos to safeguard its
employees and customers. The health and safety responsibility of the company for its employees
is also a major decision taken at Asos. The laws and rules of countries changes from time to time
and retail industry like Asos needs to change its operations and working environment so as to be
with the trends and help workers and customers fulfil their needs.
Global economic issues
Economic changes and trends such as new reforms and financial crises affects the
operations of organizations. Asos has been drastically affected by the changes in inflation
brought in by the financial crises of 2008 (Strategic growth in the fashion retail industry, 2018).
Though the company grew again using the growth factor and other resources of the various
countries in which it operates. The economic changes such as new levels of education also
affects fashion industry as new trends are overpowering the market. Thus the company needs to
achieve competitive advantage in the long run through incorporating economic reforms into its
structure. The various labour laws needs to be complied by the company so as to remain in
industry (Brotchie, Hall, Newton and Nijkamp, 2017).
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All these factors impact the Asos scale of operations as well as its decision making
practices. The company needs to undertake critical evaluation of current trends and recent
developments so as to remain in competition with others gaining competitive advantage. The
emerging themes such as internet and digital technology has provided wide space to expand by
the retail fashion industry.
2. Impact of emerging themes on the operational and strategic decision-making of Asos
Fashion industry is a multi-dollar industry ion today's era and accounts for around 3
trillion dollars all over the world (Salas and Martin, 2017). The Asos is one of the leading
fashion retail industry present globally earning profit of £7 million annually. The company
expanded its business both horizontally and vertically integrating with competitors and suppliers
so as to expand scale of operations.
The impact of emerging trends and developments on Asos operational and strategic
decision making system are several. As with the advancement of technology, businesses are
incorporating recent trends so as to stay competitive. (Kadam, 2018) Though increase in growth
rapidly may have negative impact as it incur costs to implement newer technology and expertise
training to learn new techniques. For instance, Asos has incurred huge expenses on warehouse as
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Illustration 1: E – Marketing
(Source: Salas and Martin, 2017)

the sales of the company increases. It has also incurred on various legislation towards employees
for their safety and health (Brotchie and et.al., 2017).
The emerging themes and changes has affected Asos fashion industry in the last five
years as the company integrated it business by merging which has incurred cost of employing
more workers and managers to take managerial decisions. As it has expanded, Asos has
developed a more hierarchical organisational structure, with individual departments responsible
for specific functions such as warehousing, product design and merchandising (Banich, 2018).
The effect of Brexit has also impacted strategic decision-making system of Asos as
companies needs to export at higher prices from other suppliers and not European suppliers. The
market fluctuations and volatility impacts on the growth and development of the organisation but
due to efficient employees and effective management, the UK fashion industries are flourishing
in the domestic and global economy adequately (Bogers and et.al., 2017).
The changes in social trends and demographic changes impel organizations based on
fashion to change their clothing styles. Asos has changed its operational units due to changes in
societal trends. The company has made shopping enjoyable, and fun for customers which no one
has ever thought about. The company has evolved its online base by entering into editorial using
style advice blogs and newer technologies such as live chat etc. All these technological changes
has forced Asos to make critical decisions which has impacted the organization financially.
The impact of newer reforms has helped company to make quick decisions as various
other firms are competing to grab the market share (Au, Taylor and Newton, 2008). Thus,
operational decisions has to be taken quickly by managers as time consuming process will
impact negatively on the overall organizational growth. The changes and newer technology
brings in new methods of production and distribution and is very crucial for a fashion based
retail industry like Asos to incorporate such technology. With globalization the entry and exit of
firms has become easy which forces organizations to enhance their performance so as to remain
in competition. Thus, Asos needs to take crucial decisions involving its production plans so as to
compete with newer firms as they have new ways and improved technology (Brotchie, Hall,
Newton and Nijkamp, 2017).
The decision making system either operational or strategic is a vital task performed by
managers at an organization (Council, 2010). The system of making decisions by the top
management is affected by environmental changes which is uncontrollable and has to reverse the
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decision by managers so as to remain in the competition. The changes in economic reforms of
countries as Asos is working with 190 countries affects the decision making power of mangers
(Au, Taylor and Newton, 2008). The technological advancement needs to incorporate by
managers and proper training needs to be implemented. The changes in political environment
affects decision making power of top managers. While the changes in legal system such as
various laws for employees and customers needs to be integrated in the business environment to
be productive in the market thereby enhancing brand image.
3. Recommendations to manage the impact of emerging themes
The various recommendation underlined so as to keep up with the changes and grow in
the competitive environment thereby making profits.
The smarter and fashion prone customers are posing threats to organizations engaged in
fashion products to produce attractive and fashionable goods. Thus, Asos needs to implement
strategies for positioning its products and services in such a way as to gain competitive
advantage over others (Brotchie and et.al., 2017). The company should focus on operational
excellence, product leadership and customer intimacy while segmenting its fashion products.
They should also emphasize on competitors strategies and produce quality products for their
customers thereby adding value.
Asos should look into the various business practices and philosophies and create valuable
stuff which is based on deep and creative thinking so as to improve customer satisfaction
(McRobbie, 2008). The company should incorporate new technology and advances structure into
its production unit as and when they arrive as globalization has made entry of new firms easy.
The company should also undertake social changes and implement the same into its process as
consumers today are active social beings who gives more emphases to environment and society.
(Salas and Martin, 2017)
The most company seek to grow and the company wants to addition the profit to their
shareholder. In the Asos the company justify their development in business. the company require
large storehouse and distribution operations. A company develop in several ways, the growth by
simple selling more of its goods. This known as company internal development or structured
growth those development seems to be a positive growth. More ever justified that Asos have
business who have growth to describe company’s popularity and their market conditions. Asos
have provide facilities to ordered online those facilities are same as other system but the Asos
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have millions users they lead daily website in large scale (Brotchie, Hall, Newton and Nijkamp,
2017). The company primarily applied online marketing and effects on the that positive, the
company have large online market, the numbers of people daily ordered on company.
When a company very tiny manners, a manger trends to takes on most managerial
functions as company grows , it often introduces to new layers of managements and organises its
self into specializer departments. The Asos changing in quickly market that effects on increasing
cost rates and the company going to popular, the reasons of its they presents time-to-time articles
on the websites and advertisement of company. The company easily handled the growth of the
company and easily handled the popularity. The easily makes sure that the customers receive the
highest standard services. Effect of growth on company, the company become largest retailer
company. there are following points which effects the organisation:
 Cost effective- The Asos some times company presents extremely brands products which
effect on his cost, and development (Brotchie, Hall, Newton and Nijkamp, 2017). An
organisation to presents the products services in cheap price otherwise this effect on his
cost and popularity. For example- in the market company present products in highly cost
and comparison to other company have same products but their cost is low. So customer's
interact to low levels products. Because as the same products selling in low price.
 Maintenance- Any organizations can maintain their products, services they also depends
on customers satisfaction. The Asos have millions customer's they straight link to
employees and employees transmit them emails and provide more data about products
and services (Bogers and et.al., 2017). For example Asos have daily millions target's of
orders. They maintain all the target and full fill them according to clients requirements.
 Improving quality- according to customer's demands Asos examine all faults in the
products and then they implements them to their products. According to customer's
reactions Asos improving the products quality and ensure them (Salas and Martin, 2017).
 Integrity effect- the company can also desire to increase the strategy of plumb
integrations. This is when is happen accuracies a business at in difference stage in chain
of productions. It also adopt business that were previously its suppliers or its customer's.
For example Asos company supplying furniture in retails price in numbers of orders. But
rules of the company they sale products directly to consumer not any other.
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 Effectively services- Asos have many retailers store like jewellery,beauty
products,fashion products etc. those products have good quality brands services are more
then good (Banich, 2018).
CONCLUSION
The above report shows how various changes and new trends coming in market impact
strategic development of organizations. The changes in the environment both macro and micro
has impacted Asos, a leading fashion retail industry selling online clothing for both men and
women. The company has seen huge growth in last five years by expanding its market area to
190 countries as well as establishing a strong online website for positioning its products and
providing a platform for selling goods to customers which includes clothing, accessories,
jewellery and beauty products.
The impact of these changes has affected its decision making system by the top
management which involves crucial analysis of various factors so as to be in competition.
Another thing incorporated in the report shows the various recommendations being provided so
as to be competitively active in the market place. Another important suggestion to incorporate
emerging themes is to be enhance the internet facilities and web services in an excellent manner
which will impact the overall sales of the company. Communication needs to be stronger so as to
remain in the market. The company needs to have a proper hierarchical structure so as to achieve
business objectives efficiently.
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REFERENCES
Books and Journals
Au, S. J., Taylor, G. and Newton, W. E., 2008. Grounded Design Theory Of British Fashion
Designers. Research Journal of Textile and Apparel. 6 (1). pp.63-81.
Banich, M. T., 2018. Emerging themes in cognitive control: Commentary on the special issue of
Psychophysiology entitled “Dynamics of Cognitive Control: A View Across
Methodologies. Psychophysiology. 55(3).
Bogers, M. and et.al., 2017. The open innovation research landscape: Established perspectives
and emerging themes across different levels of analysis. Industry and Innovation. 24(1).
pp.8-40.
Brotchie, J., Hall, P., Newton, P. and Nijkamp, P., 2017. The future of urban form: the impact of
new technology. Routledge.
Council, B. F., 2010. Inspirational Pattern Cutting UK: British Fashion Council. Directed by
British Fashion Council.
Gao, Y. and Reitz, S.R., 2017. Emerging themes in our understanding of species displacements.
Annual review of entomology. 62. pp.165-183.
Kadam, K. P., 2018. Changes in Foreign Direct Investment Policy of India and Its Impact on
Economic Development. World Academy of Science, Engineering and Technology,
International Journal of Humanities and Social Sciences. 5(6).
McRobbie, A., 2008. British Fashion Design: Rag Trade Or Image Industry?. Routledge.
Salas, E. and Martin, L., 2017. Decision-making under stress: Emerging themes and
applications. Routledge.
Wu, L. and Chiu, M. L., 2018. Examining supply chain collaboration with determinants and
performance impact: Social capital, justice, and technology use perspectives.
International Journal of Information Management.39. pp.5-19.
Online
British Fashion Council. 2017. [Online]. Available through:
<https://en.wikipedia.org/wiki/British_Fashion_Council>.
Strategic growth in the fashion retail industry. 2018. [Online]. Available through:
<https://businesscasestudies.co.uk/asos-com/strategic-growth-in-the-fashion-retail-
industry/communication-to-support-growth.html>
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