E commerce has been a wider platform concern for serving the requirements of customers. People tend to show substantial amount of interest in getting their products and services through e commerce (Stake, 2013). The case study discusses regarding an online company, named asos.com. It is a fashion store offering apparels to women and men. It has been able to enjoy approximately 3.3 million unique shoppers with 1.8 million of registered users. The company is able to experience 220,000 unique visitors daily. The case has made a discussion regarding rapid increase in the overall demand of e commerce websites as people have got highly dependent in getting their products and services through online orders. The case makes a comprehensive discussion regarding present and expected condition of the organisation based on enhanced demand of online market and availability of high degree of competitors.
The report will be responsible for critical assessment of the facts and figures that have been shared in the case study. It will help in analysing the e commerce industry with various point of views such as impact of political environment, constant advancement in technological aspect and demographic changes that takes place in the country (Hassini, Surti and Searcy, 2012). The report will also make discussion regarding shift and change in social trends and its direct impact on e commerce industry. Legal transformations and industry globalisation impacting online business will also be duly analysed in the report in comprehensive manner. In the end, justification and recommendation regarding the same will be provided to the company for its better functioning.
asos.com is the UK's leading enterprise which deals in the online fashion stores of women and men. They launch their products and services from online retailer to target people who are fashion conscious from 16 to 34 years old. In this aspect, following consideration included to make discussion on the topic:
The product life cycle
In the product life cycle, different stages implemented that assists to consider time in term of sales. In individual consideration, products consider develop market and make wider trends as well. In the retail market, life-cycle also follows to make growth slowing down. In contradicting, online retail industry make huge growth from introduction from 1998 and 2002. In this way, growth also develop with consider changes that occurred and move from selling. In the fashion industry, product life cycle developed with trends and taste changes regularly (Piotrowicz and Cuthbertson, 2014).
- Introduction: In this step, dress material available on the website. Therefore, fashion leaders adopted new item to give prominence with newly launched product on their website. For instance, create link with item that are available on home page (Nandonde and Kuada, 2016).
- Growth: asos.com also requires concentration to make ensure that adequate stock for customers appoint. When item consider in the growth stage, it tends to promote products and services in the newspapers and magazines.
- Maturity: In this step, asos.com need to remind people for their product online with example. In this way, trends are shows on website and newsletter. It takes order for more stock to ensure supply (Fernie and Sparks, 2014). On the basis of regular repeat orders, it gets successful outcomes.
- Saturation: In this aspect, asos.com need to diminish their products price on remaining items so that sales consider opportunities to make warehouse for new elements.
- Decline: It is the last step in which product replaced with new items so that fashion trends moves with systematic aspect.
In contradicting view, there are different stages due to which product introduced in the development aspect. Hence, asos.com need to choose material, style and colours to produce design. asos.com also developing their new products as per the customer demand with the latest trends which seen in the magazines. New product development includes stock that are need to purchase, website with updated pictures and fashionable items, ordering system and risk ascertain that is associated with the item (Gill, Bunker and Seltsikas, 2015).
asos.com considered easy operations for customers to increase effectiveness in the business. In this regard, huge range of brand develop with systematic work performance. High street and designer labels helps to implement operations on the one website. Further, leading in clothes designers and fashion house sell products in a good way to reach wide and international audience. Therefore, it will help to attain more systematic work performance to provide choice, value, service, etc. (Wolf and Troxler, 2016). In order to make high growth in the company, entire products of the company ascertain to make fashionable products and services. In this matrix, following analysis consider in product categories and plan strategies:
- Poor performance on items decline products which failed to launch so that it refereed as the Dogs sales and profits are comparative low.
- Question marks consist new items which launched to do very well.
- Stars are consider items that grow very quickly to make more money in the business.
- Cash Cows help to earn more money to implement own label dresses for continue development (Bocken, Short and Evans, 2014).
asos.com face several challenges such as convert the question mark and star into the cash cows through increasing and extending promotion. Management of the Dogs through remove items and cutting costs to increase sell very quickly. Profit earning from cash cows used to develop and promote stars.
Most of the businesses are looking towards the growth and business development. In this aspect, profits and shareholders performance increasing continuously to increase overall volume and reduce significant cost as well. It is known as the economies of scale. For instance, asos.com requires larger warehouse and distribution operations (Diallo, Burt and Sparks, 2015). Hence, transaction will be managed very well and find easier to do operations and functions. It helps to deal with goods and services in larger consideration. Organisation can also grow in several ways to do their work in systematic consideration. It is known as the internal and organic growth to merge operations with different types of businesses. External growth could be made through consider large perspective and make easier work in the business. However, in other words it can be stated that better deals in the business could be made with suppliers participation (Fotiadis and Stylos, 2017).
The chosen business could be grow in different ways so that it simply selling more products and services which is known as the internal and organic growth. It also helps to grow merging with the other businesses so that external development could be made in systematic way. It is quicker development to implement more fund in the acquisitions (Høgevold, Svensson and Padin, 2016).
In respect to focus on the creativity, the organisation has opportunity to implement acquisitions that adopted with the two main strategies. It helps to pursue horizontal integration in the chosen business that occurs with merges and direct competitors as well. For instance, in the supermarket there are different competitors exist that acquired rival for safety chain. It is classic example to implement horizontal integration. Every enterprise could able to implement some innovations with seeks to their business grow in vertical integration. It helps to acquire business in different stages with chain of production (Hyseni, Brown and Gannon, 2015). asos.com accomplish rapid growth in different sector consideration to acquire other enterprises. As results, it grows with high customer base so that number of brands increasing with available products which could be buy any time. In addition to this, rapid growth of the company can also create problem in some businesses due to low rate of development.
Impact of rapid growth
In first consideration, rapid growth seems to make positive occurrence which help to solve problems and grow very quickly. In respect to run for business development, demand also generates with additional costs so that it help to fulfil order as well. For instance, it needed extra staff members to meet with the expenses that occurs and perceive with additional sales in the business that lead with the cash flow difficulties (Jere, Jere and Aspeling, 2015). In addition to this, asos.com has enough capital to produce more and surge with the finance to face issues and problem that occurs in the business. It runs with the logistic difficulties to make short term consideration in the business environment. In order to make high growth in the business, it is the successful operations and functions to focus on the current customers. Primary objectives of the business is to get more customers with increasing customer awareness that appeal to make effective functioning in the business. asos.com also consider their operations and functions to buy particular clothes online in particular month of the business. There are more than 26 million customers who buying products from the market.
As per the view of Steward, Narus and Roehm, (2018), product life cycle consider important role in the asos.com. It is one of the large fashion industry and fast moving. Therefore, it considers functions and operations to work in systematic aspect during the particular year of time. Along with this, it is also leads to the effective position and buying process for make effective plan. Fashion designers launch of clothes consist important role to develop effectiveness in the promotional tool. On the other hand, Burt, Johansson and Dawson, (2015) stated that the chosen business enjoy with extended their product life cycle to attain desired results in systematic manner. In this way, large international market consider with southern hemisphere in the season of UK. It combined with the increasing trends in systematic manner. Therefore, effectiveness in the business also develop in UK. According to the view of McMorrow, (2015), understanding product life cycle is develop to make systematic work performance in the business environment to look upon the managers greater control. It helps to predict and increase revenue within effective flow of the product line and development. Plan in the introduction considered different products and services that are seasonal. Other elements of the business carry that are in greater control. In this way, prediction also increasing revenue that withdrawal products in systematic manner. On the other hand, Høgevold, Svensson and Padin, (2016) argued that certain products considered classic blue jeans in longer cycle to provide regular assistance. Hence, it increases long term outcomes for business development and creativity as well. It will help to focus on the managers' performance which essentially required for business development and consider promotional activities as well.
In contracting, Piotrowicz and Cuthbertson, (2014) said that product life cycle support to different kinds of products which considered pricing strategies to extract and increasing revenue as well. In this way, at every stage promotional discount used to encourage several people and purchase new products as well. In this way, new product could be purchased when it launched by asos.com. Pricing strategy that is limited to the edition dress also consider to make effective functioning in the business. However, Diallo, Burt and Sparks, (2015) explored their ideas and views that price reduction also used at the end of the cycle when item is less consider in sales and declining as well. In this way, activities design according to the systematic consideration that assists to look towards the innovative functions and operations in the business environment. With the help of the some useful fundamental aspect, it develops creativity and effectiveness in the business to make proper concentration in the sales. Furthermore, Piotrowicz and Cuthbertson, (2014) generated their views that promotional activities design to provide potential customers with the effective information towards the products and services. In this way, sales of the chosen business increasing with customer relationship management system that assists to understand buying pattern which means that there is wide group that consider important role in the different attitude and appeal that influence to spend money. In order to implement the user information, asos.com create their promotional activities to design and gather relevant information towards the business. Along with this, Diallo, Burt and Sparks, (2015) develop their ideas and views with website registration so that information gathering towards the customer for attract them and attain effective results as well. It helps to focus on the active customers who are generally regular buying products from the enterprise. asos.com always trying to produce creativity and perform innovative functions to make sure that systematic results will be gain at workplace. It also considers adoption of maximum customers towards the business to increases its effectiveness.
In respect to implement the innovative and creative functions, it has been analysis that asos.com dealing in different kinds of products and services to make systematic work performance at workplace. With the help of the high fashion clothing industry, it has been stated that it grow very fast and continuously develop their operations to focus on the most effective consideration at workplace (Fernie and Sparks, 2014). More than 22000 products which possess different styles has been adopted by the business to make sure that company attain effectiveness in the business. There are around 1.2 million customers regularly active with this company website so that effectiveness will be develop in systematic manner at workplace.
In respect to make proper focus on diversify activities, it is important to look towards the online retailer to get creativity at workplace. In this aspect, asos.com focus on the high fashion clothing for women, men and children. They all are attracted towards the business to focus on the footwear, accessories, jewellery and beauty products as well (Hassini, Surti and Searcy, 2012). These considerations help to target primary audience who belongs from 16 to 34 years. Beside this, company also grow with the operations and functions in the business unit. In respect to make proper consideration, online registration and customers are also provided with email address so that the chosen business able to deliver updates information in the business unit. New products and offers are considered twice in a week so that there are around 2.7 million customers are generally targeted towards the effective functions and operations.
In order to analysis the database, it has been seen that there are around maximum customers who typically buy and often purchase from the chosen business. In this aspect, target audience considered by the promotional activities which directly segment customers towards the business. In respect to estimate about the products, asos.com appeal to individual customers when they target with promotional activities as well. On the individual basis, this activity consider for younger customer for interested candidates and sale jeans and jacket (Nandonde and Kuada, 2016). Customers are also bought dress from the chosen business so that effectiveness could be increasing to concentrate on the different range of products and services in the business. Designer shoes and handbags also made by the company so that customers are targeted to focus on the creativity and innovation of the business.
In order to measuring the responses from promotional activities, it is important to look towards the performance indicators. In this aspect, it can be stated that effectiveness could be measure in the chosen business to promote products in the businesses' environment. In respect to implement measurement, responses also develop with the promotional activities to consider key performance in the business. It will help to focus on the different products and services that assists to implement at workplace (Hassini, Surti and Searcy, 2012). Hence, it included several aspects such as emails that are considered in it, clicked, etc. In respect to evaluate this aspect, asos.com can get picture that how many customers exposed to the promotional methods. It helps to make continuous growth in the market for business development. The chosen organisation generally target those customers who are more concious about the fashion. It will help to increase internet access and grew with 45% in same period. Therefore, more than 42 million people encourages towards the different connection in the business. It will assist to make specific target market as per the research areas consideration. In respect to this, extensive and diverse range of products will be develop in the business to ascertain systematic results (Fernie and Sparks, 2014).
Fashion rapidly grow in the market for consider effective results. In this way, different activities has been implemented to grow systematic results. In this way, asos.com develop their effectiveness with growing online trends and market demand. Furthermore, visitors and purchases also make their concentration to demonstrate successful planning in the business. Therefore, it will help to make several innovations and growth at workplace. It also providing excitement and development program to deal with the updated information. Therefore, it will help to make concentration on the new fashion items and target customers as well. In this way, personalised communication also play important role in the promotion strategy to focus on the creativity. Continuously development in the society help to make innovative results and attain more profitability at workplace. Hence, it makes high growth that help to take initiatives to make growth and develop responded within the one hour.
In order to understand the customer demand and requirement, every one can implement creative results at workplace. Therefore, growth of the business also make to implement new product life cycle for strategic growth in the fashion industry. In this industry, customers demand need to understand so that customers could be targeted to make more profits and revenue at workplace. In respect to understand needs of the customers, products are also sent as a sample to make effective functioning in the business. It ensures that customers are attracted towards asos.com through concentrate on their demand and requirement. In addition to this, report summarised about the critical analysis through it can be stated that it assists to make innovative results at workplace and look towards the customer retention. With regards to make effective performance, extensive products and services implemented to develop creativity at workplace. As results, it assists to target more customers in the business and focus on their needs as well.
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