strategic management Essay

Table of Contents
Introduction 4
Internal Environment Analysis 5
Resources Map-out 5
Tangible Resources 6
Intangible Resources 6
SBUs 7
External Competitive Environment Analysis 8
Trading environment and Regional Market Performance 8
Future Scenarios 12
Potential Strategies 16
Selection of 2 Strategies and Proposal for Implementation 18
References 21
Appendices 23

List of Tables
Table 1 ASOS's resource map-out 5
Table 2 ASOS's SUBs analysis 7
Table 3 SWOT analysis of ASOS in the UK 9
Table 4 SWOT analysis of ASOS's China market 11
Table 5 Future Scenario Planning PEST analysis 12
Table 6 Impact of Scenarios in Industry 15
Table 7 Potential Strategies Outline 16
Table 8 Opportunity and Threat recognition in SDMP 19
Table 9 Opportunities and threats analysis of China market for eco-fashion 20
List of Figures
Figure 1 Global positioning according to Comscore, source: ASOS PLC (2015d, p.4) 9
Figure 2 Scenario Planning Process, selection of 12 most important factors 14

Introduction
ASOS is a fashion retailer digitally born and operated across the world.
ASOS’s current aim, according to its official organizational website, is ‘to become the number 1 fashion destination for 20-somethings globally’ (ASOS PLC, 2015a). The company has been regionally dominating the fashion e-Commerce sector in the UK for recent years and now it has been expanding itself to other markets including the US, Europe and China. However, with its strong financial power and globally reputable image, the firm is still facing profit reduction and this report will analyse the internal and external environment of the firm and propose several justifiable strategies.

Strategy is a complicated concept yet it is essentially important to the maintenance and development of an organisation. In implementation, it tells the direction and scope of the business, both of which should be applicable for short term and long term objectives. The ultimate outcomes of the strategies applied, if favourable, should be competitive advantages of the firm that push and keep the firm in the competitive edge of the business sector that the firm operates. The formation of a strategy is the process in which internal and external resources and environmental cues are analysed in a combined way so that competences will be highlighted, developed and leveraged to fulfill stakeholder expectation. Thus, the report will follow the logical steps outlined above and starts from an analysis of the current resources the firm holds.

Internal Environment Analysis
The internal environment analysis is a process for self-detection of what resources the firm has internally and whether all the firm activities equates with its current strategy.
Resources Map-out
Table 1 ASOS's resource map-out
Resources
Aspect
Outline
Tangible resources
Financial
Revenue has grown by 27% compared to last fiscal year. In 2014, the firm achieved £975.5 million revenue with £485.0 million gross profit (ASOS PLC, 2015a). However, profit after tax has been reduced by 11%, down to £36.6 million compared to £40.9 million in 2013 (ASOS PLC, 2015).

Physical
Based in London and with offices in New York, Sydney, Lille, Berlin and Shanghai, the firm operates the website in multiple languages and ship to almost every country in the world (ASOS PLC, 2015b).
The current main warehouse is based in Barnsley, UK with other warehouses in the UK, Germany, and China and a returns centre in Australia (ASOS PLC, 2015b).
Intangible resources
Technology
The firm is using more than one channel (the online store) to enhance its customer touch points. It is stretching its shopping platforms beyond the website and onto smartphones, tablet apps and monthly magazines posted to every existing customer (ASOS PLC, 2015b).

Reputation
The firm has a good reputation among 20 something customers globally with more than 2.2 million followers on Google+, 788,000 followers on Twitter and 3.46 million likes on Facebook, plus 2 million

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