ASOS' COMPETITIVE FACTORS

ASOS' COMPETITIVE FACTORS

1. POLITICAL

   • Political decisions impact and therefore influence the economic environment.
   • Political factors affect the socio - cultural environment too.
   • Workers rights, (wages, hours) & child political laws have been spoken about with frequency over the past few years.
     • A happy & positive working environment must be put in place to ensure health & safety is always taken seriously. Laws must be obeyed.
   • Asos must be aware of and prepare for a shift in political power
     • By doing so now, we will be able to respond to change quicker, thus 'beating' their competitors and keeping their business running as normal, (cash flow/materials/ employees/structure.

2. LEGAL

   • Policy: Minimum Wage.
     • Minimum wage is a law - it must be obeyed by Asos at any given time, under all circumstances so as that no problems arise e.g. get in trouble with the police or government. If not, employees will be unhappy and will look for work elsewhere, causing an employment issue both short & long term.
   • Asos' Ethical Code Of Conduct - the minimum standard that is expected from all suppliers & manufacturers of Asos.
     • Asos' Young worker/Child Labour Policy: Must not get found trading wrongly as it will cause major backlash, a bad public image & reputation. To keep a competitive edge, Asos should avoid doing so at all costs.

3. ENVIRONMENTAL

   • Already up - cycling our goods in the 'Marketplace' section of the website.
     • T'he Green Room' is a brilliant idea - it clearly portrays our dedication and understanding of ethical fashion - making it more desirable by a customer who specifically wants ethically manufactured goods. By being completely eco - friendly, (small amounts of packaging & reducing emissions), Asos will be seen as more sustainable & therefore much more attractive to customers.
   • Weather & natural disasters affect the production of goods.
     • Factory fires & transport problems affect delivery to customers - major backlash could occur. To stay ahead of competitors we will ensure to prepare for potential problems to allow the business to always run as smoothy as possible to gain a competitive edge.

4. ECONOMIC

   • Asos are continuously preparing & adapting to the changes of the economic environment - including inflation fluctuations, economy growth & stability.
     • This ensures that we are aware of the potential changes & can alter easily & therefore be more effective in responding to the change than other retailers will be.

5. SUPPLY CHAIN

   • Fast fashion makes for a quicker turn - around of stock in the warehouse and delivery time is faster.
     • This means that we are, in a short space of time, receiving a great deal of sales & therefore additional profit that some retailers as yet do not get.

6. SOCIO/CULTURAL

   • Magazines - Glamour, Marie Claire, Red.
     • We can read into the latest trends & advertise - a key aspect in keeping up with our customers and what they want from us as retailers.
   • Social Media.
     • We can view on social networking sites & blogs what customers think about us and what they want - easily respond to requirements & alter to suit the needs of their customers. They can build customer relationships which could amount to further sales & profit.

7. TECHNOLOGICAL INNOVATION

   • Apps e.g. phone, social media, magazine.
     • More apps make for a larger customer base. Mobile advertising means that we are fast, flexible, fragmented & efficient in responding to technological changes in the current environment. It allows us to be more personable with our customers giving us a better image, value and reputation so we can compete well with rival retailers.