SWOT Analysis

Internal Strengths:

Merchandising:

• Features an exclusive and diverse array of brands.
• Features a unique variety of product categories, including men’s and women’s clothing, accessories, and footwear as well as makeup.
• Maintains innovative ways to display merchandise to customers and interactive ways to shop, including customer created looks, company edited fashion trends, and the ASOS marketplace.
• ASOS offers free shipping as well as free returns to its global customer base.

Marketing:

• ASOS maintains a blog on its website that features content on a variety of popular areas including music, movies, celebrity styles, and the latest fashion trends.
• A monthly ASOS magazine is produced, giving customers an editorial view of the ASOS merchandise and brand.
• ASOS connects with its customers through social media platforms including Twitter, Facebook, Instagram, Tumblr, Youtube, and Google+.   

Financial:

• ASOS is experiencing international expansion and growth.  Sales outside of the UK grew by 64% to £332.6 million.  Additionally, the company experienced a 91% growth in the US.   International business now accounts for 59% of total sales.
• ASOS is on track to achieve sales of $1.13 billion, resulting in $77 million of profit.

Management/Operational:

• New international supply chain platform, Allport, increases visibility and cooperation across ASOS’ international supply chain.
• ASOS employs knowledgeable, passionate employees that ensure the brand is continuously innovating and growing. 

Internal Weaknesses:

Merchandising:

• As ASOS is online only, customers do not have the option of trying on  or feeling the clothing prior to purchase.
• To turn into a strength: ASOS should feature digital ways for consumer to interact with their merchandise, such as the runway videos they feature.  They could implement a more advanced zoom feature, such as the one utilized by Burberry, to give customers a more accurate image of merchandise.

Marketing:

• ASOS does not advertise on any marketing platform.
• To turn into a strength: ASOS can begin to feature advertisements in publications that appeal to its target market, such as Nylon, Glamour, and Marie Claire.  Additionally, they can feature advertisements on blogs targeted to their consumers. 

Financial:

• The free shipping service provided by ASOS costs the company 100 million pounds on an annual basis.
• To turn into a strength: Improve logistics to streamline the shipping process, cutting down on costs and creating a more efficient delivery system. 
• Around 30% of purchases are returned to the company, resulting in additionally shipping charges for ASOS.
• To turn into a strength: Through improved logistics, ASOS can cut down on the cost of returns, and continue to provide its customers with this service.  Additionally, they can continue to improve the digitalization of the site, to give customers a more accurate image of items prior to purchase.

Management/Operational:

• ASOS produces its merchandise in five contitnents, causing logisitical as well as costing difficulties.
• To turn into a strength: ASOS can continue to improve their logistics as well as their supply chain, to create a more efficient and effective system.

External Opportunities:

Economic:

• Consumers are willing to spend more money on unique products, which is advantageous to the diverse, exclusive brands features at ASOS.

Consumer Trends:

• Consumers continue to make more purchases from mobile platforms, including phones and tablets.

Industry Trends:

• Retailers continue to innovate with mobile platforms and applications where shoppers can view their merchandise through the convenience of a phone or tablet.
• Globalization is expanding the reach of retailers, as they are able to connect with consumers across the globe and grow their businesses.

Competitors:

• Competitors feature a limited assortment in their merchandise, lacking the diversity and exclusivity that ASOS creates with their brands. 

External Threats:

Economic:

• Uncertain economic times means consumers have less money to spend and are careful regarding where and how they spend their money.
• To turn into an opportunity: ASOS offers consumers free shipping and returns, which cuts down on the cost of purchasing from the site.   Additionally, they can continue to expand their private label offerings, which are featured at a lower price point, appealing to consumers that have less money to spend.

Consumer Trends:

• An emphasis is placed on the consumer’s experience in-store while they interact with sales staff and the merchandise.
• To turn into a strength: ASOS can continue to make their site more interactive to enhance the consumer experience on their site.

Industry Trends:

• Many retailers are entering the market, featuring only e-commerce platforms to sell their merchandise:
• To turn into an opportunity: ASOS must continue to differentiate their site through their unique assortment of products and brands as well as the consumer experience on their site.

Competitors:

• Many retailers feature an e-commerce site in addition to their brick and mortar stores, giving the consumer the option of how to shop as well as the ability to feel and try on merchandise prior to purchase.
• To turn into an opportunity: ASOS can continue to enhance the interactive aspects of their site, to differentiate from the competition online. Additionally, enhanced digitalization will improve the customer’s ability to interact with the merchandise.  Continuing the free returns service will enable consumers to purchase online without worrying about the cost implication of they change their mind about an item.
• Larger retailers existing in both digital and physical form may have more brand recognition than ASOS, as they gain consumers through foot traffic as well as their online platform.
• To turn into an opportunity: ASOS must continue to differentiate their site, to draw consumers to their online platform.  Additionally, through partnerships and advertisements on blogs and publications, ASOS can continue to drive more traffic to their site.