AsSeenOnScreen – Strategic Management Analysis

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Identify ASOS Plc key stakeholders and map these stakeholders regarding the power/interest grid. Critique, with supporting commentary, which of these stakeholders will need to be repositioned over the next 12 months.

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“AsSeenOnScreen – Strategic Management Analysis”

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In 1995 Nick Robertson and Quentin Griffith co-founded entertainment marketing limited. Perhaps the initiative was meant to use media houses to advertise their goods to viewers at the age of sixteen and above. Nick was an advertising specialist while Griffith was a brand placement expert. The two young men were the key stakeholders who managed to clinch Pepsi, British Airways, and Carlsberg among others totaling seventeen clients. In 1999 Deborah Thorpe joined them creating an online fashion supplying company known as AsSeenOnScreen to sell some focal items. Most clients admired the items when seen being used in the media screens and films like Mariano Fortuny lamp which featured in an episode of sitcom friends. Nick Robertson was the managing director, Griffith being the sales and marketing director while Thorpe who had media houses professionalism as a broadcaster in channel 4 played a role in running commercial errands in the company (Varley, 2014, p. 88).

The AsSeenOnScreen Company was officially launched in June 2000 offering almost one hundred and fifty items especially fashion materials and houseware items. Griffith started to discharge his mandate role by setting commodity limit to sustain quality escalation. He said they were keeping down the range of stuff to introduce and familiarize new items rarely seen on the screen. At the same month, they merged both enterprises into asos.com to raise enough revenue to augment their cost-effective status and operations across the Europe. The business was not fairing on well, and as a result, Thorpe resigned from the board in 2001 thus becoming an inactive member.

Lorri Penn joined the board as a retail director and introduced a crucial strategic plan to revive marketing affinity of the company. She persuaded her directors to purchase and advertise new fashion brands such as wardrobe materials, beauty accessories and footwear’s which are inspired by celebrities. Penn targeted wardrobe materials worn by celebrities like Madonna (Moore, 2016, p. 115) or Spice Girl Geri Halliwell. Soon she became a very instrumental and industrious stakeholder, in 2001 she planned to focus on local markets to distribute domestic accessories and leather jackets, the primary intention was to uplift local designers, street suppliers and middle-class clients who have little chances of accessing internets or have no knowledge of online shops at all.

The Penn’s idea made better sales on fashions than home accessories. She proposed to source their products from the United States where much of cloth line fashions are labeled or sponsored by famous male and female celebrities. AsSeenOnScreen Company once again signed a contract with Arcadia Group PLC to start a franchise at Topman stores, Oxford Street in London. However, Mr. Griffith was hardly pleased by madam Penn contemporary concepts. He argued that much offline client exposure is detrimental to online business. Quentin retorted that more opening of physical stores is costly and time-consuming due to shop fitting installations, rent, rates and stock (Molenaar, 2016, p. 50). He observed that what was being sold in the shops were directly proportional to sales made in ten stores yet there is no much physical outflows or expenses. It was quite evident the returns were insufficient to justify offline business mostly carried out in the numerous shops in the cities.

As part of strategic plans to maintain the enterprises’ forename as far as its activities are concerned, co-director Griffith convinced the board of directors to switch back to online commerce. In April 2002, they formed URL ASOS.com website which could accommodate more clients without itches (Varley, 2014, p. 247). In the mid of the year more specifically in May, the sales grew by 49 percent because there were no much emphasize on the physical stores. Sister stores which recorded fewer sales were closed reducing the supplemental cost of rentals and legal revenues required by city councils.

By the end of the year, Mr. Griffith had fully enforced the initial business ideologies of embracing internet and online business operations. In the meantime, they set on their television channel and telephone lines which enabled clients to take orders throughout the day, a 24-hour business operation. However, in December, they started struggling due to inflated online orders. Mr. Griffith was found pants down because he had not set a streamlined infrastructure which could efficiently respond to client upsurge. The orders increased suddenly, and the company had no enough stock as well as sufficient delivery means such as cars and dispersal workforce (Varley, 2014, p. 270).

Since the beginning, Mr. Nick barely brought any profit-oriented ideas despite company’s tribulation. He needed a less responsible position. A managing director position hauled many decisional responsibilities of he could never discharge due to for instance his age or lack managerial skills. In most cases, he did not contribute profitable decisions which could increase their turnovers. He was supposed to become an inactive business partner and the position be refilled by Mr. Griffith who severally brought ideas which brought expedient impacts on the business.

By employing relevant data from the case, conduct a five forces analysis of the fashion Industry. What do you conclude about that industry’s attractiveness?

AsSeenOnScreen Company did not clinch its market strong suit against the blues. It embraced vibrant strategies which were appropriately adaptive to our digital world. The ideologies in due course became critical driving forces in their business errands. First of all introduction to online shopping was a very innovative business idea and marketing approach in the domain. Placing materials online was done within hours as opposed to days wasted while refiling the exhibitions in the store around the cities. Secondly, the inquisitive clients were able to select the best-suited brand while relaxed in the comfort of their houses (Vecchi & Buckley, 2016, p. 287).

The ever-busy people in town could hardly concentrate on the exhibition situated in the streets thus sales being limited to store running cost. The primary target was the high population of young ladies and gent who are currently in love with dynamic fashion. The new concept raised the number of clients exceeded the product placement in the company’s warehouses. In 2013 nevertheless, the apparel and footwear brand was sold online. Clothes online sales increased by 49 percent in the year 2002 (Standard and Poor’s Corporation et al., 2013, p. 727) and its mobile sales were predicted to grow by more than ten percent by the end of 2017. These figures show that electronic shopping is a very lucrative concept if it will remain to be managed to the letter.

The introduction of wide range of products was another critical driving force. The merchandise was quite diversified, made of unique brands directly from the designers. The women’s clothing was displayed in a way that included footwear, handbags, jewelry, and makeups at very competitive price. The method was very interactive and self-explanatory to clients viewing online over their laptops and the company’s television episodes. The company has its designers who prepare its edited brands. Currently, AsSeenOnScreen Company offers free shipment of products to its global customers. To reduce operation cost, they signed a deal with Unipart Group of Companies to outsource their brand and providing logistic service as well (Richards, 2011, p. 252).

Thirdly, the company’s administration once again brought in a near breakthrough notion. They precisely comprehended that celebrities diversely influence the young generation. To capture inclined celebrity clients they introduced celebrity inspired fashions such as Madonna (Information Resource Management Association, 2017, p. 523). In June 2006, a co-director namely Robert Bready confirmed that adding more premium brands will increase the value of their fashion. To realize the dream, by the end of the year they launched company’s magazine which supposed to be delivered to clients along with their orders. The magazine usually contained various celebrities life history but its themes being more pronounced on fashion advises and varied superstar styles. The company had noticed that previously celebrities, sports stars and film sterling had been influencing what people had been wearing (Pitt & Koufopoulos, 2012, p. 43).

AsSeenOnScreen Company being the most substantial United Kingdom online fashion and beauty enterprise. Mr. Robertson and Griffiths sponsored an idea to create a high street and high-end style in a single website in the year 2002 (Bair et al., 2013, p. 166). Being an additional strategic business plan, it brought in a notable impression in the market environment. The idea tried to include low-income people who could not access internet services to shop. The street shops target a high number of clients who loved to buy new brands which were affordable as opposed to whole online and delivery costs. The same idea reduced perceived a risk of shopping and therefore sometimes the delivery is delayed. The buyers could engage in the inverse practice of selecting goods in the street stores before shopping via online or provided catalogs (Sethna & Blythe, 2016, p. 80).

And lastly, AsSeenOnScreen Company was kept to be a dynamic shopping site were nobody could hardly miss their brands. The stocks were keenly recorded and refilled on a regular basis. The depleting brands were ever restocked thus being assured that no client will leave the premises disappointed because of missing their items. It reputation earned a global market. They received essential orders from United States, Italy, Germany, Australia and Spain among other countries. Interestingly the company became science-friendly conscious; they partnered with Taiwan textile research institute to develop a light absorbing fiber (Rau, 2015, p. 26). The material could absorb light and emit it during the night. The scientific breakthrough then targeted transport personnel’s, sportsmen and traffic law enforcers.

The AsSeenOnScreen Company is currently a strongly based enterprise which will hardly stumble other than forging forward regarding returns accruement, global customer service and environmental conservation oriented. It is not only engrossed in making profits but also being concerned with the health problems by developing fabric which can reflect off hazardous illuminations such as carcinogenic rays.

Evaluate ASOS Plc resources and capabilities by utilizing the value chain framework. How is the company creating value? Discuss how the company could develop and improve further concerning this?

The company’s management realized that there are several untreated shopping habits. To reap better profits, they used the pattern as a focal strategy to create value for their products. Affordability was among basic approaches of accumulating the value of their fashions. They reproduced styles embraced by celebrities at a price which young ladies, gents, and students can afford (Murray, 2007, p. 58). The trends were not left behind; it was assured that cloths, footwear and beauty accessories were trendy, up to date and contemporary at an economical price. The styles being very different in the market, celebrity oriented and reasonably priced attracted more clients and therefore enough profits which could aid the company administration to introduce sales promotion and improved marketing infrastructure.

Fashion democratization or availing trendy fashion styles all over the world usually increased the value of brands in the shops. Clients were aware that the fashion materials might be expensive, but still, they purchase them. To reduce the prices, the company decided to offer a free shipping abroad. Consequently, the prices are almost similar around the globe as long as the materials and the accessories are from AsSeenOnScreen Company. The consumers are now very comfortable with purchasing them.

Efficient delivery is another way of maintaining the value of goods. AsSeenOnScreen Company has a 600000 square foot central warehouse facility in the UK (Hiles, 2008, p. 502). They produce their merchandise from all continents under the sun; the materials are converged at a central point to be sorted according to their size, fabric, color, and trends. The central distribution idea helps to justify and complete orders as soon as possible because all inventories are centrally managed. The staff works on a 24-hour basis to respond to clients chatting online (Hiles, 2008, p. 334). The blend of an efficient supply chain, as well as single distribution center, make it possible to maintain the company’s value of brands.

Waste reduction is also a way of keeping the value of their good without interfering with the proceeds. In the meantime, the company has cut off the size of fabric waste by almost hundred percent. The residue is being transformed into other profitable materials like pillows, couch cushions and bedding materials for pets. The efforts of decreasing carbon print is an environmentally friendly idea. The cost-saving strategies are once again passed to the consumers to keep the price at a reasonable margin.

AsSeenOnScreen Company in 2010 formed an online marketplace where models and trendy fellows can exchange business ideas as well as selling their product via the firm (Gorod, 2014, p. 182). From a business perspective, the company is creating a community of fashion-oriented consumers. As a result, the outsourced models acquire reasonable incomes as well as our firm getting a certain percentage of the sales. The general idea of connecting models with consumers is quite very interactive thus providing crucial data and client misgivings which enable the administration to improve its sales and fashion trends.

Public relation risk mitigation is also applied, there is all around the clock customer service desk which deals with online client complaints and inquiries (Chaffey & Smith, 2013, p. 378). The purpose of the public relation desk is to shed off any consumers’ notion of uncertainties concerning goods especially those have to send a cargo flight or shipments. Constant communication enables the clients to be satisfied and relaxed waiting for their cargo abroad. As a result, the company’s goods and services are valued due to increased favorable interaction and warranty.

To improve according to my opinion, the AsSeenOnScreen Company should invest in the community as well as overseas social and economic infrastructure. For instance, by providing essential social amenities to the immediate community will strengthen its reputation. The nearby population will change their attitude of viewing the firm as an enterprise which is solely meant to make profits to benefit its owners. People will consider the company as one of their own intended not only to provide amenities but also improve their healthy well-being.

Secondly, purchasing their delivery machines will do away with consumers’ risk possibilities. A company’s ship can deliver a huge cargo along the coasts of many countries where they have set sister shops. Every different shop should at least own a vehicle which can offload cargo from the docks and deliver to the required destinations at a reasonable cost as opposed to hired transport mechanisms. Light and golden materials should be delivered through a firm’s cargo plane to avoid risks of sea hijacking by pirates just in case they realize there are treasured and appreciating accessories in the ship.

What suggestions could you make to ASOS Plc Senior Management team to support their position in achieving sustainable competitive advantage in the global fashion retail industry?

Nick Robertson being the original business proprietor was the managing director. Unfortunately, he was not as effective as it is required. He was supposed to lead his co-directors to formulate and successfully implement company policies. It is quite evident that in most cases he did not take part in making the decision. Some of the plans made by his colleagues were not effective due to lack of his hand. Ideas like setting up physical shops are still stranded. He needs to rise and work on delivery infrastructures such as purchasing delivery vehicles, ships and airborne cruises. He should always be trendy and informed to direct strategies which will result in a profitable growth. He was once found off guard by losses due to inactiveness in the business. He should always be on track concerning the business performance. Just in case of operation itches he should oversee remedial actions as it is required and therefore inform the co-director to uphold the directive to realize company’s goals.

As the head of the company, he should long-term strategic plans concerning the firm’s objectives and priority timeline for the next ten years. A written roadmap will aid in decision making to realize the company’s dreams. Sometimes the business was almost stumbling due to lack of comprehending operational objectives. The managing director is supposed to ensure all staffs understand the business goals and standards of performance (Merson, 2004, p. 6). Mr. Nick never realized that it was his responsibility to make several business trips meeting his significant clients. The online customers never knew him thus being curious about the surety of whether the goods may be delivered if at all they purchase them through digitals means. Physical meeting with established business clients increases their confidence. Sometimes AsSeenOnScreen Company operations were barely smooth. He failed to oversee the booming online client growing thus fashion stock being depleted without possible restocking mechanisms. It was oblivious that consumers were frustrated due to unavailability of their brands. He was supposed to maintain operational performance. As the founder of the enterprise, he was supposed to have a parental figure by supporting functional managerial team, the board directors seemed to be disorganized and everyone acting and setting policies in a shambolic manner.

Quentin Griffiths was a co-director managing sales and marketing field. Being responsible for setting up appropriate marketing materials he failed to introduce varied elements. Magazines were hardly enough to attract clients. He was supposed to organize cocktail parties with esteemed consumers and all interested parties. Such events upgrade customers’ affinity toward business. Roadshow promotions were never involved. He ought to sponsor roadshow to meet customers, in the meantime, promotional items should be available to promote client based on specific questions about the company, or even other stage managed activities such as dancing, singing and acting as per various celebrities featured in the cloth line. He was orders delivery custodian but his failure of be focused sometime disrupted the business operation due to poor turnovers (Williams, 2007, p. 8).

Some clients were afraid of being conned. As a sales and marketing director, he was supposed to make sure that he has the best workforce, monitoring sales activities and orders dispense. He is supposed to work closely with accounting and cargo department to ensure that there is quick credit check and orders are prepared as soon as they are placed online. Immediate preparation of orders reduces time wastage as well as sending the ordered items early enough to reach the clients. Hasty dispense of orders satisfy customers thus strengthening firms reputation, and as a result, commendable and consistent profits would have been accumulated.

Thorpe was a commercial director who was primarily dictated by the area of expertise. Being mandated to identify profitable commercials about online clothing enterprise, failed to do so and instead introduced boring and meaningless episodes in the television. He was supposed to pinpoint and prepare the best episodes targeting the trendy and dynamic young generation (Vansina & Cobbaert, 2008, p.256). Regular sales breakdown meant that there was an economic problem. Regular’ reviews were never carried out. He was supposed to coordinate with clients to ensure that their needs are being met, excellent customer service to streamline a roadmap for real clients’ relationships. Market research was his responsibility to realize business plans. Unfortunately, he thought online errand were monopolized. Several people had been trying to improve on the same kind of business and failure of being responsibly focused lowered company’s turnovers. He was required to be informed about the available gaps in the market which could be used to set physical shops.

References

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Molenaar, C., 2016. Why Customers Would Rather Have a Smartphone Than a Car: Relationship Retailing as an Opportunity. Routledge.

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