Strategic growth in the fashion retail industry
An asos.com case study

Page 1: Introduction

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asos.com is the UK”s leading online fashion store for women and men. Launched in 2000, the online retailer targets fashion conscious 16-34 year olds. On asos.com there are 9,000 products available at any one time, with 450 new fashion items added every week. These include women”s fashion, menswear, accessories, jewellery and beauty products. asos.com attracts 3.3 million unique...
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Page 2: Ownership and management structure

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asos.com is a public limited company (plc). This means that the business is owned by shareholders and that its shares can be purchased by the general public. asos.com shares are traded on the Alternative Investment Market (AIM), which is part of the London Stock Exchange. Joining AIM has several advantages for a growing company such as asos.com. AIM-listed companies do not need to comply with...
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Page 3: Growth

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Most companies seek to grow. They want to increase profits for their shareholders. They also want to increase the overall volume of business because this can lead to significant reductions in costs. These are known as economies of scale. For example, as asos.com grows, it will require a larger warehouse and distribution operation. As it handles more sales transactions, it will find it easier to...
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Page 4: Improving the business

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asos.com's strategy of organic growth has shown substantial results. It has managed to satisfy increased demand. The company has also increased its market share. asos.com has recognised that the conditions were right for an online retail business in the fashion retail sector.  The company has used the Internet as the primary growth tool. It has tapped into the rapidly expanding online...
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Page 5: Communication to support growth

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The structure of a business organisation usually alters as it grows. When a company is very small, a manager tends to take on most managerial functions. As a company grows, it often introduces new layers of management and organises itself into specialist departments. As it has expanded, asos.com has developed a more hierarchical organisational structure, with individual departments responsible for...
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Page 6: Conclusion

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asos.com has achieved a remarkable growth since it first began trading in 2000. Following the dot.com bubble of the late 1990s, many people doubted the potential of Internet-based retail businesses. It has taken careful planning to ensure that asos.com meets customer needs. The business has grown organically. It has expanded its market share, taken on more staff, and grown sales and profits...
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