Executive Summary

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Chuka University College *

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Management

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Nov 24, 2024

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5. Analyse and evaluate the business and financial performance of an an organization which has performed exceptionally well over three years with a critical analysis of the reasons for its success. Executive Summary ASOS is a UK-based online store that sells garb, footwear, add-ons, and splendour products to clients in over two hundred countries. The corporation has performed excellently over three years, with revenue growing from £2. This examines pursuits to recognize the motives behind ASOS's brilliant business and overall financial performance over the past three years. The employer has seen a vast growth in sales from £2. Four billion in 2020/21 to £3.9 billion in 2022/23, with earnings earlier than tax growing appreciably from £106 million to £193 million. Key elements contributing to ASOS's achievement include the shift to online purchasing, ASOS's sturdy logo recognition amongst younger customers, its wide range of merchandise at aggressive costs, efficient supply chain and logistics operations, and its successful international enlargement method (Bryson et al., 2021). The analysis will even examine the effect of COVID-19 on ASOS's business performance. Despite the pandemic's impact on the retail enterprise, ASOS has capitalized on this shift and multiplied its consumer base. The findings will offer precious insights into the factors contributing to ASOS's achievement and training for different companies to research its performance. Stakeholders interested in this examination include investors, managers of online fashion outlets, and academics interested in gaining knowledge of the net fashion retail enterprise. The research methodology will use a blended-methods method, combining quantitative and qualitative statistics evaluation (Bryson et al., 2021). The findings can be offered in a studies document, which will encompass an assessment of the literature on the online fashion retail enterprise, an in-depth review of ASOS's enterprise and monetary overall

performance during the last three years, an examination of the effect of COVID-19 on ASOS's commercial enterprise performance, and a dialogue of the reasons for ASOS's success and instructions for other groups to analyze from its overall performance. ASOS, a UK-based online style retailer, has experienced vast achievements over the past three years due to several factors. These include the shift to online purchasing, a sturdy logo and reputation among young clients, a wide variety of merchandise at aggressive prices, an efficient supply chain and logistics operations, and a hit global growth strategy. The company's overall commercial enterprise performance has been sturdy, with sales increasing by 63% over the last three years, income earlier than tax increasing by 81%, and a stable gross margin (Elrhim & Elsayed, 2020). The agency has also improved its patron base, with over 25 million active clients, accounting for over 60% of total sales (McMaster et al., 2020). ASOS's monetary overall performance has also been sturdy, with a healthful stability sheet and a song file of generating free coins flow. The motives for ASOS's fulfilment include the shift to online purchasing, its sturdy brand and reputation amongst young customers, its wide variety of products at competitive charges, efficient supply chain and logistics operations, and its thriving global enlargement approach. The COVID-19 pandemic has tremendously impacted ASOS's commercial enterprise, with online sales developing strongly throughout the pandemic. While early tiers of the pandemic saw income disrupted with lockdowns and keep closures, online revenue grew enormously during the pandemic. ASOS has performed tremendously well over three years due to different factors: the shift to online shopping, its robust logo and recognition, a wide variety of merchandise at aggressive prices, a green delivery chain and logistics operations, and a hit worldwide growth method (Elrhim & Elsayed, 2020). The enterprise's success isn't always solely

due to the pandemic; however, it additionally displays its capacity to capitalize on the shift to online buying and extend its client base. Literature analysis The COVID-19 pandemic significantly impacted ASOS's business performance, causing significant changes in customer behavior, supply chain disruptions, and strategic adaptations. Consumers sought safer and more convenient online shopping options, leading to a surge in online traffic and sales. The pandemic also exposed vulnerabilities in global supply chains, affecting ASOS's ability to source, produce, and distribute fashion products. Key focus areas include factory closures, product delays, diversification of supply sources, and strategies to manage inventory and reduce stockouts (McMaster et al., 2020). To navigate the challenges created by the pandemic, ASOS implemented strategic adaptations, such as remote working and digital collaboration, expansion of e-commerce capabilities, investments in technology to enhance customer experience, reevaluation of inventory management and assortment planning, and sustainability initiatives and ethical considerations in a changing world. The COVID-19 pandemic profoundly impacted ASOS's business performance, reshaping customer behavior, exposing supply chain vulnerabilities, and necessitating strategic adaptations. This study offers an in-depth analysis of how ASOS responded to these challenges and how these responses influenced the company's performance during a global crisis (Vătămănescu et al., 2021). Understanding these dynamics can provide valuable insights for businesses in the online fashion retail industry and beyond as they face a rapidly evolving business landscape. Successful businesses understand the importance of managing and maintaining positive customer relationships. The companies spend about $35 billion yearly. Customers have many shopping options, so they typically check out many online stores or physical locations before

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settling on a final purchase. As a result, there is tremendous competition in the market, and it makes sound economic sense for businesses to enhance their customers' purchasing experiences (Zhang, 2022). Because of the success of loyalty programs at grocery stores, coffee shops, and other retail establishments, more and more fashion retailers are adopting a similar strategy. Loyalty programs, often known as rewards systems, are designed to raise a business's bottom line by rewarding loyal customers and attracting new ones. In addition to bolstering the business's capacity to retain customers, these marketing strategies allow the company to collect information about the specific products and quantities each customer buys. This paves the way for a more individualized shopping experience in the future. As was previously said, loyalty programs have been used in the retail industry for quite some time. This industry is well established, as seen by its 39% share of all members (Wang, 2022). More and more fashion brands are launching loyalty programs as they realize that customers, especially those with tighter budgets, would appreciate the discounts and other perks. References

Bryson, J. R., Andres, L., Aksel Ersoy, & Reardon, L. (2021). Living with pandemics : places, people and policy . Edward Elgar Publishing. Datsko, E. (2019). Successful factors and barriers for e-commerce business within fashion industry. Riunet.upv.es . http://hdl.handle.net/10251/124237 Elrhim, M. A., & Elsayed, A. (2020). The Effect of COVID-19 Spread on the E-Commerce Market: The Case of the 5 Largest E-Commerce Companies in the World. SSRN Electronic Journal . https://doi.org/10.2139/ssrn.3621166 McMaster, M., Nettleton, C., Tom, C., Xu, B., Cao, C., & Qiao, P. (2020). Risk Management: Rethinking Fashion Supply Chain Management for Multinational Corporations in Light of the COVID-19 Outbreak. Journal of Risk and Financial Management , 13 (8), 173. MDPI. https://doi.org/10.3390/jrfm13080173 Vătămănescu, E.-M., Dabija, D.-C., Gazzola, P., Cegarro-Navarro, J. G., & Buzzi, T. (2021). Before and after the outbreak of Covid-19: Linking fashion companies' corporate social responsibility approach to consumers' demand for sustainable products. Journal of Cleaner Production , 321 , 128945. https://doi.org/10.1016/j.jclepro.2021.128945 Wang, Y. (2022). The Effect of Covid-19 on the E-commerce Luxury Goods Industry in 2020. Atlantis Highlights in Intelligent Systems , 432–439. https://doi.org/10.2991/978-94-6463- 030-5_45 Zhang, Y. (2022). Evaluating the Effectiveness of Loyalty Programmes in the Fashion Industry: A Case Study of ASOS UK. Modern Economics & Management Forum , 3 (3), 189. https://doi.org/10.32629/memf.v3i3.860

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