Value Chain Analysis Example: ASOS
This is part of an analysis on ASOS which includes other framework such as SWOT and PESTEL. Shown here is the value chain section of the ASOS report.
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ASOS is a hugely popular e-commerce so finding out its value chain is not as difficult. However, it is crucial to find out the competitive advantage of the company using the value chain. Shown here are the three most important activities in ASOS’ value chain.
Developed by Porter (2001), the value chain analysis seeks to determine the group of activities that the company engaged in to provide customers with value. The analysis below specifically looked at how ASOS add value to its offerings through service, outbound logistics and marketing and sales.
One of ASOS value-added activities is its attentive service. It provides support anytime and every day through several contact points including phone, social media, email and live chat. In addition, it also provides detailed information pages on numerous topics such as technical and ordering issues which allow customers to self-help (ASOS, n.d.b).
In addition, it offers generous returns and refunds terms such as free returns within 28 days through mail, or at convenient locations such as supermarkets and petrol stations (ASOS, n.d.c).
1.2 Outbound Logistics
ASOS’s central warehouse in Barnsley is constantly upgraded to ensure that it can dispatch items quicker (ASOS Plc., 2017). This includes doubling its capacity and the installation of new technologies such that the process can be automated and therefore much more efficient. This allows ASOS to provide services such as next-day delivery and even same-day delivery through its ASOS Instant service (ASOS Plc., 2017).
1.3 Marketing and Sales
ASOS has been marketing itself as a supporter of diversity. In figure 4 above, its homepage displays a banner which features models from both genders, diversed races and even different sizes.
In addition, ASOS also publishes its own hard-copy magazine named ASOS that showcases products found in ASOS and fashion looks. It uses it to market to customers through a different channel that is otherwise untapped. More than this, it also uses it to enhance its brand image. This includes that of empowering positive body image such that it increases its appeal to customers of different sizes (ASOS Plc, n.d.).
Moreover, to appeal to its target market of “20-somethings” who are often looking for bargains, it frequently holds sales promotions and even has a category named “Outlet”, which offers items at deep discounts (ASOS, n.d.a).