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Asos SWOT & PESTLE Analysis

ID : 52659453| Sep 2020| 15 pages


Business Sector :Fashion products and retail

Operating Geography :Europe, U.S. Australia

About Asos :

ASOS plc. is a U.K. based online-only fashion retailer. ASOS stands for AsSeenOnScreen. The company was founded in the year 2000, and in a span of 20 years it has become the largest online retailer in the U.K. The retailer sells brands from the biggest high-street brands across the world, as well as its own line of clothing ranging in all types of products.
As the modus operandi of the company is online only, it is highly dependent on its distribution system, which boasts a one-day delivery. It is currently operating and expanding in the Europe, U.S. and Australia regions. ASOS serves mainly those customers who are aged between 16 to 34 – the company names them as 20-somethings – and are internet-savvy has created a strong customer, base greater than 20 million, for the company. The company boasts to be authentic, brave and creative to its core, with all 4000+ of its employees (as of January 2020) putting themselves in their customers’ shoes and then coming up with creative solutions which would enthrall them.
Driven by its core values i.e. Authentic, Brave, Creative- ASOS' unique proposition for customers, focuses on designing and curating the most relevant fashion, face, and body products for every fashion loving 20-something and amuse them with delivering compelling, friction-free digital experiences.
Exclusive product range, brand choices, and consistent innovation continue to differentiate ASOS’ from its competition thus presenting a competitive advantage to the company.
ASOS' USP or Unique Selling Proposition sprawls in being UK's largest independent online and fashion beauty retailer and one of the world's leading brands in the lifestyle and retail sector, as of 2020.
ASOS’s mission statement is “To become the number one destination for fashion loving 20-somethings.” ASOS’s vision statement is “To empower 20-somethings to look, feel and be their best so they can achieve amazing things.”

Asos Revenue :

£ 2,733.5 million – FY ending 31st August 2019(y-o-y growth of +13%)
£ 2,417.3 million – FY ending 31st August 2018

Competitive Analysis of Asos

ASOS is a one-stop fashion destination that offers more than 85,000 products from its own collections and other leading brands, that can be bought from anywhere in the world. To encompass every corner of the world, ASOS has stepped up the pace of transforming their digital and logistics abilities. ASOS' official website and apps are more localized and personalized with shopping made accessible in 12 linguistics and 19 currencies.
Thus, the SWOT tool helps to benchmark ASOS' business and performance along with identifying its competitive stance in the industry. The SWOT report depicts all micro and macro factors and influencers that have a tremendous impact on ASOS' business model, business, and marketing strategies. The SWOT analysis manifests a discussion on all the pertinent factors specifically the strengths, weaknesses, opportunities, and threats that predominate ASOS' internal and external environment respectively.
Operations in more than 200 countries, strong international supply chain, innovative marketing strategies, strong connect with 20-something on social media platforms, availability of 30+ sizes at same prices, gender-neutral collection, positive brand image, a proud partner with GLAAD (one of the biggest voices in LGBTQ activism), focus on fashion with integrity, etc. are some of the biggest strengths of ASOS.
ASOS free shipping strategy is a key feature that allows the company to reach every corner of the world. However, it is also a weakness of the company as the free shipping strategy can hit the margins and increases overhead expenses when products are returned.
Steadily changing fashion trends, wavering buyer preferences, improving incomes, choice of better lifestyles, and advancements in technology formulate huge growth opportunities for ASOS. In order to embrace these opportunities and enhance its business operations, ASOS can expand its product portfolio, add more variety to its product line and invest in technical innovations. Being in a highly competitive industry, ASOS encounters competition threats from top retail players in both online and offline segments who have better brand recognition than that of ASOS.
The SWOT analysis for ASOS is presented below in a matrix followed by detailed analysis:
1. Strong performance across all market segments
2. Focused on delivering best-in-class customer experience
3. Robust supply chain and logistics management
4. Strong customer loyalty in U.K.
5. Authentically and ethically sourced products
1. High non-strategic costs
1. Scalability of platform across markets
2. Technological investments to improve customer experience
3. Opportunities in shop-able social media posts
1. Geopolitical uncertainty due to Brexit
2. Shift in e-commerce market dynamics
3. Cyber threat and data security
4. Impact of foreign exchange fluctuations
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Detailed SWOT Analysis of Asos



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1. Scalability of platform across markets: An extensive social media research by ASOS revealed that its consumer (a 20-something) wants a diverse set of styles in products, produced with ethically and sustainably sourced raw material, which can create magic moments at social events. The 20-something of the day also wants a produce which reflects the real world where he lives. Currently the company offers 85,000 products, and with 5,000 new styles launching every week on its platform offers a plethora of choice. The company has a great opportunity to acquire customers as it wants to become the single largest online platform for fashion retail. It can achieve economies of scale by offering more competitive prices. In other words, to achieve existing customer retention and new customer acquisition, the company can use its online-only platform which is easily scalable as compared to a brick-and-mortar store model.

2. Technological investments to improve customer experience: ASOS always perseveres to make shopping more intuitive and personalized for the customer. In order to further improve the customer’s digital experience, the company has employed advanced recommendation algorithms which can make better suggestions to the customer based on his/her shopping experience. The company has built its proprietary features like Style Profile Builder, Back in Stock, delivery status push notifications and Fit Assistant recommendations. Apart from the digital experience, the company has also worked to improve the operational experience for the consumer. The company has always been famous for its rapid delivery and hassle-free returns, and is still pursuing further improvements in these areas. The company has invested heavily to make its global infrastructure network even stronger. For example, the fulfillment center in Atlanta, US has been doubled by facility space and automation of the Euro Hub site has been doubled. The Euro Hub site has increased its storage and throughput capacities by more than 60 per cent. These investments made by ASOS can become game changers for the company.

3. Opportunities in shop-able social media posts: Shop-able social media posts are those posts on social media platforms which are presented as part of the user’s content, but can be clicked to make a purchase on the social media platform itself. This is a recent innovation done by the social media platforms and features like Instagram’s “Shop Now” button, Twitter’s product pages and Facebook’s “Buy” button are gaining huge popularity. The main reason cited for this trend is the constant presence of consumers on these platforms along with reluctance to leave social media and switch to e-commerce platforms.
Instagram is the platform where ASOS is most popular among its customers. As of April 2020, the company has 10.2 million followers with more than 10,600 posts on Instagram. Therefore, there is a huge opportunity for ASOS to sell its products while engaging with its customers. However, according to ASOS, shop-able posts on social media are a double-edged sword because they could disrupt the existing business model of the company. Hence, if the company goes for it, shop-able media posts will have to be rolled out after careful cost-benefit analysis of the opportunity and consequences.


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SWOT & PESTLE (combined)
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Check Out Analysis of Other Relevant Companies


1. Employing strategic tools, SWOT and PESTLE, to study the major internal and external factors affecting ASOS
2. The SWOT report covers a comprehensive analysis of ASOS internal strategic factors like Strengths and Weaknesses, external strategic factors like Opportunities and Threats
3. Mark strategic initiatives that were taken by ASOS to stay ahead of its peers and competitors and attain a competitive advantage
4. The PESTLE analysis of the fashion industry, highlighting the factors that encourage and restrict the global fashion market.
5. Application of the PESTLE/ PESTEL/ STEEPL Analysis for in-depth analysis of all external factors namely, political, economic, social, technological, legal and environmental and highlighting their consequence on the operation of ASOS
6. Penetrations into ASOS’ business diversification, eliciting its key business segments and highlighting its major competitors
7. A comprehensive company analysis to gain insight about company information, company profile, business model, business plans and marketing strategy
8. A concise overview of ASOS business goals or synergies that were achieved via mergers and acquisitions, strategic partnerships and alliances
9. Review of ASOS’ USP or unique selling proposition, mission statement, and vision statement
10. Summary of ASOS’ business model, in addition to analysis of key business segments and business case study
11. A peek into the ASOS' key performance indicators, success factors, value proposition, and core competencies
References used in Asos Analysis Report

1. ASOS 2019 revenue -

2. ASOS annual report 2018 -

3. ASOS company profile -

4. How will Brexit impact the UK fashion industry -

The detailed complete set of references are available on request in the 'Complete report' on purchase.

How to Reference This Page?

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SWOT & (2021). Asos SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 08 Mar, 2021].

In-text: (SWOT &, 2021)

Copyrights and Disclaimer

Asos SWOT and PESTLE analysis has been conducted by Divyansh Kharadkarand reviewed by senior analysts from Barakaat Consulting.

Copyright of Asos SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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