Asos Analysis

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TASK 2: Brazil: Potential New Market

Expansion with the market of Brazil is an integral element of the strategy being focused by ASOS for truly being international retailer. Brazil maintains stability in the environment of politics, with one of the biggest democracies across the globe (Demers 2014). As per the projections of World Bank, it has been suggested that Brazil will come out to the fifth largest economy across the globe by the year 2016. In addition to this, the organization of ASOS should be focused on examining the market of India in a significant manner for entering in a successful manner. This step is important as the market of Brazil and India have been undertaking the market of UK for becoming the sixth and seventh largest economy across the globe since the last few months, in order to draw the eyes in marketers of Britain to the ones of Latin America (Alharr 2010). With such rapid expansion in the middle class of the societies by 90 and 80 per cent, it is an opportunity that should not be ignored for expansion. This social and demographic shift in India and Brazil is a great opportunity for the organization of ASOS as there have been trends in distributing the wealth (Accenture 2011). These nations have also been identified as the youngest nations with large population aged eighteen or below, to give ASOS a significant platform for targeting the new base of market.

2.1 PESTLE Analysis

Political Environment

There is stability in the political environment of Brazil, holding the position as one of the biggest democracies across the globe (Doh 2000). The political environment is governed by coordinated, independent and strong institutions.

Economic Environment

The economy of Brazil has been expanding at a steady rate since a number of years due to stability in the political and the social environment. As stated above, it has been suggested that Brazil will come out to the fifth largest economy across the globe by the year 2016 (Edelmon 2012). The Olympic Games to be conducted in Rio will result in placing Brazil at the lime light across the globe that will help the economy for reinforcing itself as a growing and major economy having unique destinations for the visitors. The credit being available contributes in boosting the growth within the sector of retail across the nation. The consumers of Brazil are more exposed towards utilizing credit in comparison with other consumers amongst the low income category and emerging market (Hargreaves 2014). However, there are high taxes on import that has resulted in creating barriers for other brands showing willingness to launch in the market of Brazil. The two key sources of tax include the amount of tax over goods and services being distributed called ICMS and import duty. In consideration with the currency of Brazil, the returns on investment are influenced by trends within the amount of pounds. The treasury department of ASOS holds the responsibility for the reduction of exposure to other risks in finance (Helepete 2011). This is important for ensuring that there is availability of sufficient liquidity for meeting the foreseeable needs and for investing each and every single asset in a safe manner for the generation of profits.

Social Environment

The yearly growth in the population of Brazil has been forecasted to be reduced by the year 2020, but the large population of youth will be ensuring there is growth in the market of consumer and labour within the medium level (Gilber 2004). Because of the shifts in the socio- demography in the market of Brazil, there have been a number of changes within the distribution of wealth and a large number of population have been coming out of poverty since the year 2003 (Deloitte 2011). This is due to the launch of welfare schemes by the government (Kotler 2008). This has resulted in the creation of new middle class in the society that have been a major source for driving the economy. This represents 60 per cent of the society since the year 2014.

Technological Environment

There is availability of large number of population accessing the online platform and this population is growing at a continuous rate. With advancement in the technology, it is important for analyzing the market of Brazil for bringing the business operations of ASOS in alliance with these considerations (Laundon 2011). The nation has been ranked at number of five across the globe with respect to digital users. Because of this large market of youth, this results in creating enthusiastic utilization of social media.

Legal Environment

There are certain restrictions and barriers in consideration with the laws of advertisement in Brazil (Lee 2006). When product is being shipped in Brazil, and to return to the hub of America, there are certain lawful considerations along with taxes on export and import.

Environmental Factors

The global expansion of ASOS will be having a major impact over the environment; however, they seem to be having a policy of environment for continuously improving their performance in the environment (Lincoln 2013).

TASK 3: India: Potential New Market

The retail sector of India has been experiencing growth at a tremendous pace with the changes in the demographic condition and improving the quality of life style of the urban population (Logue 2011). The growth in the affluence of the consumer class in India, new breed emerging amongst the retail entrepreneurs and a large range of imported products within the space of fashion has been driving the current boom of retail within the domestic market.

3.1 PESTLE Analysis of India

Political Environment

India is one of the largest industries of online retail across the globe. The type of government is federal republic (Financial Express 2013). There are several events causing fluctuation in the stability of the political environment. Majority of the history of democracy, it is known to be led by the national Congress of India. The politics of the state is being dominated by a number of national parties that include the INC (Marinelli 2012). Privatization contributes in reducing the interface of politics within the managerial operations of the enterprises, resulting towards the improvement of productivity and efficiency.

Economic Environment

The factor of the economy