The Internet and Business, a Comparison of Asos and Topshop

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Table of Content 1

1.0 Introduction and Executive Summary 2

2.0 Company Analysis 3
2.1 Porter's Five Forces 3

3.0 Sector Analysis 6

4.0 Business Model 7

5.0 Website Evaluation 8

6.0 Conclusion and Recommendations 10

7.0 References 11

8.0 Appendix 13

1.0 Introduction and Executive Summary

This report is concerned with the evaluation of two online fashion store websites; Asos and Topshop. While Asos exists exclusively online, Topshop's website is an expansion of the high street business. They both have a similar target audience, and the same aim of providing customers with fashionable clothes they want. However, do the strengths of both companies lie in different aspects.
With the increasing importance of online activity such as marketing and sales, it is imperative for businesses to have an online presence. Some do exclusively operate on the net, while others use the technology as an expansion into the reach of the world. Both businesses are evaluated with Porter's model of the Five Competitive Forces, which determine the strengths and weaknesses of a business and the sector's competitiveness is analysed with the diamond framework. Both companies are identified as strong players within the industry which is strongly competitive. Asos and Topshop both operate in business to customer relations, while Topshop's competitive strategy is differentiated, Asos combines the cost leader strategy with some differentiation.
The web design of both companies is analysed throughout the factors of the trade cycle. Overall the two websites are built customer-friendly, in terms of ease of use through all stages and aesthetically.
2.0 Company Analysis

According to Mintel, online sales for fashion have increased by 461% from 2002 until 2007 (2007). In 2010, online sales in the UK apparel market had grown to £4.27bio, even though growth has been slowing down...