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Assignment on Digital Business Activities

   

Added on  2020-10-05

11 Pages3286 Words375 Views
DIGITAL BUSINESS

Table of ContentsINTRODUCTION...........................................................................................................................3Business description...............................................................................................................3Traditional business v/s digital business................................................................................3Digital business activities................................................................................................................5Mode of operation .................................................................................................................5Digital business environment.................................................................................................6Market place...........................................................................................................................6Market growth........................................................................................................................8Market segmentation..............................................................................................................8Growth factors for digital businesses.....................................................................................8External forces........................................................................................................................9CONCLUSION..............................................................................................................................10REFRENCES ................................................................................................................................11

INTRODUCTIONDigital business is the creation of latest business designs and uses the technology to buildnew value in business model, customer experiences and the internal capabilities which creates itscore operations. In present business world the people are spending huge money on online andshifted the business emphasis to digital sources of revenue and digital channel. It involves boththat is digital brands and traditional brand who are working on transforming their businessesdigitally. Business descriptionThe organisation undertaken in this report is E bay which was founded in 1995 and dealsin internet and e- commerce industry (Chaffey, 2015). It serves various products and serviceswhich are digitally enabled like online shopping with the help of its online applications, etc. Thiscompany operates all over the world by covering almost every part in global businessenvironment and approximately employs 180000 people. Its official website is www.ebay.com.Traditional business v/s digital business.A traditional business is operated to provide its customers with a product in exchange forcompensation. This form of business is generally operated in a local store or shop that offers itsproducts and offerings to its customers and in this, the customers will have to visit the storephysically in order to purchase the products (Darics, 2015). Furthermore, their promotionalstrategies will be like business cards for the brands, designing brochures for the products,modifying the interior and infrastructure, pamphlets, banners, posters, etc. Digital business are those which uses technology for its internal and external operations.Earlier digital business started with selling but now it has expanded the operations whichincludes activities more than selling (Fleisch, Weinberger and Wortmann, 2015). The growth ofthis industry have made people familiar with the digital products and services which has drivencompany into new competitive advantage. The promotional strategies used by the digitalbusinesses will be social media like Facebook, Instagram, twitter, etc. Apart from this they willalso use digital hoardings for promoting their products to the customers. Difference between digital business and traditional businessesBasisDigital business Traditional businessesShipping and logistics These businesses face ongoingAt the same time, the

challenges related to gettingproducts in the hands ofcustomersquickly.Competition from big boxretailers like ebay means it’sno longer enough to get anitem to customers in five daysto a week. Apart from this,also deal with the logistics ofreturns, as customers purchasemultiple items to try them out,then return them, forcing youto issue refunds and put itemsback into inventory.traditional business also facesthe challenge of getting theproducts which the companywants to sell in their stores.They feel burden to sell theiritems online but in store alsothey will have to handle thevarious issues like shop liftingand damage of products ascustomers are concerned withbusinesses who visit the storeon regular basis.Promotional strategies It includes web sites, socialnetworking sites, contentmarketing, banner and googleads, etc.It includes print and broadcastmedia, direct mail andtelemarketing, etc.Digital business modelThis can be understood by applying the SWOT analyses of E bay as it helps inidentifying the internal strength and weaknesses and external opportunities and threats (Hollimanand Rowley, 2014). Strength Market leadership all over the world.Experience in extensive utilisation ofthe first mover advantage.Strong brand portfolio and image in themarket as E bay is one of the largestdigital business. Weakness Weak competitive position.Hampered the brand image in UK dueto tax avoidance scandal.Due to extensive delivery network andprice wars E bay margins are shrinking,which is resulting in even losses.OpportunitiesThreat

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