Assignment on Digital Business Management
Added on 2021-06-22
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Assignment onDigital Business Management1
Identify the E-business model that the website pursues and considerE-business concepts and approaches to comment on specificstrengths and weaknesses of the nestle website.Identification of the E-business model that nestle.co.uk pursues (slide 2 and 3)Brokerage Model: Nestle UK uses a brokerage model. The brokerage model is a Webmarketing strategy. At the core of this model are so-called brokers who put goods and servicevendors and purchasers in partnership to conduct transactions (Chaffey, 2019). Model for ads: This website offers contents and resources of nestle (such as e-mail, blogs, etc.)combined with advertisements in form of advertisements.Merchant Model: Commodities suppliers and distributors. Purchases may be produced at or byauction depending on premium rates.Affiliate Model: A platform that delivers chances to shop anywhere citizens search for nestle.Utility Model: Nestle intends or "on-demand" is focused on the use of a device or on "payingwhen you go" Contrary to subscription programs, metrics are based on existing rates of use.Subscription Model: Users of nestle are paid a recurring fee for subscribing to the service –regularly, weekly or yearly. Models of advertisement and payment are also mixed (K., 2019).Consideration of E-business concepts and approaches to comment on specificstrengths and weaknesses of nestle.co.uk (slide 4)The fast expansion of e-business has recently been helped by Internet distribution. Nestle mustincorporate their internal computer systems with external Internet networks to satisfy customerneeds and connect with others. This list contains advantages over competitors’ websites thatwould give the website a competitive edge and help to get the business objectives more quickly(Turban, 2015). Website strengths are related to the main goals and objectives of the website’screation. Here are some examples of nestle website strengths:Customer-centric design and messagingEffective calls to action2
Useful and relevant contentIntuitive navigation and searchThe quick and easy checkout processResponsive design with full mobile supportWeaknesses are simply characteristics of a website that put you at a disadvantage or that canprevent you from reaching your business objectives. If a characteristic is outdated or isinadequate for its function, it can be considered a weakness. Here are some examples of nestlewebsite weaknesses:Outdated or ineffective designIneffective or concealed calls to actionContent that is not customer-centricConfusing structure and navigationThe cumbersome and lengthy checkout processLack of mobile supportIdentify a competitive strategy and digital business strategy thecompany has followed and provide recommendations with clearjustifications Competitive strategy (slide 5)Here Michael Porter’s competitive forces model is used to identify the competitive businessstrategy nestle has followed.Traditional competitors: In the food industry, Nestlé is a powerhouse. They spend hundreds ofmillions to make them look more attractive. Companies continue to aspire to be competitive, butcustomers will only prefer goods that are always better (Chaffey, 2019).The threat of New Entrants: A part of Nestlé's Demand should be grabbed by new entrants.Nestlé was able to gain significant market share thanks to its long experience, productconsistency, and customer loyalty.3
Bargaining Power of Supplier: Also, Nestlé has a large buying power. The organization prefersto maintain long-term relationships with its vendors that guarantee product consistency.Bargaining Power of Buyers: Nestlé acknowledges consumers' influence and takes concretesteps to satisfy their specifications. Business is better aware of the health – Nestlé combineshealth and well-being.The Threat of Substitute Products: The threat of replacement products surrounds Nestlé. Itemsidentical to Nestlé directly. To keep its products competitive, Nestlé focused on health and well-being (Burkitt, 2014).Nestlé’s value chain (slide 5)Value chain analysis of nestle is used for understanding the competitive strategy. Figure: Nestlé’s value chain4
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