Advantages, Trends, and Challenges of Managing Virtual Business

This report discusses the advantages, key trends, and challenges of managing virtual business in the global environment. It explores the significance and impact of virtual business on the global market. The report also includes a SWOT analysis of Brichbox, a case study on emerging digital business models, and the importance of collaborative relationships and strategic alliances in implementing personalization.

DIGITAL
BUSINESSES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1. Discuss the advantages, key trends, disadvantages managing virtual business in the
global environment, significance and their impact.................................................................1
LO2. SWOT Analysis on Brichbox........................................................................................3
Porter's five forces..................................................................................................................4
LO3.Critically evaluate emerging digital business models and challenges associated with
information security threats and ethics in general. Perform a critical analysis with respect to
the case study scenario...........................................................................................................5
LO4.Critically evaluate the importance of new collaborative relationships and strategic
alliances through digital technology for implementing personalisation.................................6
LO5.Compare and contrast digital business and e-commerce. What are the E-Commerce
principles and discuss how they could be applied to digital businesses?...............................7
CONCLUSION..............................................................................................................................10
References:.....................................................................................................................................11

INTRODUCTION
Digital business create design new business by fading the physical and digital world. In
this business they use various techniques and new technology to add on new value in businesses
framework, internal abilities and experience of customers that assist its set operations. The below
report is based on Brichbox, this company based on make-up brand, founded in 2010, in new
york city, U.S. They provide monthly online subscription services, company send a box of four
or six sample products of make-up or beauty products to its subscribers. They have various
products such as; cosmetics, perfumes, skin care products, organic products and many more
(Balocco and et,2019). The below report include; about virtual business, their advantages,
disadvantages, impact, trends and significance on global environment bye using virtual
businesses concept. Analyse the strength, weakness, opportunity and threat in organisation and
also discussion about emerging business model or associated challenges with information
security ethics and threat. Importance of strategic bond and new collaborative relationship with
the help of digital technology for individualise improvement. Comparison of e- commerce and
digital business, e- commerce principles and how they affect digital business (Bouncken, Kraus
and Roig-Tierno, 2019).
.
MAIN BODY
LO1. Discuss the advantages, key trends, disadvantages managing virtual business in the global
environment, significance and their impact
Virtual business refers to the conduct any business activities through internet. It not have
physical presence employees such as an workplace and employees no need to visit any physical
location. This business focus on digital abilities, measure the physical presence but they cannot
do any physical work through digitally (Cowan and Ketron, S., 2019).
Key trends: This refers to the making market clear, continuous move downward and
upward it means trends and key trends means identifying the starting and trends' end is key part
in market. The key trends include Artificial intelligence, Internet on things, block-chains,
Argument reality, experience of users, Drones and voice search. In Brichbox context, these
trends are helps in run business successfully and helps in global business environment also in
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growth of business terms. Reach out customers from different locations (de Mattos, Kissimoto
and Laurindo, 2018).
Advantages: virtual business provide benefits to company such as; improvement in
employees satisfaction, improved their efficiency, improvement in actual growth and scalability,
Access new markets, improvement in employees retention and larger talent pool. These
advantages helps to global environment in right manner such as it helps in increasing country
growth also. Increase brand value in whole market in different cities and customers are satisfied
with brand so it helps in profitability. In Brichbox context, the above advantages points helps in
explore new markets and trends in market at globally.
Significance: In company virtual business provide positive significance to global
environment such as, in economy of country it helps in increasing GDP rate, because Brichbox
cover maximum area for providing their quality services and products. In country their political
factor are stable so it is easy to run business in different locations and reach out customers in
maximum numbers (Delen, Dorokhov, Dorokhova, Dinçer and Yüksel, 2020). In current
scenario customer’s needs and expectations are change regularly. In Brichbox context, they have
various products according to trends in markets, their main focus on customer's satisfactions .
Brand target youth mostly and they cover maximum areas and various digital platforms also, it
helps in increasing sales of business and provide quality services and products to it gives positive
impact on customers.
Impact: Virtual business impact on global environment in positive manner. In Brichbox
context, they produce organic products like skin care, cosmetic and so on, so it is not harm to
environment and it is positive impact on global environment. This business is totally based on
technology, In present days technology grow very fast business adopt new and latest tools and
techniques for effective work and growth of organisation.
Disadvantages: In organisation virtual business give disadvantages also such as;
Reputation-al risks, Need to focus on communication, Lack of sociability, cooperation and
security issues. In Brichbox context, there is also disadvantage of virtual business, such as in
this risk are involve like customer receive defective product or any thing else issue, it give wrong
image to customer.
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LO2. SWOT Analysis on Brichbox
SWOT Analysis observe the strength, weakness, opportunity and threats of organisation
which impact their growth in both aspect positive as well as in negative.
Strength: It refers to the provide benefits to organisation. In Brichbox context, they have
patent business plans and markets in defined form. Company has encouragement for brand and
loyalty building. Company have loyal customers in different cities and they have strong brand
image, it is strength of business (Flyverbom, Deibert and Matten, 2019).
Weakness: It refers to provide disadvantage to company which affect the growth of
business. In Brichbox context, they have sample products in small category and customers can’t
purchase from every where , they only buy products from their application. Language barriers
are affect the most to business.
Opportunities: It refers to provide advantages to company which helps in increasing
their brand value and productivity. In Brichbox context, they cover narrow market segments and
they provide themed based boxes to customers. Company use organic products which are good
for the environment.
Threats: It refers to the drawbacks that affect the growth of business. In Brichbox context,
in market exchange courses are available and lots of competition in market, they increasing
online subscription of beauty industries.
Evaluation
From the above analysis the evaluation of swot on Brichbox, they have great
strength and opportunities to explore new market with different varieties of products, they can
add new category of product such as for children because company use organic material for
making products so it is not harmful for children. Organisation needed to focus on their
weakness for provide quality services and products at everywhere and reduce language barriers
so there is building strong relationship. Brand also reduce threats, company can focus on trends
and needs of customers so they can provide services and product according to users and their
main motive should be make loyal customers in market (Ghezzi and Cavallo, 2020)
.
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Porter's five forces
It is structure of analysis five competitive forces which helps in growth of business and
observe strengths and weakness. It also analyse the strategies in organisation’s framework.
Competition in industry: It refers to the competitors in market of brand. In Brichbox
context, there are various competitors available in market who offer products and services with
less prices and better quality. Other company provide best packaging of boxes, company can
reduce competition in market to providing products and services with minimum prices and
provide customized boxes to customers, this factor attract to them (Kane, 2019).
.Potential of new entrants into the industry: It refers to the company affected by new
entrants into market. In Brichbox context, in market there is many new entrants who affect the
company’s growth and their productivity. New entrants come up with new product with quality
and innovation for this customers easily attract towards the new entrant. To avoid this company
can add new category with best quality and features (Lee, 2019).
Power of suppliers: In this company affected by suppliers in terms of goods and services
. the uniqueness and cost a organisation switch to other suppliers. In brichbox context, the power
of suppliers is high and they have strong relationship with suppliers. Company have good
material for better production and it helps in providing better quality to users.
Power of customers: In Brichbox organisation this force means how much company
have customers in market and loyal users also. Brand cover various locations and they have
customers from different areas so in this industry the power of customers is high because of
quality of services and products. Brand also fulfil customers needs and expectations, they
regularly take feedbacks and surveys through digitally it helps in improvement of services,
increase brand value and reduce competition in market (Kane and et, 2019).
Threat of substitute products: In market there are many substitute products are
available at less or same price and with same quality. Brichbox has lots of substitute products in
market, when close quality and priced product available in market then customers can easily
switch the brands, so reduces this company can improve their product quality and fix prices
according to customer’s needs and through output of feedbacks and surveys.
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LO3.Critically evaluate emerging digital business models and challenges associated with
information security threats and ethics in general. Perform a critical analysis with respect
to the case study scenario
For each and every organisation it is essential to prominently use marketing strategies
which are considered for the suitable achievement of the objectives (Saura, Palos-Sanchez and
Correia, 2019). In regard of this there are several types of emerging digital Business models
which are mentioned as:
Open source model: This model is developed in terms of promoting effective access to
the software by the community developers (Khin and Ho, 2019).
. Currently it is not available at the free of cost as most of the organisations tense to pay
subscription fees considering the open source software (Bouncken, Kraus and Roig-Tierno,
2019). Hence it is undertaken as the most effective and useful digital business model.
 Benefits: by undertaking the prominent use of digital business model it effectively
represents the suitable things for company which are effectively access regarding the
software and its use (Ghezzi and Cavallo, 2020). Moreover, this model is cost effective
for various individuals as it undertakes the effective subscription amount which is
charged as the additional feature.
Drawbacks: this model is not effective for each and every individual as it is to get
suitable intentions considering their uses and also represent that there are several users who leads
to take benefit of open source model (Sousa and Rocha, 2019). Besides this another demerit of
using this model is that it is not compulsory because it worked for every smart device. Hence it
depicts that open source might not be quite user-friendly (Kohli and Melville, 2019).
Free model: it is another emerging digital business model that leads to make effective
use of products by making them easier and after that monetization is done by undertaking the
several individuals who effectively use products and services (Flyverbom, Deibert and Matten,
2019). Therefore, it is quite easy for both company and customers to achieve their objectives. For
instance, Google and Facebook effectively use this model for their functioning.
Benefits: by considering this model company is competent in order to enhance their
reputation and also lead towards the brand awareness at the international level considering the
large number of users (Leban and Voyer, 2018).
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 . Along with this it is useful it is helpful in enhancing the productivity considering the
working efficiency.
 Drawbacks: the demerit of this model is that they can backed by considering the
uncertain events considering the changing behaviour of customers market Trends and so
on.
Challenges concerned with information security threats and ethics:
 Customer virus: It effectively represents the biggest flat considering the information
security as this type of computer program prominently alter the files into their own code
(Kane and et. al., 2019). In relation with Brichbox, they undertake competitive advantage
prominently and put the computer viruses and to the information security system.
 Unauthorised access: By undertaking the Effective rise and use of digital technology
hackers has the competency in terms of taking excess towards the information security
system (Moşteanu, Faccia and Cavaliere, 2020). It effectively depicts the major
challenges which are required by the Brichbox and also require updated information
considering the website and application.
By considering the above discussion it is useful that digital business Tools and techniques
are effective for company as it leads to make prominent things easy in order to reach towards tea
customers (Viriyasitavat and et. al., 2019). Besides this it is easy for them to identify various
threats undertaking the information security which are needed by company regarding operations
of their business with the help of internet.
LO4.Critically evaluate the importance of new collaborative relationships and strategic alliances
through digital technology for implementing personalisation
Due to the effective rise in the competition several organisations tend to consider various
tactics undertaking the development and growth of company. In regard of Brichbox the consider
prominent focus on the collaborative relationship considering the objective of implementing
personalization in business. For this collaborative relationship depict the suitable process of
working in collective manner considering the goal of accomplishing desired objectives (Singh,
Sawhney and Kahlon, 2019). Hence it represents the strategic relations of company which is
useful for implementing personalization and the significance of collaborative relationship and
strategic relations are described as below:
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 By considering the suitable focus on the collaborative relationship is easy for an
organisation in terms of expanding their business activities at the international level and
also share profitability. In regard of Brichbox they tend to consider suitable development
of relationship considering the suitable collaboration with company.
 Moreover, company effectively considered collaborative relationship and strategic
relations as it is easy for them to achieve their prominent objectives. Moreover,
personalization is implemented considering the effective use of digital technology for
effective level (Sari, 2020). For example, by considering the strategic relations and
collaborating respective company is competent for effectively fulfilling the requirements
of individual by delivering products on the monthly basis.
 Along with this it is important to undertake it because it is useful in terms of effectively
assessing the data of user bargaining prominent information considering the customers
understand the requirements of individuals.
 Besides this both of them are helpful by digital technology in terms of implementing
personalisation effectively (Kane, 2019). In terms of Brichbox they also effectively put
emphasis on expanding the company by having suitable Access for the large sources and
their customers.
By undertaking the word discussion, it is identified that company effectively consider the
strategic relations which is useful for them to achieve their objectives. Besides this it is also
helpful to implement personalization by which they are capable and towns of developing positive
relations. Moreover, depict the suitable rational for the long-term growth of business by focusing
on fulfilment of the requirements of individual.
LO5.Compare and contrast digital business and e-commerce. What are the E-Commerce
principles and discuss how they could be applied to digital businesses?
In an organisation digital business and e-commerce plays an important role by focusing on
the suitable learning of company. Considering the retail sector maximum number of
organisations effectively use digital businesses. For this the changing market and their Trends are
important in order to get aware about the objectives which are achieved prominently (Newman
and et. al., 2019). Hence, they both are different from each other and for this the differentiation is
discussed below
Basis Digital business E-commerce
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Meaning It depicts the suitable
business by considering the
advanced technology
undertaking the competitive
advantage regarding the
operations and functions of
an organisation.
In this the purchasing and
selling of products
considering the effective use
of online platform and
internet (Sousa and Rocha,
2019).
Objectives It depicts the objectives of
digital business by carrying
forward suitable activities of
business for having
prominent use of digital
platforms (Khin and Ho,
2019).
By considering the effective
use of e-commerce it depicts
the prominent objective
regarding the offerings of
products which is useful for
the online platform and
undertaken as the secured
manner.
Applications Digital business is used at the
broad level in the market
area.
E-Commerce significantly
useful towards the operations
of retail sector and their
activities (Flyverbom, Deibert
and Matten, 2019).
By considering the word discussion it is identified that the significant use and focus on
the prominent concepts are developed for the customers in order to get prominent result. Hence it
is essential for having effective market analysis considering the challenges and eliminating them.
Moreover, this concept has vs principles which are discussed below:
 Business plan: It effectively depicts as the essential principal for E-Commerce platform
bi representing suitable planning of business which is effective to carry forward the
overall process. It is also considered as the time consuming which is required for the
suitable knowledge of market research and overall strategy (Kohli and Melville, 2019).
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Therefore, without implementing plan it is not easy to achieve from net objectives and
goals.
 Responsive e-shop: Another principle is also important in order to specify the effective
use of e-commerce and suitable requirements in regard of responsive atom and also get
aware for the issues of enquiry and effective attraction of customers. In this company is
also fast forward regarding the response and also represent the capability to improve the
value of brand at the effective level.
 Be-aware of returns: It represents prominent business activities that tends to run online
activities and also aware considering the time and date which is mentioned from the side
of customer (Ghezzi and Cavallo, 2020). It is complex because it leads to keep things
update considering the return policy and also useful in terms of enhancing trust of
customers towards the business.
 Use many payment methods: It represent the prominent principle of e-commerce as it
reflects for the business activities which is useful as the alternative and represent the
several payment methods including Google pay e-wallets and many more (Bouncken,
Kraus and Roig-Tierno, 2019). Away with this the cash on delivery is also considered as
the prominent payment method but it is used in few areas only.
Therefore, it is identified that the digital business and e commerce effectively need in
terms of carrying forward and accomplishing prominent goals in suitable manner. Along with
this the effective market research is required in order to get positive result. For this several types
of principals are discussed and e-commerce also easily access over the smartphone’s computers
and other electronic devices for having convenient shopping. It effectively represents the
prominent products and services which are available for The E-Commerce transactions
considering the financial services as well.
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CONCLUSION
By taking the above discussion it is identified that advanced business is expanding in the
market considering the appropriate ascent of rivalry for business which is interconnected for the
digitalization. It is basic to know with respect to the advanced organizations that prompts hertz
the accomplishment of reasonable objectives and speculations. This report gives the short data by
zeroing in on the personalization area. it likewise talks about the idea of virtual business
investigation of climate with the assistance of reasonable structures community-oriented
relationship and examination among the advanced business and online business.
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