Key Trends, Advantages & Disadvantages of Virtual Business Management

This article discusses the key trends, advantages, and disadvantages of managing virtual businesses in the global environment. It also explores the relevance of technology in influencing Alibaba.com and MakeMyTrip.com. Additionally, it compares and contrasts native apps against web apps and examines the impact of ROI on digital businesses, specifically focusing on PWA on Alibaba.com. The article also covers emerging digital business models and the challenges associated with IS threats and ethics. Lastly, it discusses how Alibaba.com and MakeMyTrip.com would deal with a situation if held responsible.

Digital Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
Question 1: LO1...............................................................................................................................1
Key trends, advantages & disadvantages of management of virtual business within global
environment as well as relevance of technology to place influence upon Alibaba.com and
MakeMyTrip.com.......................................................................................................................1
Question 2: LO4...............................................................................................................................3
Comparing & contrasting native apps against web apps along with the impact of ROI on
digital businesses in general and specifically of PWA on Alibaba.com.....................................3
Question 3: LO2...............................................................................................................................4
Emerging digital business models and challenges associated with IS threats and ethics in
general.........................................................................................................................................4
Question 4: LO3...............................................................................................................................5
Dealing with situation at both companies differently if held responsible...................................5
Question 5: LO5...............................................................................................................................7
Comparing & contrasting digital business and e-commerce along with E-Commerce
principles and their application to digital businesses..................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital business is comprehensively defined as the enterprise structure which put to use,
technology, for the purpose of generating new value in business model, improving the
experiences drawn by the customers and leveraging the internal competencies of the
organisation. This renders aid to the core business operations so that the overall business
efficiency can be significantly boosted (Chaffey, Hemphill and Edmundson-Bird, 2019). Digital
businesses not just encompass the corporations which operate in a digital way but also the
enterprises that carry out transformation through execution of digital disruption.
The present project explores the case study revolving around two digital businesses
named Alibaba.com and MakeMyTrip.com respectively. It consists of the trends, pros and cons
linked with virtual business management. In addition to this, the report encompasses the overall
contrast as well as comparison between web apps and native apps. Also, a discussion upon the
distinct forms of models of digital business is included. Along with this, the issues related to
information security as well as ethics are also covered. Lastly, a contrast as well as comparison is
demonstrated between digital business and e-commerce business together with the effective
application of e-commerce principle on to the digital business.
Question 1: LO1
Key trends, advantages & disadvantages of management of virtual business within global
environment as well as relevance of technology to place influence upon Alibaba.com and
MakeMyTrip.com
A virtual business is referred to as a form of enterprise that carries out its maximum
business transactions as well as activities through the utilisation of internet. In this relation, it is
identified that the key trends of managing these kind of businesses within the global landscape is
as follows:-
Internet:
This is acknowledged to be the primary trend or most important facet for management of
virtual businesses. It provides assistance to these organisation in effectively exchanging the data
and consequently facilitating faster business transactions and activities. This is the essence of a
virtual business without which these organisation cannot operate in market place.
Technology:
1

Technology is another important trend which influences the functioning of virtual
businesses. It can be said that technology is the major driving factor because of which virtual
businesses are able to sustain in market place. The latest and emergent trends in technology are
leveraged by these businesses to enhance their scale and size.
Mobile Communication:
It is often seen that virtual businesses use mobile communication applications besides fax
and email, for the purpose of exchanging business data (Holotiuk and Beimborn, 2017). With
this, information can be easily disbursed within the target individuals (employees) in a quick
manner. This allows execution of business decisions in a rapid course of time.
Advantages of managing virtual businesses Brick-and-mortar cost savings: Virtual businesses do not have to invest money in order
to maintain brick and mortar style stores as majority of their operations occur upon
internet. Flexibility: It is considered that virtual businesses are more flexible than conventional
form of businesses when contrasted on the basis of reaction towards market changes. Happier and productive workforce: The availability of the option to work from their
homes or from any of the remote locations increases the productivity of staff, giving them
high job satisfaction. This helps them in maintaining work life balance.
Disadvantages of managing virtual businesses Absence of cohesion: In a virtual business setup, employees maybe located at far off
places. This implies negligible or no face to face interaction among them. When the
workforce operates from distinct geographies, it leads to reduction in institutional
cohesion and emergence of communication barriers. Non timely staff monitoring: As the working of staff of virtual businesses can not be
constantly monitored at regular intervals of time, it leads to lack of disciplined and
organized behaviour within the employees.
Importance of technology and its impact on Alibaba.com and MakeMyTrip.com
Technology is an imperative component of corporate lives. It has streamlined business
operations with the introduction of IT tools, logistics, supply chain management, communication
techniques and so on (Homburg, Wielgos and Kühnl, 2019). It is analysed that businesses
running as a part of global economy are largely benefited by the emergence of technology.
2

Specifically, it is determined that digital businesses such as MakeMyTrip as well as Alibaba has
evolved with the help of technology. Both of these companies have gained benefits with the
utilisation of PWAs that have resulted into delivery of smooth alongside seamless user
experience. Over the course of time, their user retention ratios have also increased with the help
of technology.
Question 2: LO4
Comparing & contrasting native apps against web apps along with the impact of ROI on digital
businesses in general and specifically of PWA on Alibaba.com
The native apps are installed directly and there is no requirement to get in connect with
internet services and it directly work on smartphones as well. On the other hand web apps is the
one that has worked in support of browser along with this also requires either Wi-Fi connection
or cell signal. The native apps is build for a particular platform and must have been used in iOS,
Android, Samsung or iPhone devices. It has been downloaded and installed through app stores
along with this also having better accessibility of different system as like GPS, camera
applications, Snapchat, Google maps and many others those have run it the mobile device itself.
On the other hand web apps has been accessed through internet browser and also assessed with
any of the device as via internet browser (Ismagilova, 2017). It is not basically native to any
specialised system and also be not needed to installed and downloaded. As they are more
responsive in terms of its nature they look quite differently as per mobile applications.
In addition native apps are much faster as compared to web apps and having better
functionality in term of accessibility and also works offline as well. It is more safe and secure
apps as with this it is easy to make effective availability of development tools. It is also be quite
expensive and hard to maintain as well as developed. While web apps doesn't need to be
installed thus it is easy to maintain and update. But it doesn't work as offline and have slower in
speed as compared to mobile application.
The return of investment on any of digital business and its impact is more challenging
due to the difficulty that is developed through customer's interaction. The digital transformation
couldn't be measured with single metric and there is a need to evaluate and recognise customer
improvement and advancement. A digital business are basically more compelling and it is an
effective combination of increment of sale, enhancement of new customer's and its retention,
3

advancement of customer satisfaction, quality and product improvement and product
enhancement along with engineering design and productivity. It is required to identify digital
innovation and its efforts within which sustain focus about market value and revenue generation.
In this need of customer's is to be acknowledge as while creating and collective larger customer
base so that better interaction is processed (Kane, 2015). The investment within digital
innovation is required to manage so that workflow is managed and controlled as it promote better
digital culture within working place.
Return on investment on Alibaba.com as in concern of PWA is about conversion of 76%
as it is the largest business and also serve diverse customer's base all across 200 countries. In
support of PWA i.e. progressive web apps build fast, reliable and effective experience towards
mobile apps and in this they have delivered total conversion of about 76% as by collective of all
browsers. The investment of PWA increases user rate as on iOS by 14% and in android by 30%.
Question 3: LO2
Emerging digital business models and challenges associated with IS threats and ethics in general
With the efflux of time, digitalisation has left a significant impact on every sphere of life.
In this relation, digital businesses have emerged as an imperative part of commercial scenario.
Now, there are various models of digital business which are leveraged by companies to achieve
success and growth in the modern era. Such business models are explored below:-
Emerging digital business models
Freemium Model:
This is acknowledged as a commonly used model for digital businesses. In this setup, the
user is entitled to receipt of a product or service without any expenditure to be made. For the
basic functionality, no amount needs to be incurred. To leverage the premium functions of the
business, the users have to pay a significant sum of money. Through the usage of this model, the
organisations can gain the attention of several individuals and earn high revenues in considerably
shorter span of time. The main intent of businesses using this model is to stimulate the behaviour
of users by instilling an interest and influence within them towards the option of accessing the
premium features (Kane, 2015). It is determined that the key to accomplishment of success in
freemium business model is conversion rate. The common examples of companies applying this
digital business model include LinkedIn, Spotify, Canva and many more.
4

Subscription Model:
Under this model of digital business, the offerings of company are generally offered in
the form of subscription. In subscription model, a sum of money which is basically occurred only
once is divided or a new offering is created that is periodically billed. The main intent of
leveraging this digital business model is to retain the customers for a considerably longer period
of time in future context. Opposed to single time purchase, benefit is drawn by users in this
digital business model in the form of service improvement or expansion. The common examples
of companies that make use of this kind of digital business model encompass Netflix, Internet
Provider and Amazon.
Access over Ownership Model:
This digitally business model is also referred to as letting. Under this model, the offerings
that can usually just be purchased are given to others in the form of lending for a fixed period of
time (Kraus, Roig-Tierno and Bouncken, 2019). Car sharing is considered as one of the best
examples of this digital business model whereby the vehicle can be accessed by other individuals
for a certain time period and distance against a fixed charge. The examples of corporations
capitalising upon this business model consist of Lyft, AirBnB, Mobility, and so on.
Challenges linked to IS threats and ethics
Although the models of digital businesses bear fruitful outcomes, they lead to emergence
of IS threats and ethical issues. In this relation, the number of information security threats that
need to be taken into due consideration encompass sabotage, virus attacks, extorted information,
identity thefts, information thefts, hacking, etc. Besides this, ethical issues which should be
considered include honesty, transparency, accountability, trust, fairness, etc. When digital
businesses take into account these issues, they are able to ensure sustainability in market place
for a longer period of time in future context.
Question 4: LO3
Dealing with situation at both companies differently if held responsible
The companies must have make use of PWA and in order dealt with the situation of
Alibaba has primarily worked with mobile apps along with this business has maintained clear
focus about designing certain strategy. In this web browser is quite limited with the functionality
and it is difficult for the Alibaba to deliver and engage the users with support of mobile and its
5

web users. Thus it is required to shift-up towards native application so that easiest solution is
developed through direct browsing. To manage the certain condition it is required that business
mus have provide better solution to customer's so that its effectiveness is increases along with
increment of potential users.
On the other hand PWA at Makemytrip.com has increases the conversion with three
times (Kreutzer, Neugebauer and Pattloch, 2017). It is basically a leading travel company and
have its native application with 20 million download and it is key revenue generation of
business. Makemytrip.com faces certain challenges about to make strong connection with
customer's and with about shortcoming of low ended phones. It make difficult for downloading
native apps and in order to manage that it is required to make effective understanding about cost
of customer's acquisition. The company also must build low end devices with slower network so
that Makemytrip.com merge with mobile apps so that its effectiveness is increases while
reducing discovery cost so that customer's engagement is increases. As context to responsibility
Makemytrip.com collaborate with PWA by which page load time is reduce with 38% so that
shopper session along with this bound rate decreases with 20%.
PWA is basically network based programming though which complex clarification within
website is measured and in this long terms and easy accessibility is achieved with more easiness
and comfort. It usually aid to make lead by which security of web is developed as while
prerequisite with innovation so that server connectivity is promoted in sustained mode. The
digital partnership has increases the level of innovation and also bring new capabilities and
opportunities within which profit and revenue both get increases. It brings significant
modification within technological shifts so that its growth and development is increases. In
support of it adequate balance in between services is anticipated so that customer's need and
requirement is fulfilled. It brings disruptive modification so that customer's experience is
increases and working capabilities of business is increases (Libert, Beck and Wind, 2016). But in
this organisation must have ensure that all the necessity operations is required to induce so that
digital culture is cultivates so that value creation is required to measure. It is essential that
business must have adapt as well as embrace digital modifications as in this business ability is
required to interpret so that disruption is controlled in effective manner.
6

Question 5: LO5
Comparing & contrasting digital business and e-commerce along with E-Commerce principles
and their application to digital businesses
Digital business and e-commerce many similarities and simultaneously have several
dissimilarities. Both the businesses are contrasted and compared as follows:-
Similarities:
As e-commerce is a subset of digital business, thus the basic business model is alike.
Both the businesses work with the help of technologies and internet. In both the business types,
interaction with the customers takes place in online mode only. There is no face to face
communication with the customer base at any point of time (Liu, 2020). Both the businesses
foster the development of partner relationships in order to provide the customers with add-ons,
accessories, and other essential services during or after sale.
Dissimilarities:
The main dissimilarity underlies in the inference of both concepts. People often use the
two terms interchangeably yet a significant difference lies between e-commerce and digital
business. In this relation, the former is the outward facing procedure encompassing
communication with users in the form of purchase as well as sale. Contrary to this, digital
business is identified as the behind the scene digital machinery used for the purpose of
streamlining business operations and conducting business transactions in online mode. Digital
business may encompass e-commerce but vice versa does not hold true.
Principles of E-commerce and application to digital businesses
User friendliness:
It is important that an e-commerce app or website can be easily navigated as easy search
enables the users to look upon the different categories of products. When the interface is user
friendly, it tempts the users to carry out a purchase (Márquez and Lev, 2019). Furthermore, a
web page containing multiple pictures is able to easily draw the attention of customers towards it
as it appeals to their eyes. This principle can also be adapted to digital business as these
organisation just have web as a point of contact with the customers and thus the accessibility
should be smooth.
Focus on security:
7

Security is one of the most crucial facets for e-commerce websites. It is important
because users who carry out online purchases are found to be wary of their personal and bank
details. They are concerned regarding the exposure of their sensitive information to third party.
Their mindset is such that they required safe and secure payment gateway that can easily let them
check out. The principle of security is also applicable to the digital businesses as they are also
exposed IS threats like hacking, identify thefts, and so on. Digital businesses can follow this
principle to create a safe place for public.
Efficient CTA:
E-commerce platforms mainly aim to augment the conversions, thus pointing out towards
generation of higher income. In this relation, CTA (Call To Action) plays an imperative role. The
audience comes to these platforms seeking a particular solution, thus it is very important that the
words used by e-commerce businesses upon the call to action button are aligned with the
probable questions in the minds of users. The buttons must take the individuals to the desirable
solution to their queries. To ensure high conversions, action driven CTA words are used by
businesses. This principle can be easily applied onto digital business for the purpose of gaining
the attention of larger audience and influencing them for purchasing the products and/or services.
8

CONCLUSION
It is summarised that technology has resulted into transformation of the manner in which
businesses now conduct operations. Besides this, it has been inferred that there are several trends
which affect the virtual business and these are technology, internet and mobile communication.
Virtual businesses increase productivity of employees by providing them with the option of
remote working. In addition to this, digital businesses and e-commerce enterprises are similar
and dissimilar on a number of parameters. Along with this, it is determined that there are
multiple principles of e-commerce that include efficient CTA, user friendliness and focus on
security.
9

REFERENCES
Books and Journals
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2019. Digital business and e-commerce
management. Pearson UK.
Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.
Homburg, C., Wielgos, D. and Kühnl, C., 2019. Digital business capability and its effect on firm
performance. In AMA Educators' Proceedings (Vol. 30, pp. ICM-2). American
Marketing Association; Curran.
Ismagilova, L.A. And et. al., 2017. Digital business model and smart economy sectoral
development trajectories substantiation. In Internet of Things, Smart Spaces, and Next
Generation Networks and Systems (pp. 13-28). Springer, Cham.
Kane, G.C. And et. al., 2015. Is your business ready for a digital future?. MIT Sloan management
review, 56(4), p.37.
Kane, G.C. And et. al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
Management Review and Deloitte University Press, 14(1-25).
Kraus, S., Roig-Tierno, N. and Bouncken, R.B., 2019. Digital innovation and venturing: an
introduction into the digitalization of entrepreneurship.
Kreutzer, R.T., Neugebauer, T. and Pattloch, A., 2017. Digital business leadership. Digital
Transformation–Geschäftsmodell-Innovation–agile Organisation–Change-
Management.
Libert, B., Beck, M. and Wind, J., 2016. The network imperative: How to survive and grow in the
age of digital business models. Harvard Business Review Press.
Liu, K., 2020, May. Digital Innovation and Transformation to Business Ecosystems.
In FEMIB (p. 7).
Márquez, F.P.G. and Lev, B. eds., 2019. Data Science and Digital Business. Springer.
10