Digital Business: Trends, Advantages, and Disadvantages

This report explores the key trends, advantages, and disadvantages of managing a virtual business, with a focus on the Asos company. It discusses the importance of technology and its impact on businesses, as well as the comparison between situational and SWOT analysis. The report also evaluates emerging digital business models and the challenges associated with information security threats and ethics. Lastly, it highlights the significance of new collaborative relationships and strategic alliances in digital business.

Digital Business

EXECUTIVE SUMMARY
As per this report it can be said that the importance of digital business is ongoing demand
and digital businesses are taking hug market place and spread their recognition worldwide. This
report deal with the Asos company that operating their business in a digital form through online
retailer platforms. This company mainly offer cloths and cosmetics through digital platforms.
This company established in the year 2000 and the main aim of become top bran of fashion
industry. Digital business is beneficial for the company which help in expand business all around
the globe. Company make profit through new market, new customers and give them satisfactory
products and services. This report basically deal with the key trends, benefits a drawbacks of
virtual business and discussed a situational analysis of the SWOT model and also determine
digital business models and identify the challenges about the information and security and its
threats. Lastly, this report identifies the significance of new collaborative relation & strategic
alliances through technologies.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
QUESTION 1...................................................................................................................................4
Explain key trends, advantages & disadvantages of managing virtual business....................4
Importance of technology and its impacts on businesses.......................................................6
QUESTION 2...................................................................................................................................6
Compare and contrast Situation and SWOT analysis.............................................................6
Apply situation analysis for any one business in the above cases focussing on personalisation
................................................................................................................................................7
QUESTION 3...................................................................................................................................9
Critically evaluation of emerging digital business models and challenges associated with
information security threats and ethics in general..................................................................9
QUESTION 4.................................................................................................................................10
Importance of new collaborative relationships and strategic alliances through digital
technology for implementing personalisation......................................................................10
QUESTION 5.................................................................................................................................12
Compare and contrast digital business and e-commerce......................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Digital Business also considered as digital transformation, digital marketing which
provide a new way to engage, collaborate and establish a bridges between the people. Digital
business use appropriate technologies that create a new value and belief that customers can
experience. All the internal and external resources are necessary to perform the digital business
operations. For a successful business, traditional and modern players both are mandatory but in
this time modern businesses players like social media, online platforms, technologies and
internet connectivity all make digital business operations easier. For this report, Asos
organization is chosen. Asos is a famous British fashion & cosmetic company which operating
their business through online platforms. Headquarter of this retailer company is in London. The
prime purpose of this report is to identify the trends, advantage and disadvantage of the virtual
business. This report identifies strengths and weaknesses through situational analysis and also
considers SWOT analysis. Moreover, this report highlights the importance of digital and e-
commerce business and analyse the business model which determine the collaborative
relationship and the role of strategic alliances.
QUESTION 1
Explain key trends, advantages & disadvantages of managing virtual business
In this present time all the businesses are about to restructure because of the digitalization
of market. In this present time all the business come online through digital media and performing
their business operations on digital form efficiently through internet. Virtual business uses many
technological and electronic types of equipment which ensure the easy access of the day to day
business activities. Virtual business is provide many facilities which make the life easy of the
business owners and employees of the business like employees can perform their business
activity from any time and any where location (Allen, 2017). Asos is an online retailer company
of UK which offer different range of fashionable and cosmetic products which attract the large
number of people. Asos cover the entire marketplace and continuously expand their business on
the other areas. Company follow some key trends which make their virtual business operation
easier that are discussed below-
Massaging Apps

Messaging Apps mainly surpassed the online network and very essential for the virtual
businesses. Through messaging apps, companies can easily performing business activities as per
the current trends and this make easy all the selling and delivering activities for the company and
customers both. Messaging apps help to decline the development cost and the promotional cost
of the company. In this time, messaging apps have massive numbers of users (Boojihawon and
Ngoasong, 2018).
Social media
In social media platforms all the social channels included like websites, emails, search
engine, Facebook, Twitter, You tube, TV, radio and other media included like digital ads, audio
and video content etc. Asos Company uses all the social media platforms to make their business
more efficient.
Virtual Assistant
This time is all about the online and virtual media which provide all the technological
advancement that help all the virtual business work. Virtual assistants are become more
necessary and helpful to enhancement of business. Virtual assistant is a device and machine that
become more demanding now days. Asos Company utilizes all virtual assistant to maintain all
the technological activities and moments of the company.
Advantages and disadvantages of virtual business
Advantages - There are various advantages of virtual business which discussed below- Save Time and Travel - Virtual business help in save time and travel of employees it is a
big advantage of the Asos company which make suitable for the company employees to
perform their task anywhere. Dynamic Team Membership – Virtual business helpful to generate the dynamic teams
membership in which all the employees of the company across the world can participant
on a one single platforms. Asos company connect with all the employees through online
media and conduct meeting for employees interaction (Chaffey, Edmundson-Bird and
Hemphill, 2019 ). Lower overhead costs- Virtual business are very convenient by cost. Virtual business are
provide the facility of work from home so that employees can save their travel cost and
give more efforts to concentrate on business activities. Asos doing the same with their
employees.

Disadvantages
There are some disadvantages of virtual businesses which are given below- Communication error – Sometimes virtual businesses affected by the communication
error so that all the business activities become disturbed. Asos Company faced this
situation sometime but company recover this to take a corrective action.
 Lack of physical interaction – Due to lack of physical interaction, company experienced
some issue sometime because people can believe easily to the physical channels and
stores.
Importance of technology and its impacts on businesses
Digital businesses like Asos and Very, used augment reality technologies for the purpose
of the mapping all the fashionable dresses on to a specific model and provide help or their
customers so that they can purchase clothing that fits customers in an appropriate manner,
provide their clients and customers a simulated display of products on various kinds of body.
Asos is a online retail organization that leading technology for the business activities. Its
mandatory for the Asos to use advanced level of technologies so that company can easily interact
with the audience and promote their fashionable products so that company can engage large
number of audiences and gain more profit. The affect of utilizing augmented reality technologies
on the Asos and Very in a positive way ( Farani, Karimi and Motaghed, 2017).
With the help of technologies, companies are able to come online so that customers can do
online shopping more efficiently and also identified new experiences for online shopping.
Henceforth, company can gain more knowledge about the customer’s preferences and take
business decision according to this. Company consider the size, measurement of all the garment
products through using the technology and good presentation so that products look more
attractive so that people buy the product and company make more money.
QUESTION 2
Compare and contrast Situation and SWOT analysis
Compare -
Situation consider the manner where some specific things are placed in relation of the
location. This consider the features and proposals of the social situation like authority, role ,
norms and search contracts for another in a way which provide social unity along with the some

sets of actions. Situations analysis refers as an action and framework which adopted by the
company managers for identifying internal and external situations so that company can
understand the environment, capabilities and people. SWOT analysis used by the company.
SWOT analysis considered as a strategic model of planning. The comparison between strategic
analysis and SWOT analysis are given below-
Differentiation Situational Analysis SWOT analysis
Meaning This analysis refers as an
aggregation of the elements which
help in identifying the micro and
macro factors. Situational analysis
help to use the specific research for
the evaluation and analysed the
growth and help in identifying the
situation of the competitors.
Through SWOT analysis,
company can determine the
micro environmental
situations of the company so
that company can discover
the organizational
situations.
Purpose Asos company main purpose is to
evaluate the whole aspects of
situational analysis in external form
of factors so that company consider
the changes to change the way in
which company operate ( Heavin
and Power, 2018) .
Asos company main purpose
is to utilize SWOT analysis
to consider the details of
external factors and use it as
a strength and weakness of
the company so that
company can reduce all the
threats and get future
opportunities.
Contrast -
Situational and SWOT analysis are essential for the company and it utilized to analyse
those factors give positive impact on the company growth. Asos company manager considered
both analyses to identify the choice so that company can select the path.
Apply situation analysis for any one business in the above cases focussing on personalisation
PEST analysis

PEST analysis is used to apply the situational analysis of the company. With the help of
PEST analysis Asos identified the macro environmental factors which are discussed below-
 Political Factors – These factors included the political stability, some kind of taxes and
trade and regulations which affect directly to the business operations. Asos Company full
fill all the requirements of the political factors so that company easily perform their
business tasks. UK country political environment not that much influence the online
business of the company. Economic – These factors considered the growth and decline of the economy. UK comes
under the developed country so that it help in improve the profitability of the company
but sometimes fluctuations in economy lead the recession situation so that it affect the
pricing policies of the company which lead the differences in supply and demand of the
products. Company also set price as per the other countries economy position so that
company can easily attract the foreign countries people (Liere-Netheler, Vogelsang and
Packmohr, 2018). Social – These factors very much appropriate of the company. Asos is a cosmetic and
fashion based company so that company need to more focus on the choices, preference,
design and quality of the products according to the cultures and areas so that company
can full fill all the expectations of the customers. These factors mainly deal with the
lifestyle and standard of the people.
 Technological – These factors involved latest and advancement of technologies which
help in operate the Asos company business across the whole world. In this time, the
modification of technologies are t6aking place time to time so that company follow all
the core technology to make their business work in a smooth way. In UK, most of the
people use Microsoft Cloud related services which help the company to make all the
technological transaction in an effective way.

QUESTION 3
Critically evaluation of emerging digital business models and challenges associated with
information security threats and ethics in general
Digital business model basically determine the all the various aspects of the business
which use digital technologies and equipments and hope that company can improve their
business in a multiple way. Digital business and its model mainly help the business to develop
the market value of the company with the help of technologies.
Ad – supported model,
It is considered the important business model which mainly concentrates on the
promotional and selling activities of the company so that company can generate more profit
margins. Through this business model easily identify the customers and offer them relevant
details about the products that customers need to know about it.
Hidden revenue generation model,
It is also considered by the company. In this model company take social media benefits and
generate more profit. Each and every individual use this and utilize their services.
Hybrid Business Model,
This is also contain as an important emerging digital business model collaborate all the
traditional commodities an activities of company sales with the other additional services like
cloud and hardware which can get through the user subscription (Nambisan, 2017).
The challenges related to information security
Information security with the ethics cosier all the aspects of the business use many practices that
needed to secure all the information of the company which help an support the business an give
advancement of ethical usage. All the c challenges related to the information securities threats
are explained below- Shaky moral & it compass It considered the cyber security and the landscape.
Company also face the challenge of cyber security which affect the reputation of the
company so that Asos Company need to main focus on the frenetic climate so that
company can enhance their cyber security.
 Harrowing Headlines of harrowing is a big challenge for the company so that company
need to focus on the ethical and legal activities so that information security and its
obligations can performed well. All the ethical an legal obligations related to the security

incident of the data. Asos Company experience many security threats so that company
need to pay more attention on this.
In incorporation top the case study, Asos company manager generate hybrid business
model which help in expand the product space. This business model helps in engage all the
fashionable company on the digital media channels with many shoppers. It is determined that
hybrid business model give benefits to the company growth and help in gather the shopper data
also help in analysing the machine learning. Through this model, company easily give
notification regarding the cosmetic and fashionable clothing. This model helps in all the
operational activities of the business and help to face all the challenges of ethical and legal
aspects (Ngoasong, 2018).
Information security helped in different company context for instance, Asos is doing
successful business because of their online operation and business activities. Online business
need to protect all the information’s and company data so that company can save themselves
from the ethical threats. Few challenges of information security and its threats of Asos Company
are given below- Piracy – This is considered as an illegal copy of the detailed information system. Online
company mainly face these challenges. In market, there are many software developer
who designed these types of illegal copies of the company need aware of this activities.
 Unauthorised Access in the business – Company needs to take care of the unauthorised
access of the activities. There are many hackers available in the market that accesses the
business information in an unauthorised way. Asos company is totally based on online an
technology so company need to pay more attention on it and save their company from the
hackers.
QUESTION 4
Importance of new collaborative relationships and strategic alliances through digital technology
for implementing personalisation.
New collaborative relationships
Collaborative relationships arise in that situation when more person work in a collective manner
to achieve a common objective. Collaboration is like a situation in which various type of

individuals who have different prospective work together them to accomplish the task of a
business.
Importance of new collaborative relationships
Importance of new collaborative relationships through digital technology for implementing
personalization is really essential for the businesses which are as follow -
 Improve group interaction- Collaborative relationship through digital technology e
improve group interaction which helps to create good employee engagement with good
interaction through online and obtain Asos company goals through some technologies
like email, slack and Skype and another video and audio conferencing apps (Perkin and
Abraham, 2017).
 Quick flow of information- With the help of digital technology company e collaborative
relationship become stronger because technologies help information very quickly. Asos
share all the information through digital technologies like OK Google drive, Dropbox,
USB sticks, emails etc. Technologies help to share exact piece of files and documents.
Strategic Alliances
It is like an agreement between the companies that agreed to share all resources to take an
essential project. Basically strategic alliances help the companies to evolve the effective process
of the companies.
Importance of Strategic Alliances
The importance of Strategic Alliances in context of digital technology play a significant role in
company which are given below -
 The importance of Strategic Alliances enhancing with the use of digital technology,
through digital technologies companies easily develop products, create new information
system and share advanced serial and technological expertise (Sánchez, 2017).
 Strategic alliances with the use of digital technologies can effectively read all the
activities like increase competitive positioning, get entry to New Market, learn critical
skills and also share cost and risk of a huge development projects.
As per the case study, Asos company establish of effective decorative relationship with the
help of digital media and advanced technologies, Asos company manager confidence do
collaborative work a good impact of their fashion products through good digital technologies and
its implementation on personalization. Case study of Asos Company, with good collaboration

manager can spread the brand awareness to the new location of the business and also encourage
the people gain new experiences. According to the case study, manager of the company e
focused on personalized cross selling and up selling so that company can get best opportunities
to deliver personalization so that company can gain more profit. After established collaborative
relationship through digital technology and easy to understand what customer purchased and
searched so according to this company demonstrate same are complementary products to their
specific purchase. Asos Company invites the browsers in an attractive way on website and
provides the complete look of their products in a strategic manner. Company main motive is to
create a good value of customers with their potential orders and their relevant preference and
suggestions.
The latest example of Strategic Alliances through digital technology for implementing the
personalization given below -
Starbucks and Barnes and noble deal is the most essential example of strategic alliances,
Starbucks is famous for the coffee and Barnes & Noble company deal with stocks the books. Are
famous in their own fields and agree to share the cost and the both companies.
Best example of strategic alliances between Uber and spotify companies. These companies
alliance together to increase their sales through provide best services to their customers and gain
more profit together.
QUESTION 5
Compare and contrast digital business and e-commerce.
Digital Business
Digital businesses use high level of technologies to perform all the business activities like
build new value of business, good customer experience, smooth promotional activities that give
benefit of Asos Company and it make easy for the customers to buy products directly from the
digital platforms (Spil, Kijl and Salmela, 2016).
E- Commerce
E commerce business refers as electronic commerce business in which all the business activities
operating low electronic devices with the help of internet connectivity. All the buying and selling
activities are done with the help of electronic machines and equipments good efficiency of
internet.

Differentiation Digital Businesses E- Commerce
Meaning Digital business considered as an
undertaking industry, business,
commerce through information
technology & communication.
These businesses mainly
operating with using of internet.
These businesses carry out
business transactions
(Subramaniam, Iyer and
Venkatraman, 2019).
.these types of businesses
doing online commercial
transactions in which employer
of the company can
communicate with the
customer without face to face
direct interaction through real
application of e commerce like
online banking , shopping,
social networking. The basic
need of this build is a website.
Purpose The main purpose of digital
business is to create effective
image in new market and expand
effectively business globally with
new and exciting products.
The main purpose of e -
commerce is to give
profitability and growth to the
company and evolving the
customer reach , good
experience from buying to
deliver the products and
services (Visconti and Weis,
2020).
Potential Applications of e - commerce principles to digital Businesses
E- Commerce principles are playing a remarkable role for the business purpose and e
commerce principles are applicable to the digital business in an effective way. Some important
principles which E-Commerce considered such as e-commerce website need to easy to navigate,
use specific design elements, focus on security, know your target customer, use advanced
technology, include search column, give appropriate product descriptions, and proper
minimalistic layout of products etc. These principles of e-commerce are applicable in the digital
business which influences the growth of the business (Watanabe, et. al., 2018).

As per the case study, Asos company use e commerce technology and make company
business more effective. Asos dealing with technologies and also regulates all the day to day
operations through digital and e - commerce technologies (Why ASOS is the Absolute UK
Ecommerce Success Story, 2019). Asos is one to the biggest organisation and contain lots of
user. In UK many people use Microsoft cloud facilities. Asos company also dealing with the
mobile platform for the easy and quick access of products, services and transactions. Asos
products recommended some common e commerce sites. Some set of machine learning helpful
in determine the real time Strategies and behavior , old transaction and also consider current
browsing behavior which useful in ensure that right product recommend to the right people.
With the help of e commerce, Asos company create their own Strategy and many campaigns like
Asos Face book account managed many campaigns and share lots of funny post and other niche
campaign . For the successful campaign, company need to do target customer research more
effectively so that company can obtain higher gain. Asos provide their customers free shipping
worldwide and also free returns and company mainly concern on the efficiency of products
distribution, e commerce and its localization. Company also contain Strategic plan for
international sales which help the scale internationally. Asos consider as a UK most famous e
commerce company that does business digitally. Company launched their mobile shopping
platform and gives advantage to their user’s .Asos also give notifications to their users and notify
about their new offers and discounts and also about new products. Asos also provide facility of
easy payment through credit card data add with Smartphone camera through digital technology.
CONCLUSION
According to this report it is concluded that digital business is growing very rapidly and
give their proper contribution to make common people life more easy and comfortable. This
report identified many key trends, advantage and disadvantage of the virtual business an specify
that through virtual business company can easily deal with the massive number of employees.
Virtual businesses are beneficial for both company and customers. This report also determines
the comparison between the situational and SWOT analysis so that company can identify their
strength an weakness. This report also determines some business models which help in face all
the challenges that affect the company growth. This report discussed about the new collaborative
relationship and all the strategic alliances of the business. This report also evaluate some
information securities issues which give negative impact on the company development and also

analyse the importance of digital and e- commerce businesses which give positive impact on the
company operations.

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Online
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