Overview of Digital Business: Advantages and Disadvantages

This document provides an overview of digital business and its advantages and disadvantages, specifically in the context of ASOS, an online shopping retailer. It discusses the impact of new digital business models, collaborative relationships, and e-commerce principles. The document also highlights the importance of cyber security and ethics in digital business.

Digital business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Discuss an overview of digital business with its advantages and disadvantages applied to your
chosen organisation................................................................................................................1
TASK 2............................................................................................................................................3
Critically evaluate new and emerging digital business models in of key business issues such as
cyber security and ethics that your organisation uses or may use..........................................3
TASK 3............................................................................................................................................4
Evaluate the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen organisation...............................................................................4
TASK 4............................................................................................................................................6
Discuss how e-commerce principles could be used by your chosen organisation.................6
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
Digital business is the concept that has taken a power over the traditional businesses as the
internet has boon the profitability and productivity in the business environment. With the
emergence of new technologies and software’s businesses are transforming there operation with
the use of digitalization from production to sales (Chaffey, Edmundson-Bird and Hemphill,
2019). People are getting keener on online platform for purchasing of their daily necessities to
their luxury item which in turn gives rise to the digital businesses of the country. The report is
about the ASOS an online shopping retailer of clothes and cosmetics for both men and women.
The report outlines the overview of digital business in context of ASOS along with its advantage
and disadvantage in organisation. Various new and emerging digital business models are
highlighted in the report. The report also outlines the various collaborative relationship and
strategic alliances of the ASOS with latest technology. Moreover the e-commerce principles that
every organisation is required to implement in order to become successful E- commerce
business.
MAIN BODY
TASK 1
Discuss an overview of digital business with its advantages and disadvantages applied to your
chosen organisation
With the changing technology the world is adapting itself more and more towards the
digitalization. Government is supporting the various digital programs to create the awareness of
new technologies in the citizens of the country (Sousa and Rocha, 2019). Technology is
flourishing and growing the economy and structure of the developing countries. With the
growing technology small businesses are able to operate themselves in the international market
via the internet. The digital businesses are helping the various small, medium and large sized
businesses to gather the human resources and technology together to create the innovative
product and services for the customers. Hence, the digital transformation into the business
environment organisations are able to increase their profitability as well as the quality of work
with the help of man force and technology together which increased the customer satisfaction
thereby gaining the competitive advantages in the dynamic world full of rivalries.
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ASOS is a well-known British online store for the shopping of clothes and cosmetics based
in London, England. The ASOS was founded in 2000 in London by Nick Robertson. The
company has its own website which sells approx 850 brands along with its own clothing and
accessories range which operates in approx 196 countries of the UK, USA and Europe. The
ASOS stands for As Seen On Screen with the tagline "by what you see on film and TV". The
owner of the Danish company Bestseller, Anders Holch Povlsen is the largest stakeholder of
ASOS.
The advantages of Digital business are:
Attainment of larger customer base: Digital business has allowed the organisation to contact
and reach large amount of customers easily with less expense (Wirtz, B.W., 2019). The use
digital technology like internet has given advantage to the digital businesses to globally connect
with the audience they want to showcase their products and services at one time. Hence, ASOS is
highly benefited with digital business and its assets in reaching out customers globally.
Superior information collection: With the upcoming data collection techniques and tools due to
the advancement of the technology, digital businesses have been highly benefited with
implementation of such technology into their businesses to analyse upcoming opportunities of
the market to increase productivity and profitability (Härting, Reichstein and Schad, 2018).
ASOS takes various online feedbacks through the digital platforms like Instagram, Facebook,
Twitter, YouTube etc. in order to gather large amount of data from the customers located at the
different locations all over the world. Through this organisation are benefited in analysing the
data carefully to understand the demand and the needs of the customers and then use it in order
to fulfil them with quality and affordable prices in future. Hence, ASOS is highly benefited with
digital business as it doesn't require physical data collection criteria.
Technology driven: This is the key advantage of the digital business as their highly technology
addicted which helps in active participation with new and emerging technology. ASOS takes the
advantage of the digital business in increasing the habit and craze of online shopping among the
consumers thereby regularly restructuring with the latest updated technologies for digital
marketing, supply chain of products, packaging etc (Strutynska and et. al 2020). Therefore the
digital business are highly collaborative with latest technologies like cloud computing,
encryption software's etc. More advanced technology in the digital business helps the
organisation in attracting largest customers for its organisation.
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Disadvantages of digital business are:
High lucidity of prices: Digital business majorly faces the disadvantage of high price
transparency between the consumers and the organisation compared to the traditional businesses.
This gives consumers the bargaining power over the organisation as it has become easy for the
customers to search for alternative with the same or low price (Luz Martín‐Peña, Díaz‐Garrido,
and Sánchez‐López, 2018). This factor of transparency of the price set apart organisation from
gaining competitive advantage or the power of price making. ASOS has to give its fashionable
clothes and accessories at lower price because of the price strategies of rival organisation.
Security from cybercrimes: Cyber crimes are increasing day by day within the online digital
business due to which organisation are getting disadvantage of conducting digital business.
Security of the personal data as well as the data of consumers is always on the edge of risk due to
increase in cyber attacks, hacking and other several unethical digital activities (Hacioglu, 2020).
ASOS always face the risk and threat of phishing attacks, hacking, jargons etc. over its website
due to which company might fall under the trap of loss of financial data, customers personal data
and payment issue that can result in downfall of reputation and profitability of the ASOS.
TASK 2
Critically evaluate new and emerging digital business models in of key business issues such as
cyber security and ethics that your organisation uses or may use
Digital businesses models are the concept that are created to inbuilt or create value based
businesses to develop customer satisfaction and benefits using the latest updated digital
technologies (Iljashenko, Bagaeva, and Levina, 2019). The aim of this digital business model is
to provide the customers with the significant advantage for which they are paying as well as to
increase the profits of the organisation along with decreasing the operating cost. With the
digitalization and the digital transformation in the world it is very important to create the new
and emerging digital business models that an organisation like e-commerce businesses can adapt
to gain competitive advantage and high profit in the upcoming future.
Freemium model: This model is for the customers to receive limited amount of information’s
and services over the digital platforms of the organisation free of charge and to access the more
information or the more services the consumer is required to purchase premium version to take
more benefits of the products and services provide by the organisation (Vedernikov and et. al.,
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2020). ASOS can implement this model by providing limited discounts and limited products on
its free version of the website and to gain more discounts over the various products the consumer
is required to upgrade itself from the free version to the paid version or the premium version of
the website which will benefit the consumers in accessing various range of products and various
discounts over various branded apparels.
Direct to consumer model: Businesses are developing themselves by adopting the various new
and emerging business models which includes direct to consumer model that states business is a
directly connecting with the consumers in order to supply the products and services that the
organisations are offering without the means of any mediator or the inside buyer between the
organisation and the consumer (Christen, Gordijn and Loi, 2020). Earlier there used to various in
between buyer in the cycle of product sold to the consumer. But now with new emerging digital
business model ASOS is directly connecting to the large size customers globally which is
making them the global network dealer that is operating directly with the end uses which helps
the organisation in giving customer more realistic experience towards a product. Also helps the
organisation to getting true to and natural feedback from the consumers there by making the
consumer buyer relationship stronger and loyal.
Hence, these digital business models add the value within the products and services of ASOS
with use of the digital technologies that helps the business in innovation of various products and
services into the digital business as per the digital business models. These digital business
models help the organisation in capturing the new market as they developed on the basis of latest
market trends. ASOS can gain major advantage with new and emerging digital business models
in reaching out potential customers thereby increasing sales and traffic on the website. Through
new digital models in ASOS customers will be more willing to pay for the latest fashionable
clothes and accessories offered by ASOS.
TASK 3
Evaluate the impact of new collaborative relationships and strategic alliances through digital
technology for your chosen organisation
In the competitive environment for the e- commerce businesses it is very important to form
some collaborative relationships and strategic alliance through the digital technology and ordered
to take competitive advantage that will benefit the organisations in effectively surviving this
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dynamic environment where the technology is changing speedily and abruptly (Aagaard,
Aagaard and Harrison, 2019). ASOS is a British digital fashion and cosmetic shopping platform
for the men and women with almost 850 brands. The firm has many e-collaborative relationships
with the most recognised brands within the clothing chain to increase the brand image and
popularity. ASOS has a partnership with a Danish company Bestseller a retail clothing chain as
the chain includes most recognised brands of the world Vero Moda and Jack and Jones. The firm
always have a collaborative relationship with 'Deloitte' to maintain the professional service
networks regarding the financial deals and other revenue based network. The firm has attention
and focus on e- commerce, artificial intelligence, digital marketing, and digital streaming. The
company forms various collaborative relationships with the various rivalries within the UK as it
is the mission of the ASOS to become the world's number one destination for fashion loving
peoples. ASOS in E-Commerce marketplace in UK uses the AI assistance provider and cloud
computing technology to generate the revenue and gain market capitalisation with advanced
security and safety for its investors and consumers. ASOS has various brands with diversified
products available on its site with excellent quality and affordable prices which give a company
competitive edge on other rivalries like H&M, Zara etc. The company regularly innovates as per
the new technology using the research and development team and also has affordable cost as per
new technologies. Company as the various opportunities to collaborate with various brands and
to increase the number of online shoppers on its website. Company has the efficient cost
leadership strategic alliances to maintain the affordable prices for the consumers on its website as
compared with the other companies.
ASOS deal with the unexploited needs and desires of a customer by forming a collaborative
partnership or strategic alliance which benefits in acquirement of a large market share and
competitive lead. ASOS launched the new capsule collaboration with the Chinatown market, a
LA based street wear brand. Through which the company launched a new collection on its online
stores which contains approx 85 pieces with different graphics and the patterns of various range
and maintaining low prices starting from 8 dollars.
ASOS is making the very proud moment for its organisation by collaborating with the LGBTQ
community and charity GLAAD. Operation helps the firm in placing its position in the market
inclusivity. ASOS created the collaborative relationship with the approx 20 influencers of the
Instagram to popularise the new brand ‘collusion’. Using the digital technology of the Instagram
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by the stories influencers posted the success of collusion by putting the #ASOS which resulted in
the high sales with the affordable price print over the products. ASOS is able to succeed with
such a collaborator alliances and partnerships with various brands and companies in the market
that also helps the company in penetrating its business in terms of innovation and technology.
The company is able to attain diversification of the products with the unique range available or
its website along with this company uses the various marketing and the studio production
strategies to attract consumers.
TASK 4
Discuss how e-commerce principles could be used by your chosen organisation
Today's young generation has adopted the online shopping into their lifestyle as a vital part
of their life. Rather than going to the physical stores people are preferring more to shop online
using their mobile phones with ease and flexibility (Esmaeilzadeh, Grenn and Roberts, 2019).
With the upcoming technology and the advanced technology small businesses, large businesses
and start-ups are adopting the concept of digital business into their organisation. Day by day the
trend of E-commerce business is getting the hype in the business environment. Buyers and
sellers both are shifted their habits and focus towards the E-Commerce platforms to shop
effortlessly and to maximize their profits. E-commerce businesses need to change themselves
with the changing technology in order to sustain in this competitive E-business environment. The
most important thing for these E-Commerce businesses is to make their websites and apps
attractive in order to attract large number of consumers along with loyalty of these consumers
towards their e- commerce business. Most beautiful site gain more competitive advantage and
which brings large amount of customers and maximum profitability to their businesses.
Therefore in order to survive the competitive market ASOS a British online shopping company
uses various e- commerce principles that are discussed below:
 User friendliness: It is very important for The E-Commerce business to be handy and
flexible for the users to browse with comfort (Stair and Reynolds, 2020). Basically The
E-Commerce businesses must have their apps and websites that are user friendly so that
the person does not feel the process of online shopping complex and time-consuming.
ASOS has user-friendly website that provides the different sections for the men and
women to search for their products easily without any hustle.
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 Insert well-organized navigation: People are more attracted to those websites and e-
commerce business that give them assistance for the easy hunting of their desired
products and services (Chaffey, Edmundson-Bird and Hemphill, 2019). Therefore it is
very essential for The E-Commerce business to adopt the principle of efficient navigation
into their businesses so that the customers are easy to differentiate the products as per
their categories and search them over the navigation bar provided by the organisation on
their online sites. ASOS has a significant navigation service on its online shopping
website for the men and women to easily find items which they are looking for.
 Highlight on security: Security is the main concern for The E-Commerce businesses as
people are still not that much comfortable in paying online due to the fear of security
issues (Chaffey, Edmundson-Bird and Hemphill, 2019). Therefore it is very essential for
the reformers businesses to secure their websites so that the personal data of the company
as well as the customers a protected effectively. ASOS use encryption software to secure
payment and other personal details of consumers. Hence, ASOS has a very effective
security system in its website which makes their organisation trustworthy to customers to
purchase and pay digitally.
 Valuable product description: Product description is another principle in the E-
Commerce business that states businesses must provide the short and informative
descriptions of their products on their website so that people are aware of what they are
buying. ASOS puts the product description very effectively below every product which
mentions the quality, style, size, colour and other information related to the various
products of the consumers which are easily readable and provide consumers with the
informative knowledge about the product which helps them in making the decisions to
buy those products.
 Constant branding: It is very e important for The E-Commerce business to regularly and
effectively promote their business to grab the attention of the customers (Sousa and
Rocha, 2019). ASOS uses digitally marketing tactics to consistently advertise its business
which helps them in branding and creating a relationship with customers. It is very
important for the organisation to continuously market its firm’s products and services to
make them visible. ASOS use various platforms like Twitter, Facebook, Google,
Instagram etc. to launch campaign for the consistent branding of the organisation.
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 Fast delivery: It is very important for The E-Commerce business to have the fastest
delivery systems in their organisation to gain popularity among the consumers which
benefits them in gaining competitive advantage. The delivery of the products that the
consumers are buying from The E-Commerce sites must be precise and quick. Fast
delivery is the most essential principle for the digital business as in this fast pace world
people is expecting everything rapid and swift. ASOS maintains speedy and secure
delivery of the products to the customers and promise to do so in the future. With the
latest technology of drones and fast moving electronic vehicles ASOS can make its
delivery faster.
CONCLUSION
It is concluded from the above report that transformation of business into digital business
has now become essential to compete with this dynamic world. With the concepts of digital
marketing and digital payment every organisation is therefore required conduct some of its
functions digitally as citizens especially youth is interested in operating their lives via digital
media. Its is analysed from the above report that with growing technology trends and habits of
consumers are shifting their focus from traditional buying methods to online shopping. But
technology has its own disadvantages along with advantages. The world of business is changing
itself with new business models like subscription, freemium model etc. Moreover the
organisation is also collaborating with various digital agencies to secure their websites and make
their websites more attractive. Hence, it is essential for the digital business to adopt and
implement the various e- commerce principles in there working in order to build a successful E-
commerce business.
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References:
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