Digital Business Environment

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Added on 2020-10-05

Digital Business Environment

Added on 2020-10-05

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Digital Business

Table of ContentsINTRODUCTION...........................................................................................................................3Business description.....................................................................................................................3Traditional Business Vs Digital Business....................................................................................3Digital business models................................................................................................................4Digital business activities................................................................................................................5Mode of operation........................................................................................................................5Digital business environment.......................................................................................................6Marketplace .................................................................................................................................6Market growth..............................................................................................................................7Market segmentation....................................................................................................................7Key growth factors for digital business........................................................................................8External forces impact on business operations............................................................................8CONCLUSIONS..............................................................................................................................9REFRENCE ..................................................................................................................................10

INTRODUCTION Digital business is the creation of new business which is being designed by blurring thedigital as well as physical worlds. They use technology to create new value in different areassuch as business model and customer experience which support their core operations. Theorganisation under taken under this report is Amazon which is an multinational technologycompany based in the U.S (Fitzgerald and et. al., 2014). It is the largest e-commerce marketplacein the world in terms of revenue and market capitalization. This report will analyse how amazonis conducting it's operations in the marketplace and the impact of various external factors on thebusiness operation. Later part of the report deals various challenges which are being faced bythe organisation in order to maintain it's position in the market.Business descriptionAmazon is a vast internet based enterprise which sells books, music, electronic toys, andmany other items. It was founded by Jeff Bezos in the year 1994 and it is situated in Seattle,Whashington. It provides web services which includes renting data storage and computingresources known as cloud computing over the internet (Fleisch, Weinberger and Wortmann,2015). It is the largest e-commerce marketplace and clod computing platform available in theworld which is measured in term of revenue and market capitalization. It is largest revenuecompany in the world. It has approx 6,13,300 number of employees working for them indifferent areas.Traditional Business Vs Digital BusinessTraditional business comprises of a local stores which offers its services or products to itslocal customers. It has a physical existence where customers visit in order to buy products.Where as Digital business uses technology in internal and external operations in order to createvalue. They provide different digital platform to their customers so that they can easily buy theirproducts and services (Hess and et. al., 2016). The similarities and difference between them canbe elaborated below:Overhead cost- Digital business models generally have lower overhead and start-upcosts as compared to the traditional business models which comprises of brick and mortarstores. In digital businesses it helps in elimination of different needs such as geographic

location, staff and utilities Where as in tradition business models their requirement is amust.Customer convenience- The growth of Digital business have provided an ease tocustomers who are looking for a convenient shopping experience. As the digital businesshave provided customer various facilities such as any time shopping, prime deliveries andonline payment system it has enhanced the overall customer experience (Iansiti andLakhani, 2014). Where as traditional businesses lack to provide all of these facilities toit's customers.Time and Accessibility- Digital business models are always open and provides anopportunity to customers to complete their transactions in a few minutes. While thetraditional methods comprised of long processes which include viewing the merchandise,taking to salesperson and waiting in the payment line. Only a limited number oftraditional business provides there services 24 hours a day.Similarities-Customer oriented- Both of the businesses are focused on attracting large number ofaudience in order to sell their product and services to them. They create product andservices in order to satisfy customer needs and wants.Twenty four hour service- there are different traditional businesses which are providingtheir services for 24 hours a day (Kaplan and et. al., 2015).Hiring and managing personnel- Both the business requires manpower in order tooperated in the business. So the they can help in different management process such assolving client problem and assisting them in the decision making process.Digital business models.In order to understand business model swot analysis is conducted below:STRENGTHStrong brand power as people recognise it byname and use it for availing discounts and lowshipping rates.Customer centric.strong background and deep pockets.WEAKNESSESShrinking margin because of price wars.Easily imitable business model.Limited penetration in developing market.Limited presence in brick and motor form.

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