Importance of Digital Business in the Business Sector

This presentation explores the importance of digital business in the business sector, focusing on the impact on online organizations. It discusses digital marketing principles and strategies used by successful online organizations. It also compares online and traditional competitors and their advantages/disadvantages to an online organization.

Digital business

INTRODUCTION
Internet has always been the integral part of business
which expand the market sector at wider scale. Main aim
of this report is to understand the importance of digital
business in business sector. E bay, a largest corporation of
e-commerce headquartered in U.S. Firm deals in online
products and services such as household appliances,
apparels, cosmetics etc.

TASK 1
Provide a overview of selected online organization
eBay, an American multinational corporation
which deals at online marketplace, headquartered
in U.S. It is deals in ample number of products and
services such as consumer electronics, home
appliances, cosmetics etc. It is mostly operates its
business from online websites
http://www.ebay.com/

Unique Selling Points (USP) and compare to
their market competitors.
USP- It is also known as unique selling points
which refers to process by which products, services
or brand is unique from their competitors. It is
essential to be aware about the USP of an
organisation so that strategies & tactics are
adopted accordingly. The USP of eBay is that it
deals online auctions and transactions by securing
the users details in most secured way

Comparison
BASIS E- Bid eBay
Advantages USP
Main benefit of this is
that there is high traffic
on websites due to no
extra charge of fees.
(Henthorne, 2016).
n this advantage is that
customers find it easy
as because there is
Good Til Cancelled in
which managed stores
automatically.
Disadvantages
of unique
selling price
Drawback is that
customers find it
difficult to manage
their stored
products.
Limitation is that
charges of fixed price
& GTC listings are
quite high (Kahre,
2017).

digital marketing principles and Online Organizations marketing strategy
Digital marketing is the most hub concept of business now a days. With
changing period of time, all firms have gone to digitalis. Digital
marinating refers to way or process of access or reaching to consumers by
use of social or digital channels. In this competitive era, most of the
companies are doing their business through use of digital marketing. In
reference with eBay, they are online businesses platform organization
which have been a achieving success globally. Also, they have been using
marketing strategy for their business in with changing period of time.

Principles of digital marketing
Initiate-
It is being considered a first principle of digital marketing in which it states that
customers are base of business without which products or services cannot be
traded. It is important to make assure about customers of a company so that
analysis is done properly. So, eBay use this principle in business because by
focusing on this they are able to identify & analyse their customers who are
potential (Kurnianti, 2019)
Iterate-
It is another principle which is used by eBay in their digital marketing in which it
reflects that though this it is possible to analyse & emphasis on customers activity
which assist in improving the effectiveness of digital marketing campaign. By
examining behaviour of customers regularly, it is easy to make decisions
regarding strategy.

Integrate-
Then at last one is integrate in which it states and focuses on making/
using of all digital channels to achieve a better outcome. By integrating all
channels, it is easy to use marketing strategies in effective manner. It
might involve online or offline marketing or both depending upon firm
requirements. For example- eBay uses mostly online marketing to boost
their business activities (Trotman, 2017).

Online organization marketing
strategy
Marketing strategy is essential part of enterprise
which is needed to be used to improve the business
practices & growth in market. Marketing strategy
of business are different & are used accordingly
depending upon basis of a company. These are
defined as set of actions used to achieve objectives
within a period of time.

Establishing a larger user base-
It is first strategy in which eBay focuses on attracting of more new users
at larger scale. To effectively use this, eBay build a strong relationship
between various 60 websites even including American online which assist
company a larger base to run their activities & operations.
Concentration on local & international trading-
In context of eBay, they have large number of local websites across the
globe through which they were able to access all new opportunities &
customers. They have successfully built a true global presence of entity
amongst the users more than din 150 countries (Henthorne, 2016). With
this strategy, it is easier for them top be aware about market change,
customers needs at all aspects.

Growth engines
Viral engines-
These are those engines in which less amount of money is spend on promotion as
well as advertising. These growth engines includes of different types such as
inherent, artificial, and word of mouth. In relevance with eBay, they uses this
engines as it help them to promote their brand when there is need of urgency with
less amount (Kingsnorth, 2019).
Paid engines-
In this, promotion & advertising of product is done by spending amount of money
at larger scale. This growth engine is mostly used as it help in creating promotion
at all aspects of promotional tools. With this, engine, it is easy and beneficial for
entity to enhance their business recognition in most efficient manner. It is quite
expensive approach of promotion but is used at wider scale.

TASK 2
digital marketing campaign for selected online organisation
Defining business- The first aspect of creating digital
marketing campaign is to define a business criteria and aims
in which market analysis, competitors, and objectives are
clearly defined. In this, eBay main defined its business as a
online marketplace for doing auctions and trading.
Choose KPI to measure- In this, after defining goals of
campaigns it is crucial to track progress for performance of
campaign. It is important to measure KPI so that goals or
objectives measurement is done properly.

Budget- Then another important step in campaign is to decide a
budget for a business as eBay is expanding their activities at wider
scale they need to prepare a budget for resource allocation,
requirements of assets, distribution strategy etc. Without a budget,
it is not possible for them to implement or initiate a campaign.
Content development- In this step, main focus is on awareness of a
product, engagement of customers at all aspects. In digital
marketing campaign, it is necessary to be aware about the content of
a products and services so that it is easy to attract attract customers
attraction. So, content development is crucial to be focused so that
reader get interest in reading about company profile and
products portfolio.

Analysis of competitors strategy- Then, it analysis of competitor
strategy is needed to be done so that alternatives are prepared. For
example- E Bid is competitor of eBay and they uses Paid growth
engines with diversification strategy. By review of this, eBay can
improve their marketing strategy in innovative way (Goralski,
2017).
Target audience & Measure/ convert traffic- In this, the potential
target audience is being chosen by company. Then, traffic is
measured by various approaches such as PPC, SEO, Google
analytics, which are used to measure the landing of traffic on
website.

Measure results- At last, results which of undertaken steps are
measures so that effectiveness of digital marketing campaign is
known in proper way. It is important to measure results so that
recertification is done accordingly.

TASK 3
Question 1: Explain 2 key differences between Online and Traditional (Brick and
Mortar) competitors. What are their advantages/ disadvantages to an Online
Organisation?
Traditional competitors (Bricks & Mortar)
These are those who are to be known as traditional street
side business in market.
Online competitors
These are those who used to do business via internet and
websites (Goldman, 2019).

Online competitors
The change in online business is rising rapidly with
advance of use of AI.
Traditional competitors (Bricks & Mortar)
Change in these competitors is slow as they have
initiation use technology in their business with
limited use.

Advantages- Online competitors-
Access to new opportunities- The online competitors are
much beneficial as they can access to new opportunities at
global level.
Disadvantage-
Expensive- Another disadvantage is that carrying out
activities online is quite expansive which leads to affecting
the organisational structure.

Bricks & Mortar- Advantages-
Does not require technical skills- Main benefit of this is
that it does not require any additional skills to do business
such as technical skills is required in online business.
Disadvantages-
Inconvenience in reaching to customers- Main
drawback is that it is difficult to access large number of
customers because of less availability of resources
(Wollenburg, 2018).

Question 2: Provide an example of another Online Organisation who failed to achieve growth
in its Online Business using its Digital Marketing Campaign and explain why it failed.
E bid failed to achieve growth through using digital
marketing campaigns because of their less use of
advanced skills and knowledge in business. Main
rationale for failing of their business is that it was unable
to capture or identify the target customers & did not
provide them with consistent any feature. They uses
digital marketing campaign but were unable to provide
total satisfaction to customers because of their old
techniques and poor management system (Amankwah-
Amoah, 2018).

 CONCLUSION
After a brief analysis of report, it is seen that digital
business sis growing with rapid scale. SO, discussions
have been made about overview of firm, digital
marketing principles and strategy, growth engines and
comparison between tradition and online competitors
have been discussed briefly. Also, their impact on
online organization is explained at depth. Thus, it is
examined that the era of competition has broaden thee
use of internet.

REFERENECES
Books & Journal:
Kahre, 2017, January. Beyond business-IT alignment-digital business strategies
as a paradigmatic shift: a review and research agenda. InProceedings of the 50th
Hawaii International Conference on System Sciences.
Trotman, 2017, August. The Architecture of eBay Search. In eCOM@ SIGIR.
Henthorne, 2016. Unique selling propositions and destination branding: A
longitudinal perspective on the Caribbean tourism in transition.Turizam:
međunarodni znanstveno-stručni časopis,64(3), pp.261-275.
Kurnianti, 2019, November. Improving The Ease of Digital Marketing Learning
Using Mobile Learning. InJournal of Physics: Conference Series (Vol. 1381, No.
1, p. 012026). IOP Publishing.
Kingsnorth, 2019.Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.