Digital Business: Growth, Factors, and Impact on Operations

This document discusses the concept of digital business, focusing on the growth, key factors, and impact on operations. It explores the differences between traditional and digital business models, market segmentation, and the external forces affecting digital businesses. The case study of Netflix is used to illustrate these concepts.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Brief description of the business, their mode of operation, the market segment etc. ...........4
explanation of the key factors which may have been responsible for the growth of your
selected digital business.........................................................................................................8
Identify and explain how these external forces may impact on the businesses operation ....9
CONCLUSION .............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Digital business is a creation of new business which creates values in business models
customers experiences and internal capabilities that supports their core operations. Digital
business creates competitive edges based on unique combinations of digital and physical
resources. These offers things that others cannot and in which that builds comparative advantage.
Digital business mainly carries out with the help of internet source as it is conducted as online. In
which the following report is base on Netflix that carries out digital business. It used
technologies in order to manage an inventory systems and mail peoples DVDs and provides as
experiences that are more convenient (Cho, Bonn, and Brymer, 2017). It is basically a
subscription based streaming services that permits consumers to watch TV shows without
commercial on an internet connected devices. It provides options to customers for streaming
video on demands. It disrupted itself and transformed the way that individuals view films and TV
media. This report is going to covered understanding about digital business, differences between
digital and traditional and factors by which digital business is up taking by companies.
Additionally modes of operation, factors which affects digital business.
Differences between traditional business and digital business:
Traditional business includes exchanges of goods and services between two peoples by
face to face whereas digital business is carried out online basis with the help of electric network.
It supports transactions and communications via use of electronic communications. It includes
all trading activities related to supply, buy and payments over internet.
Basis Traditional Digital
Meaning It comprises to become a
branch of trading which focus
on exchanges of goods &
services. It is a one way
process. In this the business
relationship between consumers
and marketers is linear.
It refers to execution of
transactions or exchanges of
data on internet. This is one
on one process. Whereas, in
this the business relationship
is end to end.
Accessibility Traditional is limited to assess. It is unlimited to assess and
can be anytime (Dolnicar,

Grün, and Leisch, 2018). It is
available 24/7
Scope It is restricted to a definite
areas.
The scope of this thorough
the globe.
Factors that facilities to uptake digital business in recent time
Consumer demand:The main objective of any company is to withstand with harsh
condition of market and full fill the requirements of consumers. For instance after covid-19 most
of consumers prefers online shopping instead of offline as in offline mode gathering of peoples
occurs and this need to be avoided. In context of chosen business, Netflix, consumers can enjoy
at their home or anywhere by watching latest launched movie or TV series by taking subscription
of Netflix. In this consumers do not have to go anywhere.
Innovative technologies: It leads to geotechnical disputes which are valuable for firm in
which they plan to capture the whole respective market. For instance the cloud system that is
being adopted by numerous MNCs in order to flourish a competitive edge. In relevance to this,
consumer can order any thing by their home only tit is not necessary to go anywhere. Consumers
can easily transfer money with online payments process and can order any product online which
is available. After covid-19 most of the cinema are closed and due to this, movies are releasing
on Netflix, Amazon prime and so on.
Brief description of the business, their mode of operation, the market segment etc.
As business is the huge system of processes who's objective is to plane, produce and
serve the service or product in exchange of money to earn the profit mergein. Smiler to this
digital business is the huge field consist of the multiple operational method's to serve the product
and service to their product but it is different from other business in prospect of serving process.
As it involves the seal of the products through online networking and online presentation of their
products (Komninos, 2016). This involve different mode of operation in comparison to the
normal business methods , because customers visit for services online, select the services online,
apply for it online, and then get it finally in hand. The brief discussion on mode of the Digital
Business operation is given below.

Mode of the digital business operation
Development of the app and website: For online businesses it is important to first make
the online website and app for providing the services portfolio along with its detailed
information, related to price, offers and verity. And this should be easy for customer to go with
it to find out their desired services. Website and app should be attractive, informative and ewasy
to access. Netflix have the best app structure, which provide the brief information of different
service in well segmented manner, along with the services effective view, which satisfy the
customer.
Development of Services: This is another important operational step, purpose is to
develop the services on the basis of customers interest. Which can satisfy them and justify their
investment. It include market research, then development of the ideas, then development of the
content or services, then review and finally presentation of the services (Komninos, 2016).

Netflix is one of the best online services provide, who serves the interesting and innovative
videos, web series and movies services on the basis of customers demand.
marketing of the services: The other operational part of the digital business is the
promotion of the services throughout the target customers with aid of different promotional
activities. It can involve social medial marketing, digital marketing, blogs, posters, magazine and
news paper adds. Netflix is hiving the brand value and it get promoted by mouth to mouth
process by the customers conversation. But from their side they promote their services through
social medial marketing with the aid of small video clip add in the sites of social medial, digital
marketing by promoting the trailers into different apps, online services such as You tube, google.
SEO: This is the techniques which can be use by company to improve their website
traffic or customers engagement on that site. So for better online business operation it is
essential to conduct SEO (search engine optimization) which involves the analysis of online
reviews, visitors comments, their preference and then the updating of things according to that.
Netflix is having best traffic on their website and reviews as it provide the services by analysing
their customers reviews.
SMO: This is another operational method use to for increasing the services awareness
the, Which involves the management of company outlast or social media page with all the
necessary content to increase the customers awareness about the product and service (Kraus
Palmer,, Kailer 2018). Along with this company can take feedbacks of their customers for their
requirements and improvement. Netflix they have their social media group and got the millions
of likes and comments.
market segmentation
Is the techniques which aid to well distributed the target market and assets in to the same
smaller category's. And the process of increasing business by targetting the different customer's
group on the basis of specific characteristics. Such as on the basis of demography, Geography,
behaviour, psycho-graphic, discussion on this is given below.

Geographical: This involves the division of services in the basis of country, region,
community. In this terms company should segment their market into different category's on the
basis of these factors, such as targeting the India and America to serve both country for more
profit. Netflix is targetting different country's for their business segmentation, such as they are
providing Indian programmes, as well as UK TV programmes, web series of both country
(Sousa and Rocha, 2019).
Demography: This is another step of business segmentation which should be done on the
basis of demographic factors such as age, gender, religions etc. organisation can make their
service on by targeting the particular age group or either targeting the particular gender to

segment their business. As Netflix provide the facility's of adult group programmes, children's
shows, Women's specific programmes, and religious shows of different community's.
Psycho-graphic: This involves the segmentation of business on the basis of customers
budget, activity's, values etc. Netflix is segmented their business on the basis of different activity
of the country such as sports, news etc. (Nadeem, Abedin, Cerpa, 2018).
Behavioural: This involves the targeting the factors like Hobbies, habits for the
segmentation of their business. As Netflix is targeting the customers hobbies and provide then
shows related to that.
explanation of the key factors which may have been responsible for the growth of your selected
digital business
Digital marketing depend on the customer's, networking, online facility's, the growth and
awareness of the customers in the digital field. It involves multiple factors in their businesses
which improvement aid to increase the growth of digital businesses. The detail discussion is
given below.
Growth of cities: Now a days cities are developing in terms of education,employment
and trend and self satisfactory, self comfort. And this give the opportunities to the digital
businesses to offer their service to customer's in order to increase their growth and satisfy
consumers.
Growth of mobile commerce: The increased use of mobile and internet in the
developing cities is the growth factors of online businesses. Because its way to offer the service
and reach the customer's, for digital organisation its core asset of business. Their are the
continues development of mobile demands and internet demand which is the indirect promoter of
the online businesses. Netflix have to improve their subscription charges strategies in order to
target all mobile users.
Cashless transaction facility's: Because of the busy schedules of work and personal life
no one want to go out for the bile payment and services purchase they just want easy way to get
all those facility's in their door steps, cashless transaction facility's aid to pay bill online such
and in that way it makes way for the growth of online business. Along with the use of combine
online services (Nikolaev, 2018). For Netflix this is the growth factor because it facilitate their
services more effective.

Internet offers and plans: Now a days network or internet is very important part of the
peoples life and this factors facilitate for the digital business opportunities. And the internet pack
offers facility's increasing the needs of customers for online content and in this way it crates
the growth and development opportunities for digital businesses. Netflix is highly use by the
customer's for their quality time and net spending.
collaboration with networking company's: This is the best factor which aid to increase
the growth of the businesses and this involves the collaboration of digital business company's to
their company in order to promote and offer their product. For example the online entertainment
services business can merge themselves with the networking company such as Airtel, and other,
they offers the services or a free subscription of digital businesses in order to benefit each other.
As Netflix is collaborated with Airtel and offer their free subscription through which they
promote themselves and increases the growth.
Growing demands of the customer's for online service: Due to the busy life no one
have time to go for cinema or for Movies outside and they want to have those facility's in their
own house, and this factor create the chances for the online services. Netflix grab this
opportunity and offer them all the required services online to their customers.
Identify and explain how these external forces may impact on the businesses operation
Their are the multiple external factors which can effects the productivity, growth and
success of the digital businesses. And for the analysis of external factors effect it needs to use
analytical tool such as PESTEL analysis.
PESTEL analysis is a very effective and helpful tool for the analysis of external factors
effects and stability in terms of businesses organisations. It known as a political, economical,
social, technological, environmental and legal factor analysis process. Their is the brief
explanation of external environment analysis in context digital businesses such as Netflix is
given below (Nwaiwu, 2018).
Political: This involves the elements like political issues, in terms of business and rules.
Which can not be change by company so they have to run according to to it. There are many
political pressure on the brand which created them the problem in running the brand smoothly.
Economical: In this current situation of COVID, the economy of the country is very low
which created the loss in the number of subscriber due to lower income of the people. Using the
Netflix requires the subscription which charges some minimum cost which is required to pay by

the viewers who want to view it and having the economy down there can seen in the decrease in
the customer of Netflix.
Social: Netflix have done many social work which makes the brand awareness of it
which can help in creating more customer which helps in the making the profit higher. There are
many social factor which are full filled by it which can help the society by providing different
types of content which is having the better quality.
Technological: There are update in the technology which is used by the Netflix which
are able to attract the customer which can help in growing the customer base ( Pan, Chen and
Zhan, W., 2019). By using the new technology the work and the access of the website is well
which creates the trust in the mind of the customer.
Environment: In context to the environment any one is able to see that there is no harm
from this brand which are also waking up the customer to improve the environment which is one
of the best work which the Netflix is doing for the environment. Recently, Netflix has donated
some funds which can be use in improving the environment of the country as well as world.
Legal: There are many legal formality which Netflix need to follow for maintain their
costumer base which is related with the law(Papadopoulos, T., Baltas 2020). They are also
following the policy which are created by the government which gives them the guidelines about
telecast the shows and movies on their platform which is related with each and every content.
CONCLUSION
From above discussed report its can be concluded that there are various modes of digital
business by which a company can carried its operations successfully with the help some modes
such as SEO, SME, PPO, designing of web etc. in which the targeted market segments of
consumers are on the basis of behavioural and demographical as the selected firm is Netflix so
they mainly targets those consumers who are using smartphones or any other digital gadget.
Moreover, the factors which are main responsible for the growth of digital marketing are cash
less transaction facilities, growth of cell phones users and so on aid firm to increase revenue and
sales of company. Key issues that may be arises in digital business could be that some time
transition got failed due to network problem as well as delivery of products is not instantly. As
well as the increment in competition is another main problem that are being faced by Netflix
business operators. Also the rising cost of content that are presented or show on Netflix is
another key issue which hurdle the business operation.

REFERENCE
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