Digital Business Management and Emerging Technologies - A Case Study of Sainsbury

This report analyzes the e-business models, competitive and digital business strategy, digital marketing strategies, customer traffic data, E-CRM model, and cyber security measures of Sainsbury. It also provides recommendations for improvement.

Digital Business Management and
Emerging Technologies

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Identifying the e business models:...........................................................................................3
2. Competitive and digital business strategy of Sainsbury :.....................................................4
3.Identifying the digital marketing strategies:............................................................................5
4. Discussing customer traffic data through web market intelligence platform:.......................6
5.Identifying the company E CRM model and network channels:...........................................6
6. Identifying the cyber security measures in Sainsbury: .........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Online .........................................................................................................................................9

INTRODUCTION
Digital technology is having large impact on operations of business that help to make
long term decisions for the firm. The present report is based on Sainsbury is the UK largest
supermarket that sells variety of goods such as homeware, electricals, financial services etc.
Also, the study will identify various business models and competitive strategy along with certain
suggestions for improvement in the future. Moreover, digital marketing strategies along with
customer traffic data of Sainsbury will also be identified. Lastly, certain cyber issues while
promoting goods via online platform in relation to Sainsbury will be analysed in detail.
MAIN BODY
1.Identifying the e business models:
E -business models are platforms that helps business and consumers to purchase and
sells good via online medium. There are various types of e business models such as brokerage
model, advertising model, infomediary model, merchant model, manufacturer model, affiliate
model, utility model, subscription model etc. In context of Sainsbury, Advertising model is
been used so web ads are posted on the websites. The ads that are made for targeted customers
so that they remain updated about exclusive offers, discounts and launch of new products launch
in the market (Sousa and Rocha, 2019). Sainsbury uses specialized advertisers that manage the
online advertising, serving and reporting of various products. The model work best when
volume of traffic viewer is large or is highly specialized. The Sainsbury management analysis
that which advertisement are having most success as getting clicked and viewed by most of the
customers.
Hence, using such type of advertising model by the Sainsbury there are certain
advantages that are briefly described as follows:
Cost efficiency: Online advertising model of Sainsbury is much more effective as it provides
mobile accessible services than compare with the traditional old methods that involves very
high costs that affect the revenues of the firm (Sainsbury, 2021).
Targeted campaigns: It gives much control to change the ads as it is present on webs rather
than on billboards, television that involves many difficulties for the firm.

Global reach: It allows the firm to reach large number of customer with minimum efforts along
with greater control over margins and time that is present in other modes.
There are also certain disadvantages that this model has in relation to quoted firm that is :
 The online platform is totally based on internet connection and if there is any site crash
than there would be problem for Sainsbury users to load pages and place orders in
smooth manner (Remane and et.al., 2017).
 Moreover, there is problem in this model as Sainsbury customers would not be able to
try to test various products without the physical store location and hence there is always
fear of meeting the product according to the customers expectations.
2. Competitive and digital business strategy of Sainsbury :
Competitive strategies are used by the firm to stay ahead in the competition. Moreover,
the best strategies that are used by the firm to gain competitiveness is low cost leadership to
produce goods at lower prices, product differentiation where products are differentiated from
one another, focusing on niche markets on increase revenue and developing customer loyalty.
The one that is used by Sainsbury is cost leadership strategy so that it can gain
competitive advantage over other rivalries in the markets. This is done through using efficient
value chain. Moreover, this strategy helps the firm to target middle class where chances of
sales are maximum (Tesch and Brillinger , 2017). Sainsbury offers various discounts and
coupons so that maximum benefits can be given to its target customers.
In regard to digital strategies there are various types that are used by the business firm
to achieve the desired goals in specific time period. Using the Ans-off matrix it can be said that
quoted firm can either use market development strategies, diversification strategies, market
penetration strategies and product development strategies to grow in digital world (Chaffey and
et.al., 2019). The one that is used by quoted firm is market development strategy so that it can
enter into new geographic markets and target new customers so that specific needs and demands
of that group can be easily met in certain period.
Recommendation :
From the above competitive strategy that is used by quoted firm it can be suggested that
it can also use product differentiation strategy so that variety of goods can be made available to
the customers and will also help to stay ahead in the competition among other competitors such
as Tesco and marks and Spencer in UK (Kreutzer, Neugebauer and Pattloch , 2017). Moreover,

in context of digital strategies the firm can also go for market penetration strategy so that it can
compete more effectively online and migrate existing customers to online medium.
3.Identifying the digital marketing strategies:
There are various digital marketing strategies that can be used by the firm to sell the products
successfully through online media channels. Some of them includes :
 Affiliate marketing where company products are marketed through another person in
return of certain commission for the services offered. The responsibility of promoting
the product and sharing product information is done by the affiliate.
 Social media marketing is done when the company needs to reach large number of
audiences in limited time period so that maximum revenues can be generated.
 Mobile marketing where the products are sold on mobile devices and is meant for on
the go strategy (Haffke , Kalgovas and Benlian , 2017).
 Viral marketing that encourages one individual to share information related to any
product to other people so that growth of the firm can be ensured.
 Pay per click model that is type of internet marketing in which advertisers pay each time
when one of their ad is clicked.
All the digital marketing strategies can be applied successfully by the firm when
effective marketing mix is developed by the firm. Moreover, such mix can be made only when
management is highly qualified and is clear about its vision and goals.
Suggestions:
From the above digital strategies the one that is suggested to the quoted firm is that
mobile marketing and social media marketing can be easily done through the website of
Sainsbury (Freitas Junior and et.al., 2017). Further, use of mobile devices is very common in
today's era and hence more people can get in touch with company new products and offers.
Also, social media marketing can be improved by Sainsbury by using attractive colours,
background and images so that more people are attracted towards the creative website.

4. Discussing customer traffic data through web market intelligence platform:
From the above graph of Sainsbury taken from website similarweb.com it can be said
that total visits on the site of customers is 22.25 million. Moreover, it can be seen that bounce
rate is 40.37% that means that more customers visited the website page but instead of further
continuing they have left the page (Official measure of world, 2021). Further, average visits
duration is 00:05:46 as per the customers. Also, pages per visit shows 12.58 and in detailed it
is that 83.74% of top five organic keywords were used to reach the site of Sainsbury.
Recommendations:
From the above data of Sainsbury it can be recommended to the firm that due to
effective marketing plan the firm has strong customer base in different parts of the world.
Hence, as a result of it large number of customers look for Sainsbury website every day but in
spite of this Sainsbury website bounce rate is higher and thus quoted firm need to look into
developing the website in more effective manner so that it is more appealing to its target
customers and hence they do not find it boring and unattractive to search products and services
on regular basis (Abdelaal and et.al., 2018).
Further, the traffic of the company should not be across one social media platform such
as you tube rather it should be across various other medium such as twitter, Instagram, Facebook
etc. so that greater reach can be ensured. Also, the firm need to avoid similarity in websites from
rest other competitors so that better customer experience can be given.

5.Identifying the company E CRM model and network channels:
E CRM model helps in developing strategic process so that customer loyalty can be
achieved in effective manner. It consists of service, orders, analyses, marketing, strategy,
sales, and support activities that helps the firm to achieve success in short period of time. There
are various types of CRM models that can be applied by the firm such as IDIC model, QCI
Model, Payne five forces model and value chain that helps to achieve the overall objectives of
the firm (Ananyin and et.al., 2018). By using the Payne model the quoted firm is able to
develop strategy, create value and integrate various business activities across its departments.
Moreover, performance assessment can be done on much better level.
Recommendations:
From the above E -CRM models it can be suggested to quoted firm that the firm can
use value chain model to create and analyses value output that is given by each department so
that better output can be produced in the future. Moreover, with the use of this model the firm
can also identify the best value creating department so that those who are less efficient can be
focused more efficiently by the firm and better revenues can be generated in the future by the
firm.
6. Identifying the cyber security measures in Sainsbury:
Cyber security is very important to ensure that website is not illegally used by any third
party so that ownership and value of information along with authenticity of data that is on
websites can be maintained. Moreover, information can be accessed by the individual only when
certain rights are been given to only certain people. Further, in Sainsbury it has been ensured
that data is secure and accurate to the customers (Weill and Woerner , 2018). Moreover, the
firm has ensured business ethics by ensuring customers that data collected on websites is only
for gathering relevant information and thus there would not be any misuse of personal data.
Also, individual consent is asked in websites so that there are no future problems for the firm.
Quoted firm uses cookies so that better customer experience can be given through
giving only relevant options. It also takes care of spams and virus by ensuring that websites are
safe and secure to use. Moreover, to avoid disclosure of data the firm has excessive security
measures over its websites.
Recommendation:

It is to be suggested to the quoted firm that though effective measures are developed on
the websites of the firm to ensure security but it can urge its users to change there passwords
after a given period so that hackers are not able to invade into account of users (Blaschke ,
Cigaina , Riss and Shoshan , 2017). Moreover, a secure payment gateway can be established by
the firm to assure its users that no private information could be easily leaked or misused by any
of its users. Further, on timely manner risk assessment should be done by the Sainsbury to ensure
that thee are no current and future threats in operations of the business.
CONCLUSION
From the above report it can be summarized that Sainsbury is the largest chain of
supermarket that has effective use e business models to enhance its operations. Moreover, the
report had analysed quoted firm competitive strategy and digital business strategy that helped
the firm to expand its business. Also, various digital marketing strategies and customer traffic
data had been discussed with certain recommendations so that improvement can be done.
Lastly, E CRM model of firm with the major cyber security issues that had faced by Sainsbury
had been discussed in detail.

REFERENCES
Books and Journals
Abdelaal, M. H. I. and et.al., 2018. Digital business transformation and strategy: What do we
know so far?. University of Cambridge.
Ananyin, V. I. and et.al., 2018. Digital organization: Transformation into the new
reality. Бизнес-информатика. (2 (44) eng).
Blaschke, M., Cigaina, M., Riss, U. V. and Shoshan, I., 2017. Designing business models for the
digital economy. In Shaping the digital enterprise (pp. 121-136). Springer, Cham.
Chaffey, D., and et.al., 2019. Digital business and e-commerce management. Pearson UK.
Freitas Junior and et.al., 2017. Digital capabilities as key to digital business performance.
Haffke, I., Kalgovas, B. and Benlian, A., 2017. The transformative role of bimodal IT in an era
of digital business.
Kreutzer, R. T., Neugebauer, T. and Pattloch, A., 2017. Digital business leadership. Digital
Transformation–Geschäftsmodell-Innovation–agileOrganisation–Change-Management.
Remane, G. and et.al., 2017. Discovering digital business models in traditional
industries. Journal of Business Strategy.
Sousa, M. J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research. 94. pp.257-263.
Tesch, J. and Brillinger, A., 2017. The evaluation aspect of digital business model innovation: a
literature review on tools and methodologies.
Weill, P. and Woerner, S. L., 2018. Is your company ready for a digital future?. MIT Sloan
Management Review. 59(2). pp.21-25.
Online
Official measure of world. 2021. [Online]. Available through: <https://www.similarweb.com/>.
Sainsbury. 2021.[Online]. Available through: <https://www.sainsburys.co.uk/>.