Digital Business: Advantages, Disadvantages, and Applications in Marks and Spencer

This report discusses the meaning of digital business and its advantages and disadvantages. It explores the applications of digital business in Marks and Spencer and the new emerging trends in the industry. The report also examines the impact of new collaborative relationships and strategic alliances in digital business. Additionally, it covers the principles of e-commerce and their application in Marks and Spencer.

DIGITAL BUSINESS

EXECUTIVE SUMMARY
The report shows digital business and there advantage and disadvantage of digital business that is
being shown through marks and Spencer faced in there digital business. There applications of
using digital business to attract customers and fulfil the needs of market. Further, shows that new
emerging digital business models which are used by Marks and Spencer to lead marketing
company is operating. Also, their key business issues that are faced by Marks and Spencer in
cyber security and ethics of business that need to be followed. Emerging digital business are the
growing rapidly, collaborative relationship and there strategic alliance followed with some
advantage and disadvantage which are faced by company during making of strategies. Lastly it
shows the meaning of e-commerce and their principle that are used by Marks and Spencer.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Digital business and there advantage and disadvantage..............................................................4
1.1 Meaning of digital Business...................................................................................................4
1.2 Advantages of Digital Business............................................................................................4
1.3 Disadvantage of Digital Business..........................................................................................5
1.4. Application on Marks and Spencer.......................................................................................6
2. New emerging trending business.................................................................................................6
2.1 Defining new, emerging trending model...............................................................................6
2.2 Discussion new, emerging trending model............................................................................6
2.3 Application of business model on Marks and Spencer..........................................................8
3. Impact of New collaborative relationship and strategic alliance.................................................8
3.1 Definition of new collaborative relationship and strategic alliance.......................................8
3.2 Advantages and disadvantages of new collaborative relationships and strategic alliances
through digital technology...........................................................................................................8
3.3 Application on Marks and Spencer......................................................................................10
4. E-commerce and principles........................................................................................................10
4.1 Definition of E-commerce...................................................................................................10
4.2 Principle of e-commerce......................................................................................................10
4.3 Application of e-commerce on Marks and Spencer.............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Digital business are those business which uses technology to create new value of business
model, experiencing innovative ideas that support its core operation. Business transforming into
digital business by using digital technology to operate in market. Mark and Spencer is one of the
leading brand in fashion industry and other segment like retail and home products operating
since 1884. In this report, it shows digital business of Marks and Spencer and there advantage
and disadvantage of digital business and there applications of using digital business (Luz Martín‐
Peña, Díaz‐Garrido, and Sánchez‐López, 2018). Further, shows that new emerging digital
business models and their key business issues that are facing by business in cyber security and
ethics of business. Emerging digital business are the growing rapidly, collaborative relationship
and there strategic alliance with some advantage and disadvantage. Lastly it shows the meaning
of e-commerce and their principle that are used by chosen company.
MAIN BODY.
1. Digital business and there advantage and disadvantage.
1.1 Meaning of digital Business.
Digital Business is a business that are operating major of business through using digital
technology. Marks and Spencer is using the digital technology through very early stages from
when they are modern marketing is introduced. Marks and Spencer is a Clothing and accessories
company are offering new collection through their website and Apps which are used to purchase.
The technology used by company is to reach wider market and improve the customer
experiences through using the website (Wirtz, 2019)
. It attracts more of customers towards company that increase the market share of company.
Nowadays, almost all the business industries are adopted the technology that are using digital
business techniques through website, apps and marketing. However, digital marketing is one of
the major tool that is used by company to promote their brand name and their products offering
to customers. It aids company to reduce the cost of operation and earn high of revenue through
their online purchasing (Jalali, 2017).
Digital business have their own advantage and disadvantage of using in their operation.

1.2 Advantages of Digital Business Enhance data collection: The data that is collected from the online source of customers
in very large number that help organization that help to optimize the data according to
customers demand and their behaviour can be analysed by company. It transforms the
raw data into insight across various touchpoint. Great resource management: Digital transformation merge resources and information
into a suite of tool for business. It connects all resource in one place that help company to
know better experience in using the data more efficiently (ingh, Gaur, and Agarwal,
2017). Data is being centralized through technology in company and can be used to know
each detail from anywhere. Improvise the customer experience: customers expectation are very high towards the
company. Customers want best clothing products in low price and fast delivery.
Companies are using innovative ideas to provide new experiencing to customers and is
the key driver for sustainable growth of company.
 Increase profit: Company that adopt digital transformation improve the efficiency and
probability. Almost more than 80% of business increase there profit that through digital
transformation. It also increases the market share of company as it help to operate in
wider market.
1.3 Disadvantage of Digital Business Dynamic technology: The technology is very dynamic in nature and changes with time.
It affects the company operation and need to update with time and increase the cost of
company. Company need to uses the latest technology in order to lead market and to
attract the customer. Security and privacy issue: One of the major issues for company is privacy and security
issue of customers. Government interfere is very high towards company to protect
customer data. However, customer also fear about the data leakage through data collected
by website and apps (Ismail, Khater, and Zaki, 2017). Worldwide competition: As the digital transformation is one of major trend in
worldwide. Companies faced many competitions toward each other and attract customer
through new experiences by different companies. However, competition is very high to
gain the competitor advantage.

 Dependencies on technology: Digital transformation business are fully dependent on the
technology. If, technology changes it directly affects the whole company and need to
change according to technology. It also impacts operation of company and competitor
can take advantage (Iljashenko, Bagaeva, and Levina, 2019)
1.4. Application on Marks and Spencer.
Marks and Spencer is operating in the online clothing in many countries. The digital
transformation of company help to increase the revenue, sales and increase the market share
from globally. Marks and Spencer had is also planing to close many of store and more focusing
on the online selling of product through website and app.
2. New emerging trending business.
2.1 Defining new, emerging trending model
The new and emerging models are business models which are used in glob by business
in order to earn more income and growth of company. These trends are more in demanded by
customer and in market and in order to meet the customer demand and experience the innovative
product or service. These are the topic of areas that is growing interest rapidly and utility over
time. New trends are identified by companies that allow company to analyse and help company
to grow their market share with high volume.
2.2 Discussion new, emerging trending model
The new emerging trends that are new in market and used by many firms. These models
are: Freemium Model: One of the most used model that is emerging in market. These model
shows that customers are receiving a product or service for free of cost. The basic
function and premium offers are offered, after expiring of free service, the customer
must then pay to use the service (Boojihawon, and Ngoasong, 2018). These model
increase the broad customer reach, scale of business and generating income from paying
customers. These are applicable on product or service having low margin values. For
example: Spotify, canvas, Mail chimp which is using the freemium Model to generate
income and maintain the customer for longer term. Free offering: This model has gained popularity in market especially from google. New
entrepreneurs it is most incomprehensible business model and have high potential for
service industry. Organization evaluates the customer data and offer through

Advertisement and personalized offer to convert the lead. For example: Google and
Facebook are the main organizations that are used by them to offer the product on
personalize basis. These are done through data analysis of data and that individual target
customer in order to attract more customer. However, Google main source of earning is
through advertising only that are generated from various small industries and offer there
products and service according to their nature of customer data (Schwertner, 2017) Sharing Economy — Access-over-ownership Model-renting & leasing: This model is
also one of the emerging trend that is being used by most of the company and new
entrepreneur. Here sharing economy means letting of goods or service that is being lent
for use or purchase by another person for limited time period. Products include letting
Car on rent for few days. For example: Airbnb and Lyft. Where, Airbnb provide house
rent for few days to customers who can use houses and apartment/flat at time of
travelling. There growth is majorly in recent years when most of the customers wants
personal house or apartment/flat at a time of travelling. Ecosystem- creating own ecosystem: To bind market customer to an ecosystem for long
term is one of the major target that is being used by every entrepreneur. It binds customer
towards company to use by product or service for longer term and gain market
competitor. For example: Apple created its own software and process that bind customer
for longer term to use that product and gained competitor advantage in market. It also
creates the loyal customer and enhance the experience of using product. Apple create
customer habit to use such type of interface on their mobile and laptop that enhance
customer to increase the customer loyalty and growth of company (Boojihawon, and
Ngoasong, 2018)
 Subscription model: Companies which are well-established and had established there
market base in market uses this business model mostly. This model shows that products
and service can usually offer as subscription basis. The main aim of this model to bind
customer for long term. For the purchase of product or service, customers are provided
with benefits from improvement and their extensive of service by company. Moreover,
non-divisible product can also be converted into subscription model. For example:
Amazon, through subscription of Amazon which provide with the system how products

are delivered to customer place. It allows company to increase the revenue from market
growth over the time purchase without any high and low of business.
 Marketplace Model: Some of the industry uses marketplace where high disruptive
potential is having. The business uses digital marketplace to connect companies by
customer for selling and purchasing of goods and service on conman platform. For
example: Amazon and Marks and Spencer (Sousa, and Rocha, 2019)
2.3 Application of business model on Marks and Spencer
Marks and Spencer is using market place model where they directly connect with
customer to sell the products online. It helps company to reduce the cost of distribution channel
and breakage fees that increase the profit margin on various products. The customer market is
very wide and having a disruptive potential in market. Marks and Spencer competitor are also
using the same model to gain the competitor advantage but most attractive offers can attract the
customers towards company.
3. Impact of New collaborative relationship and strategic alliance.
3.1 Definition of new collaborative relationship and strategic alliance.
Collaborative Relationship refers to two or more people work together in order to achieve
the company's objective. It is become a preferred solution to work in a different individual
having different point of view in a company. Thus, it is a complex process that sometime forces
people to listen and connect with each other in a different manner from regular basis.
Collaborative relationship is an essential part for company to increase employee trust and loyal
towards company and aid to achieve the company's objective.
Strategic Alliance is an arrangement between two companies to undertake a mutual
beneficial project having independence to each one. This is an arrangement which is less
complex and less binding to companies as joint venture does. Here separate entity of each
business is created by companies. This alliance is made to expand each market, improve its
product line and to develop edge over its competitor. This agreement are short or long term
according the objective of both companies (Beuren, and et.al., 2019).
3.2 Advantages and disadvantages of new collaborative relationships and strategic alliances
through digital technology.
Some of the Advantages are:

 It provides better division to workers: When there is collaborative structure within the
workplace then it improves the methods of work division. Having more people for
completion of task is easier for company to comp-let it more effectively. These are
mainly important for those people who are more involvement in large project. Improve morale within workplace: the collaborative structure is one of the positive
method that improve the morale of employees within workplace. It also increases the
loyalty towards company to perform. The recognition of success of employee and
increase the motivation of each employee to perform effectively (Russo, M. and
Cesarani, M., 2017) Higher creative input: when collaboration is permitted to workplace, it involves more
creativity of employee in projects. Company is able to tap on different resource of each
employee instead of relying on single input resource. It creates new ideas and new
approaches can be brainstormed and lead to greater innovation in workplace. Corporate relationship are often improved: It increases the relationship between the
companies. Both companies receive some benefits for their efforts and improved the
standing in industry. It further helps for fundraising, better product and branding
influence.
Some of the Disadvantage are: Own risk of strategic alliance: Strategic alliance bring own risk in business operation as
they are working with different company which have different understanding, working
style, understanding and culture of work. It brings out with risk in order to complete the
task. This risk are also involved wastage of resources, finance and time. Difference in business operation: Both companies have their own operation activities to
be followed. This sometimes may create the difference between employees of both the
company and leads to suffer in achievement of goal. This brings conflicts between the
employees of both company that affect the operation and ultimate goal of alliance. Conflict between working style: People having different personality working together
that bring conflict in working style of company. That diversity brings delay in project and
accomplishment of task (Jalali, S.H., 2017) Increase in cost: Collaborative structure is generally a positive component of modern
workplace, but may difference in some business. Even after implementing technology,

cost of business through collaborative efforts are too high for small business due to lack
of budget. Also, it involves large cost due to large number of employees involvement in
project.
 Assuming leadership role in some employees: as there are large number of employees,
some of the employees thinks themselves leaders on the project. It creates an issue in
project as those employees interrupt in every decision and try to lead the project. They
distract on agenda of collaborative relationship and avoid in collaborative support for
project (Li, and et.al., 2020).
3.3 Application on Marks and Spencer
Marks and Spencer are collaborative relations and strategic alliance with many
fashionable industries like High street treasure and cult dress brand Ghost, They work together
to produce some new collection of dress that can attract and demand more in order to increase
their sales volume and revenue from the same. Further Microsoft and Marks and Spencer are also
launched strategic partnership and aimed at transforming the retail experience using the power of
artificial intelligent. They work together for the growth of retail industry and enhance the market
share of Marks and Spencer (Russo, M., 2017).
4. E-commerce and principles.
4.1 Definition of E-commerce
E-commerce means conducting business online. Selling goods and service through
interest in now more easier with the use of software and technology programs that run the main
function of E-commerce which include website that shows product display, online ordering and
online payment and inventory management of company (Mohd Satar, Dastane, and Ma’arif,
2019). It shows doing of business over interconnected network. The e-commerce include B2B
and B2C. The activities involve e-commerce are:
 Generating revenue through online advertisement
 Accepting credit card for commercial sale.
 Diving information of company through internet.
 Selling products through internet on website.
4.2 Principle of e-commerce User Friendliness: e-commerce business are very user-friendly in nature. They are easy
to navigate and search process enable user to reach with various product which are

desired by them to buy. They are provided with ample of detail about the company and
product details in order to purchase the goods or service from company (Polański, 2018) Unique design element: The website shows the new experiences to consumers in order to
attract them and help to increase sales through attraction. There are various online
rivalries that attract through their website. Companies are uses their website and design in
a manner to attract more customers and offers to increase their market segment and
customer base. Responsive technology: Technology is being used to makes better experiences through
videos and images that are uploaded on website. Responsive website is one of the
important factor that increase the chances of purchase by customers. More responsive
website satisfies the customer and leads to make purchase products (Tolstoy, and et.al.,
2020) Know your target audience: The website are design in order to target audience who have
related interests on their products. Well design of website to serve better to customer by
knowing their necessities top provide with comfort and trust. Product details: Company's website shows the enough details of products that need to be
known by customer in order to purchase. Product description are very crucial and
influence buying behaviour of customer. Description include product details, content,
image and videos that easily be acknowledged by people.
 Consistent branding: Company's website shows various exclusive offers, brand value
that help user to distinguish. The details of website include call to action button, font,
colour pattern, product photography, description text are strictly followed by company. It
also builds strong brand customer relationship strongly with the loyal customers (Al-
mutairi, and Alshamari, 2020).
4.3 Application of e-commerce on Marks and Spencer
Marks and Spencer is one of the leading brand in fashion industry that operate mostly
through online platforms. Company's website shows different segment of products that are
offered by company. Marks and Spencer website attract their customer through their website and
major of customers are purchase products through their website only. The e-commerce principles
are being followed by company that assist to lead the market and take competitor advantages.

Website shows all the details in a manner that customer finds easy to use website and to make
purchase of products.
CONCLUSION
From the above report, it is being concluded that digital business is one of the important
source of business that help companies to increase their market share and generate more revenue
from the same. Different business models are used by companies that emerging nowadays.
Digital business have major of advantage but major issue that are faced by companies is privacy
and security issue. Further, new collaborative relationship and strategic relationship are
maintained by company in order to increase the market growth and customer base of company.
These are mostly used by big firms which used to complete their projects. Lastly, e-commerce
industry is also emerging business which is adopted and help company to provide a unique
experience to their customer.

REFERENCES
Books and journals
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic
Change, 27(2), pp.91-99.
Wirtz, B.W., 2019. Digital business models. Springer International Publishing.
Singh, G., Gaur, L. and Agarwal, M., 2017. Factors Influencing the Digital Business
Strategy. Pertanika Journal of Social Sciences & Humanities, 25(3).
Ismail, M.H., Khater, M. and Zaki, M., 2017. Digital business transformation and strategy: What
do we know so far. Cambridge Service Alliance, 10.
Iljashenko, O., Bagaeva, I. and Levina, A., 2019, March. Strategy for establishment of personnel
KPI at health care organization digital transformation. In IOP Conference Series:
Materials Science and Engineering (Vol. 497, No. 1, p. 012029). IOP Publishing.
Boojihawon, D.K. and Ngoasong, Z.M., 2018. Emerging digital business models in developing
economies: The case of Cameroon. Strategic Change, 27(2), pp.129-137.
Schwertner, K., 2017. Digital transformation of business. Trakia Journal of Sciences, 15(1),
pp.388-393.
Boojihawon, D.K. and Ngoasong, Z.M., 2018. Emerging digital business models in developing
economies: The case of Cameroon. Strategic Change, 27(2), pp.129-137.
Sousa, M.J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research, 94, pp.257-263.
Beuren, I.M.and et.al., 2019. Association of information sharing with the risk and performance
of cooperatives' strategic alliance. Revista de Educação e Pesquisa em
Contabilidade, 13(4).
Russo, M. and Cesarani, M., 2017. Strategic alliance success factors: A literature review on
alliance lifecycle. International Journal of Business Administration, 8(3), pp.1-9.
Jalali, S.H., 2017. Partner capabilities and alliance time frame: an analysis of international
strategic alliances from the CEE. Journal of Entrepreneurship, Management and
Innovation, 13(2), pp.59-76.
1

Li, M., Shao, S., Ye, Q., Xu, G. and Huang, G.Q., 2020. Blockchain-enabled logistics finance
execution platform for capital-constrained E-commerce retail. Robotics and Computer-
Integrated Manufacturing, 65, p.101962.
Mohd Satar, N.S., Dastane, O. and Ma’arif, M.Y., 2019. Customer value proposition for E-
Commerce: A case study approach. International Journal of Advanced Computer
Science and Applications, 10(2).
Polański, P.P., 2018. Revisiting country of origin principle: Challenges related to regulating e-
commerce in the European Union. Computer law & security review, 34(3), pp.562-581.
Al-mutairi, A. and Alshamari, M., 2020. Using Expert Evaluation to Assess the Implementation
of Persuasive Design in e-Commerce.
Tolstoy, D., Nordman, E.R., Hånell, S.M. and Özbek, N., 2020. The development of
international e-commerce in retail SMEs: An effectuation perspective. Journal of World
Business, p.101165.
Russo, M., 2017. Alliance management as source of a successful strategy. European Scientific
Journal, 13(7), pp.110-123.
Jalali, S.H., 2017. Partner capabilities and alliance time frame: an analysis of international
strategic alliances from the CEE. Journal of Entrepreneurship, Management and
Innovation, 13(2), pp.59-76.
Online
[Online]. Available through: <>
2

3