Digital Business Report - Assignment

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Digital business......................................................................................................................3
Digital business verses Traditional business..........................................................................3
Factors that have facilitated the uptake of digital business....................................................4
MAIN BODY...................................................................................................................................5
Digital business activity.........................................................................................................5
Mode of operation..................................................................................................................5
Market Segmentation..............................................................................................................6
Key factors for the growth of digital business........................................................................6
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Digital business is a form of business that uses digital media such as internet to
communicate about the product or services to the customer. It has changed the operations as well
as enhance the reach of the business. For the better understanding of the report ASOS plc
company has been taken which is a British online fashion and cosmetic retailer. The company
was founded in 2000 in London, mainly aimed at young adults. They basically sell clothes,
shoes, Accessories, beauty and so on via its online platform. This report makes the discussion
about digital business and how digital business is different from traditional business. Moreover,
factors that facilitate the growth of digital business and mode of business operations.
Furthermore, respective report carries market segment as well as external factor that affect the
growth of business.
Digital business
When all the activities of the business are carried out with the help of electronic media
such as laptop is known digital business (Mithas, Tafti and Mitchell, 2013). It basically helps the
business to eliminate various cost such as maintenance of best or rent of the building along with
that it has expanded the reached of business by not only keeping it confined to to geographical
region. In the context to ASOS, which was founded in 2000 in London. The company sells over
850 brands as well as its own range of clothing and accessories and ships to over 200 countries
from fulfilment centres in the UK, US and Europe. Within UK it has approx 4386 worldwide
according to statistics 2018. ASOS' headquarters are in Camden Town, at Greater London house.
The customer care department is based in Leavesden, near Watford in South-west Hertfordshire.
The website of a business asos.com and asosplc.com. Furthermore, ASOS Plc defined itself as a
digital business as it is don't operate its business traditional but then also it has given competition
not only to other digital business but to traditional business as well.
Digital business verses Traditional business
Traditional business: It refer to exchange of goods and services through the brick and
mortar or physical stores. Here, the owner of the business deals with those people which are
under its mile radius coverage.
Digital business: It refer to the usage of technology to serve the customer, perform core
operations of the business and make long term experience with the customer. Such as ASOS

deals with their customer via online platform and send the essential notification to the customer
regarding the delivery of their good.
Basis Traditional business Digital business
Similarity The purpose of traditional business is
to engage the customer and main long
term relationship with them by
catering their demand (Matt, Hess
and Benlian, 2015).
Digital business purpose is quite
similar to traditional media even they
want to satisfy the demand of
customer and engage the traffic of
potential customer towards their site.
Difference Analytics or tracking can not be
performed in traditional business.
Due to which they don't get the result
at real time which finally slower
down the progress of business
Digital business can make the use of
various analytics such as google
analytics to check its performance at
real time. Accordingly, business can
immediate changes in its business to
decrease the bounce rate (Schmidt and
Cohen, 2013).
Factors that have facilitated the uptake of digital business
Internal or SWOT analysis is used to identify the factor that can help the digital business
to enhance the performance of business are stated below:
Strength : The main strength of ASOS is that it is recruited highly skilled work force
through successful training and learning programs. The company has recognised globally
because of its e-commerce business. They have strengthen their Strong brand portfolio, strong
free cash flow and they has to presented good performance in new markets which can help to
take the advantage of their economies of scale to give best dealing to the customer.
Weakness: As ASOS is not proper financial planning about to current assets and liquidity
and apply new technologies for upgrade business. For this they need more investment and also
for research & development. As compare top other companies ASOS have high attrition rate in
their work force.