Impact of Collaborative Relationships and Strategic Alliances

This article discusses the impact of collaborative relationships and strategic alliances in the context of digital business. It explores the advantages and disadvantages of these partnerships, including their effects on market entry, sales, employee morale, and more.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Definition of digital business with its merits and demerits .....................................................1
2. Evaluate a new emerging digital business models with context to key business issues..........3
3. Impact on new collaborative relationships and strategic alliances ........................................5
4. Define E- commerce and its principles ...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The term digital business creates a new firm designs by member and personal world. It
uses practical application to create a new value in business models to assist their operations by
internal capabilities (Barkatullah, 2018). The aim of this report are to identify key digital
business issues that are required in business models and evaluate strategies that digital business
applied. For this report, selected organisation Greenlight is an award wining Digital Marketing
agency was established in 2001 and provides a marketing services. It offers designs, social
media, digital marketing and they serves customers in united kingdom and Australia. Number of
employees of this enterprise are 51 to 200. This assessment covers a several topics such as
overview of digital business their benefits and limitations, measure new and emerging digital
business, impact on new collaborative relationships, strategic alliances their advantages and
disadvantage, determine how E-commerce principles applied to chosen organisation.
MAIN BODY
1. Definition of digital business with its merits and demerits
Digital business is the one that uses technology or innovation as an advantages of internal
and external trading operations. It includes both analogue brand and conventional players that
transforming their firms with help of digital technologies (Burlacu, Bodislav and Rădulescu,
2018). It helps to create new technology and value in enterprise models, customer experience
that support their operations. It is very important in business to develop their market rapidly,
shift into new markets, expand new brand and innovator of existing customers. With relation to
Greenlight, it is helpful to savings and enhanced sales. They focus on competitive advantages
that technology gains others procedures and providing value to their new customers. It is
significant for enterprise because they develop new brand, shift into new markets and reach
various new clients to establish a brand value, reduces participation and become faster day by
day. Various benefits and limitations that are included in digital business with context to
Greenlight are as follows:
Advantages:
 Global Reaching: In digital business, a websites or any social media channel that
represent or allows to find a new market and trade internationally only on small scale

investment. It includes to increase access between a firm and their potential customers
with help of internet.
 Lower Costs: According to this, a well planned digital business to target those firms who
have a brand value can easily reach right customer at a right place at much lower cost.
 Developed Conversion Rates: It is a percentage of digital marketing that visitors to
websites that can complete a desired goals and objectives. If there is a high conversion
rate then firm can successfully developed in marketing and customers want what they are
offering and easily can get it.
Disadvantages:
 It is a Time Consuming Process: If they create a advertising campaigns or any content
in marketing can take a lot of time (Chaffey, Edmundson-Bird and Hemphill, 2019). It
can take time because they can create a interactive content for customers through a
highly individualized. Business can interact more with potential customers about new
technology or brand.
 Complaints and Feedback: In this, customer feedback are most important in digital
business because any negative or wrong feedback comes through customer side then
product has no value and damage brand goodwill. So they can resolve customer
problems properly and develop their brand effectively and efficiently manner. Security Issue: In digital marketing, there is problem of hackers who hacks their
websites because digital business mostly depend on internet and there are more chances
to hack systems and misuse of any social media accounts. So it is necessary to be alert
regarding privacy or data protection.
Application of using digital business with advantages and disadvantages in context to
Greenlight are as mentioned below:
For Greenlight, digital business helpful to savings and enhanced sales. They focus on
competitive advantages that technology gains others procedures and providing value to their
new customers (Dornberger and Schwaferts, 2021). It is significant for enterprise because they
develop new brand, shift into new markets and reach various new clients to establish a brand
value, reduces participation and become faster day by day. The advantages of digital business in
relation to Greenlight, Global reaching to achieve a business objectives it is essential to improve
digital business through firm can expand their business and technology. Lower Costs firm

reduces cost because it helps to set aggressive price of product or service. This will impact
increase market share in enterprise and helps to gain profit or return. Develop Conversion Rates
help to reach their customers at any time rather than with phone calls. Just sending an email and
make them purchase a product this has impact to learn more about enterprises. Disadvantages of
digital business with context to Greenlight, it is a Time Consuming Procedures can make all
efforts that are used to create campaigns or content then product can come with a new
technologies. The time may be consumed to set a proper setup on social media accounts in which
content is going to be published. Complaints and Feedback, it is helpful to take a valuable
decisions through customers and influence to make a innovative products and any changes in
existing product or services. If customer are not satisfied with product then firm image can down
and invaluable. Security Issue, there is also a risk in online service that provide to customers and
firms that they doesn't give any complete information about service or product on internet. So
there is a need of professional team in enterprise who understand their system of digital
marketing and properly increase sales in an organisation.
2. Evaluate a new emerging digital business models with context to key business issues
Digital business model is creating a value based model for development the benefits of
customer with help of digital technology. The main aim of this model is to bring forth a
significant advantage in which customers are willing to pay. With relation to Greenlight, firm
can used this model because it helps to reach a new target groups through using of digital
technologies (Dornberger, 2018). It attract customer to provide more offers in digital business
model before competitors can do. Several types of digital business model that are used in context
to Greenlight are as follows:
Freemium Model: This is one of most popular model in digital business and its a version
of product and service that customers get charge free of cost. This serves to mange on boarding
procedures with a little effort of sales as possible. In this, users will have a option to upgrade a
compensated version of product and service.
Subscription Model: This type of digital business models that determine customer can
pay a price at regular intervals for access their product or service. This model is based on selling
a product that receive monthly or yearly. For example, Netflix or amazon prime user can pay a
monthly subscription for watching movies, series and TV shows. It provide a basic service to
customer for free and premium offers with subscription model.

Discuss new emerging business model advantages and disadvantages are as under:
Freemium Model:
Advantages:
 Cost Savings: Customer uses premium apps to saving their cost and expect a certain
level of services and commitment from creators. In case of any problems, cost are down
and reduced time period (Gray, 2019). So customer can pay a premium price on a
particular apps so they can enjoy more and less price will pay.
 Differential Pricing: Freemium model can be a profitable for various business. Each and
every business charge a different price for any product or service like a game
development firm charge a $0.99 and other firm can charge another price for game.
Disadvantages:
 Conversion Rates: Usually low conversion rates to paying version and average is about
1-5% this is obviously broad. There is some information about decrease in conversion
rates on free trails basis on product or service.
 Freemium costs money: This model is based on user that doesn't pay a free level. To
maintain a limited product and handle some customer accounts and data storage. Most of
the firms find a cost premium that has result revenue.
Subscription model:
Advantages:
 It offers predictable business flows: This model is based on regular and reliable source
of revenue for enterprise (Härting, Reichstein and Schad, 2018). This is important for
business as daily cash income generate that owners struggle to establish. To implement a
subscription service, they immediately overcome to finding a repeated business and
create a stable economic for firm.
 It allows important flexibility: This model determine that they can apply greater
flexibility for how they deliver their product or services and it is flexible for customers
because have a chance to develop better solutions and gaining their value in service to
make more attractive.

Disadvantages:
 Cost Risks: The subscription model is determined by percentage of subscribers who will
cancel their subscription within a time period. There is a loss of organisation because
customer can cancel their subscription no income can generate and firm can go down.
 Uninterrupted fulfilment: Subscription model services depend on regular uninterrupted
fulfilment. It can ensure that business can mange their scope of delivery and depend on
entire revenue upon delivery without interruption.
Apply new emerging digital business model that are used in context to Greenlight are as follows:
Freemium Model: With relation to Greenlight, firm generate income through offer
connected premium product or service that is to attract small number of customers. It is a way to
establish a upcoming transaction for business and give a service to customers at no cost means
free of cost. If customer can purchase any product they can charge free of cost
Subscription Model: In case of Greenlight, customer can attract because it offers a lot of
products and charge free of cost so most of customer can attract subscription. Firms are also
benefit to increase revenues and offer more marketing opportunities, more chance to collect
customer feedback or data and chance to increase customer ownership.
3. Impact on new collaborative relationships and strategic alliances
Collaborative Relationships: When two or more people work together to achieve a
common goals and objectives in an enterprises (Holotiuk and Beimborn, 2017). It has become a
mixture of working different individuals who have different point of views. Sometimes people
force to listen and communicate with each other in different ways and in business two or more
people are work with common goals, common resources and mutually benefit with each other.
Strategic Alliances: It is an agreement between two organisations who can work
together to pursue a common goal and objectives. It can creates a competitive advantage and
decrease competitors from moving one pace to another place. This agreement is less complex
than joint venture which two organisations create a abstracted business entity. For example;
Starbucks and Barnes & noble.
Advantages and disadvantages of new collaborative relationships and strategic alliances
are as follows:

Collaborative Relationships:
 Division of Labour: When there is a collaborative structure in workplace then division
of work may be improved (Holtforth, Geibel and Kracht, 2017). If more workers
involve in such tasks then work can complete faster and makes it easier for everyone.
When more than one person involve in a specific task whether it is a large project it helps
everyone to have a small portion of responsibility to ensure that getting things done in
particular basis.
 Improved Employee Morale: When employee used collaborative relationships then
there is a increased in workplace morale in which occurs. Having a collaborative
relationships among employees it has effect a positive on their team spirit. To achieve
their goals and objectives they can celebrate their success in group and they can also
build their trust among co workers as each member to accomplishments.
Disadvantages:
 There is a conflict in working styles: In this, when different people work together with
different personalities there is a conflict between two related to working styles. This will
impact in firm goodwill and accomplishing a task or objectives with team members
through different ways for approach work.
 Trust issues among team members: According to this, all employees needs to trust with
each other because work is collaborative an employee doesn't complete their work on
time that they assigned can negative impact on whole team. It can create frustration,
Conflicts among employees, decreasing their effectiveness and tension in environment.
So there is a trust between among employee and maintain a good relationships.
Strategic Alliances:
 Entry into new market: It is an effective way to enter into new and established market.
Firms can easily reach their customers and avoid bad luck by getting into more alliance
with already existing firm in market (Joseph, 2019). Some firms can give access to new
market because they wouldn't possible any company in their own.
 Increased sales: Most of firms can enhance sales through join together with two or more
enterprise and expand their business with another companies. It will impact a deeper
understanding on firms and develop product, sales or any marketing knowledge.

Disadvantages:
 There is a lack of trust: if one partner point out finger on another firm and transfer
blame to another party then firm will not survive and increase stress between their
alliance partners. So trust is most important thing within partners for successful growth of
business.
 Damage to goodwill: In case of strategic alliances, build a reputation is most important
thing in an any organisation. They create a alliance with another firm other firms poor
public relations can harm on affect enterprise reputation. If alliance partner are satisfied
with all obligations then they can promote a business faithfully and it is linked to other
acts.
Applications that are used in collaborative relationships and strategic alliance with context to
Greenlight are as follows:
Collaborative Relationships: With relation to Greenlight, these are develop their impact
on enterprise culture and behaviour of collaborating organizations to ensure that they are
effective to organisations and partners, deliver to enhanced their benefits for stakeholders
through this collaboration (Kedziora and KIVIRANTA, 2018). It is important for organisation
because they bring people together closely and interact with each other.
Strategic Alliances: In case of Greenlight, firm decide to join forces to develop new
products or enter into new market. It is important to gain access another firm knowledge and
resources. It allows enterprise or individual to work towards common goals and objectives.
4. Define E- commerce and its principles
E- Commerce: It refers to buying and selling of goods and services or transmitting their
data or information. It is also known as internet commerce and it operates four major segments
are: business to business, business to consumer, consumer to business and consumer to consumer
(Khan and Uwemi, 2018). It improves their brand image of firm and help enterprise to provide
better services to customers. It emphasis several wide variety of data systems include tools for
buyers and sellers, online shopping and payment option. Any form of business transaction
dealings are related to e commerce and involved these transactions can represent multiple
combinations of vendors, suppliers or any government agencies. It providing and participating
in online places like buying and selling, websites, mobile apps and chatbots. With relation to
Greenlight, it enables firm to develop new feature and existing business reach their potential

customers without any need of physical existence. It helps organization to provide a better
service for customers and makes business faster and efficient, it also gaining profitability and
productivity in an enterprise.
E Commerce principles:
 User friendliness: In this principle, E commerce allows user to reach several products
they want to buy and also provide visitors so that they can understand products well.
 Unique design elements: Market is a full of buying alternatives and there should be a
reason for user to choose a design will compete to visitors through the site and chance to
impress customers effortlessly.
 Know target audience: E commerce know customer very well and design website
properly and serve them better (Kollmann, 2019). They target their audience to check out
their buying patterns and it would be able to enhance user experience.
Apply E commerce principles with context to Geenlight are as follows:
 User Friendliness: In case of Greenlight, firm used to increase their web traffic and each
and every customer used this website to inspire and develop more confidence.
 Unique design elements: According to this principles, it help to improves firm structure
and increase profitability and productivity. It creates perfect environment where people
can work efficiently and effectively. If product design is unique, people can attract more
rather than going to another firm and convey to other people for their brand values it will
increase goodwill to enterprise.
 Know target audience: To know their target customers is essential for business because
they know how to reach them for creating a small business strategy (Li, Frederick and
Gereffi, 2019). It must be carried out to expose needs and motivations of audiences and
it involve what factors are influence to buying behaviour.
CONCLUSION
From the above information, it can be concluded that digital business determine that
creates a brand value and uses technologies for internal and external operations. It can create
mindset for putting right leaders at right place and it is mainly consist of digital transformation,
disruption and business enterprise. In an organisation, digital business focuses on competitive
advantage and technology and create a value to their customers. In this report, several topics are
covered such as overview of digital business with benefits and limitations to determine how

digital business focus customer and create its brand value. New and emerging business model
defines development of benefit of customer in which they are easily willing to pay. Various
impacts on collaborative relationships and strategic alliances with advantages and disadvantages.
To discuss E commerce principles such as user friendliness, unique design elements, know their
target audience and applied on chosen organisation.

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