Overview of Digital Business: Advantages, Disadvantages, and Impact of Collaborative Relationships and Strategic Alliances

DIGITAL BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Overview of digital business along with advantages and disadvantages of the business.......3
2. New and emerging digital business models in context of key issues of business...................5
3. Impact of new collaborative relationship and strategic alliance with help of digital
technology ..................................................................................................................................6
4. E-commerce principles utilized by eBay................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital businesses utilize the advanced technology in order to create new value in
business models, consumer experiences internal abilities that support its mid-point operations. It
includes both the new start-up businesses while the traditional businesses which modify their
working through starting their work on new and advanced digital platform. It is basically usage
of technology in efficient manner which enables the people, sales team, customer service
department, marketing team, etc. to connect more appropriately with their current and future
consumers (Effah, J., 2019).
Ebay is a multinational e-commerce organization based in California which provides
services in C2C i.e. consumer to consumer and B2B i.e. business to business sales through their
website (Sánchez‐López, J.M., 2018).
This report will describe the thoughts in detail related to the overview of digital business
along with its advantages and disadvantages, emergence of digital business models and the
impact of collaborative relationships and strategic alliances with the help of this technology
within eBay. Apart from this, the study will also highlight the concept of e-commerce principles
used by eBay.
MAIN BODY
1. Overview of digital business along with advantages and disadvantages of the business
Digital business is being defined as the creation of the new business which is designed by
blurring the digital and physical world. This makes the use of the technology in order to create
the business models to improve the customer experience and internal capabilities for the support
of the core operations. In the current competitive world the major preference is being given to
the use of the technology and because of this reason the concept of digital business is at peak.
This term involves both the digital that is the brands and the traditional companies which are
transforming their business into the digital business that is want to implement the latest
technology within their business. This will assist the companies in managing the business as per
the latest technological changes and this will affect the working of the company (Geliskhanov
Islam, Yudina Tamara and Babkin Alexander, 2018).
The eBay is also a e- commerce business which facilitate consumer to consumer and the
business to consumer sales. The company was founded in the year 1995 by Pierre Omidyar and

is headquartered in California. The website of eBay involves an online auction and shopping site
wherein people can sell and buy a variety of the product and services all over the world. This
website is free to be used by any person but the sellers over the website need to pay some fees to
use for the listing items which company is selling over eBay.
There are many different businesses which makes use of the digital business and this will
result in many good aspect and some negative impact as well over the business. This is
pertaining to the fact that there are many advantages and drawbacks relating to the use of digital
business. Hence, eBay as well faces many of the benefits and limitation which affect the working
and operations of the digital business. The advantages and disadvantages of digital business
faced by eBay are as follows-
Advantages
 The major benefit which eBay faces is that this eliminates the need of the physical store
and this allows the business to increase their consumer base. This is pertaining to the fact
that when the company will be providing all the services online then there will not be any
need of opening a physical store (Advantages and disadvantages of online businesses,
2021). This is beneficial for both the eBay and the seller who are selling on this platform.
The reason underlying this fact is that eBay is a website and the seller over eBay does not
need any physical store and can sell online with help of eBay only.
 In addition to this another benefit of using the digital business is that many different types
of cost will be saved. The reason pertaining to the fact is that when the business is being
conducted online then rent will not be given, maintenance cost, different types of bills
etc. will be saved by the business. Hence, this will increase the profitability of the
company and the business will be increased to a great extent.
 Furthermore, another benefit of using this digital business concept is that this help the
business to be in touch with the consumer in good and effective manner. The major
reason underlying this fact is that in this modern world the consumer are attracted
towards the use of internet and with the current pandemic the interest of consumer has
increased for the online shopping. Hence, this is a benefit to the company that they will
have a large consumer base and this will increase the profitability of the company.
Disadvantages