Digital Business: Trends, Advantages, and Disadvantages

This report explores the key trends, advantages, and disadvantages of managing a virtual business. It discusses the importance of technology and its impact on businesses, as well as the comparison between situational and SWOT analysis. The report also evaluates emerging digital business models and the challenges associated with information security threats and ethics.

Digital Business

EXECUTIVE SUMMARY
As per this report it can be said that the importance of digital business is ongoing demand
and digital businesses are taking hug market place and spread their recognition worldwide. This
report deal with the Asos company that operating their business in a digital form through online
retailer platforms. This company mainly offer cloths and cosmetics through digital platforms.
This company established in the year 2000 and the main aim of become a top bran of fashion
industry. Digital business is beneficial for the company which help in expand business all around
the globe. Company make profit through new market, new customers and give them satisfactory
products and services. This report basically deals with the key trends , benefits an drawbacks of
virtual business and discussed a situational analysis of the SWOT model and also determine
digital business models and identify the challenges about the information and security and its
threats. Lastly, this report identify the significance of new collaborative relation & strategic
alliances through technologies.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
QUESTION 1...................................................................................................................................4
Explain key trends, advantages & disadvantages of managing virtual business .......................4
Importance of technology and its impacts on businesses...........................................................6
QUESTION 2...................................................................................................................................6
Compare and contrast Situation and SWOT analysis.................................................................6
Apply situation analysis for any one business in the above cases focussing on personalisation7
QUESTION 3...................................................................................................................................8
Critically evaluation of emerging digital business models and challenges associated with
information security threats and ethics in general.......................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital Business also considered as digital transformation , digital marketing which
provide a new way to engage , collaborate and establish a bridges between the people. Digital
business use appropriate technologies that create a new value and belief that customers can
experience. All the internal and external resources are necessary to perform the digital business
operations. For a successful business, traditional and modern players both are mandatory but in
this time modern businesses players like social media, online platforms , technologies and
internet connectivity all make digital business operations more easy. For this report, Asos
organization is chosen. Asos is a famous British fashion & cosmetic company which operating
their business through online platforms. The headquarter of this retailer company in London. The
prime purpose of this report is to identify the trends , advantage and disadvantage of the virtual
business. This report discuss about the strength and weaknesses through situational analysis and
also consider SWOT analysis. Moreover, this report highlights the importance of digital and e-
commerce business and analyse the business model which determine the collaborative
relationship and the role of strategic alliances.
QUESTION 1
Explain key trends, advantages & disadvantages of managing virtual business
In this present time all the businesses are about to restructure because of the digitalization
of market. In this present time all the business come online through digital media and performing
their business operations on digital form efficiently through internet. Virtual business use many
technological and electronic equipments which ensure the easy access of the day to day business
activities. Virtual business is provide many facilities which make the life easy of the business
owners and employees of the business like employees can perform their business activity from
any time and any where location (Allen, 2017). Asos is a online retailer company of UK which
offer different range of fashionable and cosmetic products which attract the large number of
people. Asos cover all the marketplace and continuously expand their business on the other
areas. Company follow some key trends which make their virtual business operation more easy
that are discussed below-
Massaging Apps

Messaging Apps mainly surpassed the online network and very essential for the virtual
businesses. Through messaging apps, companies can easily performing business activities as per
the current trends and this make easy all the selling and delivering activities for the company and
customers both. Messaging apps help to decline the development cost and the promotional cost
of the company. In this time, messaging apps have massive numbers of users (Boojihawon and
Ngoasong, 2018).
Social media
In social media platforms all the social channels included like websites, emails, search
engine, Facebook, Twitter, You tube , TV, radio and other media included like digital ads, audio
and video content etc. Asos company use all the social media platforms to make their business
more efficient.
Virtual Assistant
This time is all about the online and virtual media which provide all the technological
advancement that help all the virtual business work. Virtual assistants are become more
necessary and helpful to enhancement of business. Virtual assistant is a device and machine that
become more demanding now a days. Asos company utilize all virtual assistant to maintain all
the technological activities and moments of the company.
Advantages and disadvantages of virtual business
Advantages - There are various advantages of virtual business which discussed below- Save Time and Travel - Virtual business help in save time and travel of employees it is a
big advantage of the Asos company which make suitable for the company employees to
perform their task any where. Dynamic Team Membership – Virtual business helpful to generate the dynamic teams
membership in which all the employees of the company across the world can participant
on a one single platforms. Asos company connect with all the employees through online
media and conduct meeting for employees interaction (Chaffey, Edmundson-Bird and
Hemphill, 2019 ). Lower overhead costs- Virtual business are very convenient by cost. Virtual business are
provide the facility of work from home so that employees can save their travel cost and
give more efforts to concentrate on business activities. Asos doing the same with their
employees.

Disadvantages
There are some disadvantage of virtual businesses which are given below- Communication error – Sometimes virtual businesses affected by the communication
error so that all the business activities become disturbed. Asos company faced this
situation sometime but company recover this to take a corrective action.
 Lack of physical interaction – Due to lack of physical interaction, company experienced
some issue sometime because people can believe easily to the physical channels and
stores.
Importance of technology and its impacts on businesses
Digital businesses like Asos and Very, used augment reality technologies for the purpose
of the mapping all the fashionable dresses on to a specific model and provide help or their
customers so that they can purchase clothing that fits customers in an appropriate manner,
provide their clients and customers a simulated display of products on various kinds of body.
Asos is a online retail organization that leading technology for the business activities. Its
mandatory for the Asos to use advanced level of technologies so that company can easily interact
with the audience and promote their fashionable products so that company can engage large
number of audiences and gain more profit. The affect of utilizing augmented reality technologies
on the Asos and Very in a positive way ( Farani, Karimi and Motaghed, 2017).
With the help of technologies, companies are able to come online so that customers can do
online shopping more efficiently and also identified new experiences for online shopping .
Henceforth, company can gain more knowledge about the customers preferences and take
business decision according to this. Company consider the size, measurement of all the garment
products through using the technology and good presentation so that products look more
attractive so that people buy the product and company make more money.
QUESTION 2
Compare and contrast Situation and SWOT analysis
Compare -
Situation consider the manner where some specific things are placed in relation of the
location. This consider the features and proposals of the social situation like authority, role ,
norms and search contracts for another in a way which provide social unity along with the some

sets of actions. Situations analysis refers as an action and framework which adpoted by the
company managers for identifying internal and external situations so that company can
understand the environment , capabilities and people. SWOT analysis used by the company.
SWOT analysis considered as a strategic model of planning. The comparison between strategic
analysis and SWOT analysis are given below-
Differentiation Situational Analysis SWOT analysis
Meaning This analysis refers as an
aggregation of the elements which
help in identifying the micro and
macro factors. Situational analysis
help to use the specific research for
the evaluation and analysed the
growth and help in identifying the
situation of the competitors.
Through SWOT analysis,
company can determine the
micro environmental
situations of the company so
that company can discover
the organizational
situations.
Purpose Asos company main purpose is to
evaluate the whole aspects of
situational analysis in external form
of factors so that company consider
the changes to change the way bin
which company operate ( Heavin
and Power, 2018) .
Asos company main purpose
is to utilize SWOT analysis
to consider the details of
external factors and use it as
an strength and weakness of
the company so that
company can reduce all the
threats and get future
opportunities.
Contrast -
Situational and SWOT analysis are essential for the company and it utilized to analysed
the those factors give positive impact on the company growth. Asos company manager
considered both analysis to identify the choice so that company can select the path.
Apply situation analysis for any one business in the above cases focussing on personalisation
PEST analysis

PEST analysis is used to apply the situational analysis of the company. With the help of
PEST analysis Asos identified the macro environmental factors which are discussed below-
 Political Factors – This factors included the political stability, some kind of taxes and
trade and regulations which affect directly to the business operations. Asos company full
fill all the requirements of the political factors so that company easily perform their
business tasks. UK country political environment not that much influence the online
business of the company. Economic – These factors considered the growth and decline of the economy. UK comes
under the developed country so that it help in improve the profitability of the company
but sometimes fluctuations in economy lead the recession situation so that it affect the
pricing policies of the company which lead the differences in supply and demand of the
products. Company also set price as per the other countries economy position so that
company can easily attract the foreign countries people (Liere-Netheler, Vogelsang and
Packmohr, 2018). Social – These factors very much appropriate of the company. Asos is a cosmetic and
fashion based company so that company need to more focus on the choices , preference,
design and quality of the products according to the cultures and areas so that company
can full fill all the expectations of the customers. This factors mainly deal with the
lifestyle and standard of the people.
 Technological – These factors involved latest and advancement of technologies which
help in operate the Asos company business across the whole world. In this time, the
modification of technologies are t6aking place time to time so that company follow all
the core technology to make their business work in a smooth way. In UK, most of the
people use Microsoft Cloud related services which help the company to make all the
technological transaction in a effective way.

QUESTION 3
Critically evaluation of emerging digital business models and challenges associated with
information security threats and ethics in general
Digital business model basically determine the all the various aspects of the business
which use digital technologies and equipments and hope that company can improve their
business in a multiple way. Digital business and its model mainly help the business to develop
the market value of the company with the help of technologies.
Ad – supported model,
It is considered the important business model which mainly concentrate on the
promotional and selling activities of the company so that company can generate more profit
margin. Through this business model easily identify the customers and offer them a relevant
details about the products that customers need to know about it.
Hidden revenue generation model,
It is also considered by the company . In this model company take social media benefits
and generate more profit. Each and every individual use this and utilize their services.
Hybrid Business Model,
This is also contain as an important emerging digital business model collaborate all the
traditional commodities an activities of company sales with the other additional services like
cloud and hardware which can get through the user subscription (Nambisan, 2017).
The challenges related to information security
Information security with the ethics cosier all the aspects of the business use many practices that
needed to secure all the information of the company which help an support the business an give
advancement of ethical usage. All the c challenges related to the information securities threats
are explained below- Shaky moral & it compass It considered the cyber security and the landscape.
Company also face the challenge of cyber security which affect the reputation of the
company so that Asos company need to main focus on the frenetic climate so that
company can enhance their cyber security.
 Harrowing Headlines of harrowing is a big challenge for the company so that company
need to focus on the ethical and legal activities so that information security and its

obligations can performed well. All the ethical an legal obligations related to the security
incident of the data. Asos company experience many security threats so that company
need to pay more attention on this.
In incorporation top the case study , Asos company manager generate hybrid business
model which help in expand the product space . This business model help in engage all the
fashionable company on the digital media channels with many shoppers. It is determined that
hybrid business model give benefits to the company growth and help in gather the shopper data
also help in analysing the machine learning. Through this model, company easily give
notification regarding the cosmetic and fashionable clothing . This model help in all the
operational activities of the business and help to face all the challenges of ethical and legal
aspects (Ngoasong, 2018).
Information security helped in different company context for instance, Asos is doing
successful business because of their online operation and business activities. Online business
need to protect all the informations and company data so that company can save themselves from
the ethical threats. Few challenges of information security and its threats of Asos company are
given below- Piracy – This is considered as an illegal copy of the detailed information system. Online
company mainly face this challenges . In market , there are many software developer who
designed these types of illegal copies of the company need aware of this activities.
 Unauthorised Access in the business – Company need to take care of the unauthorised
access of the activities. There are many hackers available in the market who access the
business information in an unauthorised way. Asos company is totally based on online an
technology so company need to pay more attention on it and save their company from the
hackers.
CONCLUSION
According to this report it is concluded that digital business is growing very rapidly and
give their proper contribution to make common people life more easy and comfortable. This
report identified many key trends, advantage and disadvantage of the virtual business an specify
that through virtual business company can easily deal with the massive number of employees.
Virtual businesses are beneficial for both company and customers. This report also determine the
comparison between the situational and SWOT analysis so that company can identify their

strength an weakness. This report also determine some business models which help in face all the
challenges that affect the company growth. This report discussed about the new collaborative
relationship and all the strategic alliances of the business.This report also evaluate some
information securities issues which give negative impact on the company development and also
analyse the importance of digital and e- commerce businesses which give positive impact on the
company operations.
REFERENCES
Books and Journals
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competence in shaping Iranian students’ career intentions to start a new digital
business. European Journal of Training and Development.
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decision support guide for managers. Journal of Decision Systems. 27(sup1). pp.38-45.
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manufacturing. In 51st Hawaii International Conference on System Sciences (HICSS),
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Subramaniam, M., Iyer, B. and Venkatraman, V., 2019. Competing in digital
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