Advantages and Implications of Digital Business for Amazon

This report explores the advantages of digital technology and key trends in digital business. It discusses the implications of managing virtual business in the global business environment, focusing on Amazon. It also examines modern business models and their application in Amazon's functions and operations. Additionally, it analyzes the impact of new collaborative relationships and strategic alliances in digital business competition. Finally, it explains the significance of e-commerce principles for Amazon's business.

Digital
business

Executive summary:
In today’s business world information and technology play a major role by facilitating a business
in its technology related operations. In this report importance and elements of information and
technology are covered in a precise manner. In this report significance of e-commerce principles
are also covered and related to multinational e-commerce company Amazon. This report covers
necessary dimensions of digital business for development of activities and functions of a
business entity.

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Advantages of digital technology and key trends related to digital technology and different
implications of managing virtual business in global business environment for competency......3
TASK 2............................................................................................................................................6
Modern and emerging business models related to digital technology and their application in
functions and operations of Amazon...........................................................................................6
TASK 3............................................................................................................................................7
Impact caused by new collaborative relationships and strategic alliances by digital business in
order to compete at the marketplace............................................................................................7
TASK 4............................................................................................................................................9
Explanation of significant e-commerce principles and their application on business of Amazon
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital business is considered as one of the universally accepted way of performing business
activities in a precise manner (Boojihawon, 2018). Most of the companies in national and
international market are shifting from traditional business to digital business to perform accurate
and fast operations. Digital business is supported by different tools of information and
technology in order to develop different approaches from marketplace. This report explains
different aspects and elements of digital business along with its advantages. This report also
includes different types of business models related to digital business are used by famous
organisations. This report also contains impact of establishing collaborative relationships and
strategic alliance to compete in market. In this report example of Amazon Company is taken into
consideration for better understanding of digital business. Amazon is a global e- commerce
company which was established in the year 1994 in United States.
TASK 1
Advantages of digital technology and key trends related to digital technology and different
implications of managing virtual business in global business environment for competency
Key trends in digital business
In the era of stiff competition between different companies it is essential for a traditional
business to shift operations to digital business. Since the spread of information and technology
all over the world digital business has emerged in a precise manner. The recent trends in digital
business are mentioned below:
 Online shopping- The trend of online shopping is considered as one of the major trends
in field of digital business which is helpful for many companies. Online shopping has
increased in a precise manner in different parts of the global in order to fulfil different
needs of customers. Amazon is continuously engaged in providing effective online
shopping related solutions to different by using best technology.
 Online advertisement- Online advertisement of products and services is considered as
another effective trend in the field of digital business which makes a huge impact on
different operations (Davidovski, 2018). Amazon performs huge investment on
marketing department in order to advertise for different products at the marketplace.

 Social media advertisement- In recent times the use of social media has also increased
with the increase in internet and technology. The social media advertising is a crucial
way to attract large number of customer. Amazon also uses social media as an important
medium in development of different operations and functions. Amazon has given clear
instructions to marketing management to formulate effective strategy which is helpful in
achievement of different organisational goals (Dellermann, 2017). Due to spread of
mobile phones and computer systems social media users are present in every corner of
globe. It is easy for a company like Amazon to develop essential aspects related to social
media in order to gain competitive advantage at the marketplace.
Advantages of digital business
In recent times digital business is considered as an effective way of performing different
business activities which are important for business development. There are several advantages
to Amazon for performing different business activities related to digital business in order to
increase revenue. The advantages of digital business for Amazon are following:
 Quick operations- As compared to traditional businesses a digital business is helpful in
providing quick operations to a company. Accurate and quick operations provide
competency edge to digital business at the marketplace (Gupta, 2019). Amazon performs
fast operations of customer and management handling by taking effective use of digital
technology into its different functions.
 Transparency- Systematic record of all transactions of business is maintained with the
help of digital techniques in a business. This approach is helpful in bringing transparency
in whole business which is important need of all global companies. Amazon maintains
full transparency in its operations and also its financial department is facilitated with the
help of different transparent operations.
 Business development- Overall development of a business is also facilitated by digital
business in a precise manner which is helpful in providing competitive advantage to a
business. The business development is perfect and essential goal which is formulated
with the help of professional strategic management (Gupta, 2019). It is compulsory for
Amazon to conduct different operations of business with the help of digital technology in
order to facilitate overall business development.

 Secure and safe functions- Amazon is assisted by many famous IT companies in order
to develop safe and secure transactions which are considered as paperless. The company
is continuously involved in performing different development related goals which are
helpful in formulating different transactions.
 Customer satisfaction- The customer satisfaction is main priority of every business
which should be present in mind of a business organisation. Digital business helps a
company to increase customer satisfaction by formulating effective techniques of
business development. In the era of stiff competition between different companies it is
essential for an organisation to focus on increasing customer satisfaction.
Implications of managing virtual business in global business environment
The competition in global market has become very hard in order to achieve
organisational goals and objectives (Hiteva, 2021). Traditional businesses have changed into
digital business which has created major changes in global business environment. In recent times
many companies are deciding to enter e-commerce market which will create an effect on
functioning on Amazon. The implications of managing virtual business in global environment
are following:
 Increased competition- In global business environment in recent years the competition
has increased which is considered as major implications. The famous companies at
marketplace are also formulating different plans in order to enter global business market.
This increased competition in digital business is also performing a huge impact on
various functions and operations of Amazon.
 Changed strategy- There is a need of changing strategy according to change in different
marketing trends for business trends. Strategy is necessary to be changed in order to
adjust with the current market situation related to digital business (Kedziora, 2018).
Amazon has also hired professional strategic management in order to develop precise
strategy for business needs.
 Government policies- As Amazon and many other e-commerce related companies
compete in global business environment there are several government policies. These
policies mainly impact on different functions which are performed by Amazon. The
political factors which include different political rules and regulations impact majorly on
different operations on Amazon.

TASK 2
Modern and emerging business models related to digital technology and their application in
functions and operations of Amazon
The business models are essential for a business to handle variety of operations in global
business environment (Bereznoy, 2018). The business issues like cyber security and ethical
practices are essential to be handled by a business organisation in order to deal with market
situation. The digital business models which are helpful for Amazon are mentioned below:
 Consumer decision journey by Mc Kinsey- The consumer decision journey is generally
related to the several developments and consumer performance in the field of business in
digital marketing. It is essential for a business to involve consumer decision theory in
order to understand consumer in a deep sense. There are several business organisations at
the marketplace like Amazon effectively tries to develop application of this model to
understand perceptions of customers. In market there are several companies which are
involved in determining different aspects of consumer behaviour for development related
strategy formation (Sathananthan, and et. al., 2017). It is essential for a business
organisation which is performing digital business related operations for better business
environment.
 Honeycomb model- This model is mainly related to social media development in order
to attract large number of customers for increasing business revenue and efficiency. The
application of this model is majorly developed by professional Canadian professors to
facilitate social media related options. It is compulsory for a business organisation to
develop and focus on honeycomb model in order to effectively formulate different social
media related operations (Ishankulov, 2021). The honey comb model is majorly used by
different multinational e-commerce companies which are performing digital operations at
the marketplace. It is essential for a business to develop effective approach at the
marketplace in order to deal with several consequences of business functions.
 Technology acceptance model- This model in field of digital technology model came
was founded in 1989 and is termed as major milestone in performing different operations
related to digital technology. In the era of stiff competition it is essential for a business to
hire professional and skilled employees in order to manage different transactions with the
help of digital technology (Köbnick, 2020). The complete business environment is

facilitated by different changes which are facilitated with the help of digital technology.
Successful business organisations like Amazon perfectly determines the usage and
application of this model in order to develop technology related operations. There is an
essential role played by application of professional approach which is effective in dealing
with several consequences related to digital operations. There is an utmost advantage of
training employees in order to develop different techniques which are essential in
development of major business activities (Scuotto, and et. al., 2017). Many multinational
companies are also majorly deploying technology acceptance model with the help of
professional IT management in order to gain competitive advantage. It is essential for a
business organisation to formulate effective business decisions in order to survive at the
marketplace. The business organisations which are shifting from traditional business to
digital business should precisely implement this model. Amazon has hired skilled experts
for facilitate different techniques for solving different problems which arise in day to day
tasks. There are several business organisations which are trying continuously to develop
different operations for performing digital transactions. It is most useful for business
organisations to implement major operations related to digital technology for better
performing different business activities.
TASK 3
Impact caused by new collaborative relationships and strategic alliances by digital business in
order to compete at the marketplace
In order to compete with different competitors is necessary for a company to focus on
performing different collaborative practices. There are several competitors of Amazon which
directly gives stiff competition to the company at the marketplace. It is essential for company to
select precise strategy which is helpful in development of business and achievement of
organisational goals (Singh, 2017). There is wider impact of major management aspects which
are facilitated by Amazon in order to maintain business activities in a precise manner. In era of
stiff competition between different companies most of the businesses change their different
functions in order to support business functioning. In a business organisation it is essential to
face the challenge which is result of collaboration. There are several business organisations

which are able to implement change management in order to facilitate different techniques. The
major impacts of new collaborative relationships and strategic alliances by digital business are
mentioned below:
 Culture management- The culture of an organisation is changed due to situation created
by new collaborative relationship. Amazon develops it employees and trains them in
order to effectively face several challenges which are result of culture and different
aspects. It is essential for an organisation to develop effective approach in managing
different aspects of culture management to perform different operations at the
marketplace. In the era of stiff competition between several organisations the most of
companies in digital business facilitate change management (Rani, 2019). There are
several companies which are readily able to accept different aspects of change
management for different operations. It is essential for a business organisation to change
its functions related to change management to achieve business development.
 Development of new strategies- It is compulsory for a business organisation to
implement effective strategic management in order to deal with change. There are several
organisations at the marketplace which are transformed into digital business from
traditional business to gain competitive advantage. It is essential for a business
organisation to develop an effective strategy at the marketplace for performing several
operations in a different manner. The business organisations hire skilled and trained
employees for business development in a precise manner. Amazon also performs
different operations which are related to professional strategy in order to compete in new
market (Sousa, 2019). The company organises essential meeting after collaboration in
order to face different consequences of change management. There are different
organisations which are attentive in formulation of precise strategy to attract large
number of customers.
 Functional and structural change- The whole structure from top level management to
bottom level management changes in a precise manner. After the collaboration is
performed at the marketplace the functions and structure of an organisation change in a
precise manner. The functional change is faced by different departments which are
present and functioning in the business environment. In the era of stiff competition
between different companies it is essential for a business organisation to formulate

effective strategy related to functional and structural change. There are different
companies which faces functional and structural change in order to develop different
strategies. The professional management of a company is essential to be deployed in
planning process related to management. The business organisation faces several issues
in order to perform different functions once collaboration is done. There are different
activities and tasks which are organised in a precise manner to develop different aspects
of business in order to survive at the marketplace (Tziogas, 2019). The business
organisations like Amazon take help of skilled and trained employees in order to achieve
business targets.
 Dynamic changes- A business faces several dynamic changes in marketing, financial,
operations and human resource management in order to deal with several consequences
of market. There are several business organisations at the marketplace in order to develop
precise business strategy for business development. Most of the successful business
organisations control all the functions related to changes in different departments for
better operations (Lund, 2018). The dynamic changes which arise in employee
management are specially dealt by human resource management in a business
organisation. Amazon formulates precise strategy in order to deal with different
organisational changes which are dynamic in nature.
TASK 4
Explanation of significant e-commerce principles and their application on business of Amazon
In e-commerce sector there are several principles present which majorly decides the
functioning and operations of a company. In order to follow different functions and tasks of
customer handling it is essential for an e-commerce company to implement major e-commerce
principles for better business development (Weill, 2018). The implications and usage of different
principles related to e-commerce are mentioned below:
 Ethics and integrity- It is essential for an organisation which is performing digital
business at the marketplace to consider several ethics. The customers who are
present at the marketplace are generally impressed by ethics and integrity related
practices performed by a business. The ethics and integrity in employees develops
harmony between them and also helps in development of moral values in a business.

Amazon is conducting ethical business in digital marketing in order to increase
customer involvement and business revenue.
 Right information- The business which is performing digital business at the
marketplace is supposed to provide right information to customers. The customers
have right to know about different products and services and should be informed in a
precise manner. Amazon is engaged in providing right and crucial information about
a product on its website to attract large number of customers.
 Fair operations- It is the major responsibility of a digital business to conduct fair
and transparent operations at the marketplace to gain customer satisfaction. It is
recommended for Amazon to perform all operations in a fair manner for increasing
business growth and development (Tehci, 2021). The companies in global market
like Amazon are conducting fair operations since years to gain goodwill at the
marketplace.
 Customer relationship management- This is considered as most crucial e-
commerce related principle which is helpful in maintaining crucial information with
the customers. The business organisation should focus on providing effective
solutions to customers for majorly gaining competitive advantage (Wiesböck, 2020).
In the era of stiff competition between different companies it is essential for a
business to deploy professional management for handling different types of
customers.
 Fulfil promises- It is very much important for a company to fulfil all the promises
which are made by it in order to gain trust of different customer. It is essential
responsibility of business to prove that it is competent enough to provide effective
solutions for different problems to increase customer satisfaction. There are several
companies present in e-commerce market which are effectively involved in
preparation of different goals and policies (van der Marel, 2021). In order to achieve
different goals and business objectives many companies formulate different promises
for the customers. At last these companies ignore the promises mainly due to
greediness and lose their market share. It is ethical responsibility of a business to
formulate an effective agenda in order to fulfil all major promises to the customers.

CONCLUSION
From the above stated report it can be concluded that digital business is effective and
efficient way of performing different business activities. This report concludes that in the era of
stiff competition between different companies it is essential for a business organisation to
perform operations with help of technology. The above discussion also concludes that it is
essential for a company to take support of professional IT management and experts for smoothly
functioning at the marketplace. This report also concludes that in order to gain competitive
advantage at the marketplace it is essential for a business to install contemporary technology.

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