Digital Business: Key Trends, Emerging Models, Collaborative Relationships, and E-commerce Principles Used by Tesco

DIGITAL BUSINESS

TABLE OF CONTENTS.
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Presenting Key trends and advantages of digital technology and implications for managing
virtual business in the global environment. ................................................................................3
Advantages of digital technology:...............................................................................................4
Benefits to organization:..............................................................................................................4
2. Presenting new and emerging digital business models in the context of key business issues
such as cyber security and ethics.................................................................................................5
3. Describing impact of new collaborative relationships and Strategic alliances of Tesco .......7
4. Presenting e-commerce principles used by Tesco..................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Digital business can be define as technological model used to transform company
services and product as well as modifying the business. In simple words, it enhances internal
values of organization. There are range of benefits of digital business such as creating attention
or attracting range of customers in the firm, increase sales and profit, building innovative
services and improve the experience of people that contribute in enhancing overall growth of
organization. The present report is based on Tesco, a British multinational that deal in grocers
and general merchandize having headquarter at Welwyn Garden UK. Furthermore, the study will
discuss on key trends such as digital security, customer centric vision and artificial intelligence
and how they are helpful in development of firm. In addition to this, report will shed light on
new business and the way E -commerce strategies will benefit the organization.
MAIN BODY
1. Presenting Key trends and advantages of digital technology and implications for managing
virtual business in the global environment.
There are range of business key trends that help organization to grow and expand their
business such as data analytical, customer data platform, digital security and artificial
intelligences will be discussed in detail below:
 Data analytical: It is the process of examining the data relating to customer issues and
market risk. This operation allow Tesco in collecting information relating to customer
taste and preference and what are the new ideas other companies are using to make
appropriate strategies for benefits of organisation. Therefore, it helps firm in managing
their risk that contributes in protecting Tesco from external threats and lead in overall
expansion of business (Ismail and et.al., 2017).
 Customer data platform: It is a type of software that contain information relating to the
customer through making use of various digital platform. This application gives Tesco
complete view of consumer from other digital source. Such as it provides behavioural
data of people living in society likewise how many customers has visited the official
website or on other social sites and what issues they have faced relating to the company
services. Beside this it also provides transactional information like client purchase and
return on the e-commerce. Lastly, it also gives organization demographic data that
include information relating to audience name, address and age.

 Digital security: It is process that use various tool such as antivirus, and biometrics to
protect the company identity, data and other personnel information of employees. This
process helps Tesco in reducing the various online threats such as hacking, false
information regarding company on their social website that can degrade the brand name
of organization. Thus, it helps company in building safe environment for their
employee’s ad customer (Kotane and et.al., 2019).
Advantages of digital technology:
 Increase the efficiency and productivity: Digital technology has improved the
overall enhancement of Tesco such as digital marketing helped company to reach the
global market and attract large customer that contributed in increasing sales of firm
and profitability. This has also reduced the operational cost of company as it helps
Tesco in promoting the business online with low cost and on most of the website it is
free. Thus, it allowed company to cover the local as well as international market that
increased the overall revenue of firm (Marttinen and et.al., 2019).
 Better customer engagement: Digital technology has allowed Tesco to collect
information regarding customer taste and preference data and analyse them that result
in understanding the demands of clients. Digital marketing has also helped
organization in improving the engagement as they allow firm to know their feedback
that result in building strong relation with consumer.
 Increase Revenue: Digital technology allows firm to grow their profit such as digital
promotion that contribute in increasing the sales of their product. This process has
reduced advertisement cost of the company as most of the marketing websites are free
of cost. Along with this has helped company in making new product thus, result in
increasing more profit for Tesco.
Benefits to organization:
 More customer centric focus: Digital technology has benefited Tesco in enhancing
their customer. With help of digital marketing that has contribute in increasing the
overall sales. Along with this it helped firm in making customer approach strategies
by giving data relating to consumer taste and preferences. Therefor it befitted
organization in reaching large customer.