Digital Business: Key Trends, Advantages, and Emerging Models

This report discusses the advantages and key trends of digital business, including the reduction of operating costs, higher accessibility to target audiences, and faster interaction with customers. It also evaluates the impact of cybersecurity and ethics, and the benefits of collaborative relationships and strategic alliances. The report focuses on Argos, a UK-based e-commerce business, and its well-developed website. The report concludes with a discussion of the impact of cryptocurrency on Argos.

DIGITAL BUSINESS

EXECUTIVE SUMMARY
Digital or e-commerce business refers to the conduction of business operations over the
internet. In this report, the discussion pertaining to key trends and advantages of digital business
has been done which results in understanding that these business models are helpful in lowering
costs of operation and obtaining higher accessibility of target audience. The report has
highlighted the need for considering issues related to cybersecurity and ethics in the wake of new
and emerging business models for greater customer loyalty and better reputation in the
marketplace. Also, collaborative relationships and strategic alliances have been proved to be
beneficial in terms of sharing digital knowledge and expertise while carrying on business
through digital platforms. At last, the impact of cryptocurrency has been discussed critically
which reflects that by accepting digital currency as a medium of exchange, transactions can be
completed in quick and easier manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Overview of advantages and Key trends of digital technology..................................................4
New and emerging digital business models................................................................................8
Evaluation of impact of new collaborative relationships and strategic alliances through digital
technology.................................................................................................................................10
Impact of cryptocurrency on Argos..........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journals...................................................................................................................13
Online........................................................................................................................................14

INTRODUCTION
Digital or e-commerce business refers to the transmission of goods and services over the
internet. The aim of this report is to perform strategic evaluation of a digital or e – commerce
business either having B2B or B2C model for their business. The business will be selected on
criteria such as the business must be having a well-developed website, so that required
information can be gathered related to their strategies and operations. Accordingly, Argos will be
selected as a digital or e-commerce business on which the whole report will be based. Argos is a
catalogue retailer having its operations within UK and Ireland. It was being acquired in 2016 by
Sainsbury’s, one of the greatest supermarket chain in UK and accordingly, Argos is considered
to be a part of Sainsbury’s Group. Argos is known as a leading retailer selling general
merchandise across UK with more than 60000 products in its catalogue where sales took place
through apps, website, stores and click and collect points conveniently available within the
supermarkets of Sainsbury’s (Argos. 2022). This online retailer is considered to be a technology
led retailer where the websites is a well-developed one receiving more than billion visits per
annum, and accordingly, 90% of the company’s sales are generated online (Grand View
Research. 2022). The overall growth of digital business at global level is forecasted as 17.42%
CAGR for the forecasting period ranging from 2021 to 2026. Within UK itself, the contribution
made by digital or e-commerce business towards the economy amount to more than 150 billion
(Economic times. 2022).
This report includes the discussion pertaining to overview of key trends and advantages
offered by digital technology and its impact over the management of virtual business with
reference to Argos. Also, critical evaluation of new and emerging models in the field of digital
business will be done by taking into account the key business issues like cyber security and
ethics used or may be used by Argos. Furthermore, the impact of new collaborative relationships
and strategic alliances will be evaluated with reference to Argos. At last, the report will be ended
on the discussion pertaining to the impact of crypto currency over the chosen digital business
that is, Argos.
Overview of advantages and Key trends of digital technology
Digital or virtual business: A virtual or digital or e-commerce business refers to such business
where most or all of the business activities are carried out over the internet. There may be or may

not be a physical presence of the business in terms of office or warehouse but is necessarily does
not have any physical location that could be visited by customers. Argos through its well –
developed website that is, argos.co.uk, which is being operated by Argos limited is a popular
online store with a focused selling strategy across the national boundaries of UK because net
sales derived through its e-commerce business is almost entirely associated with United
Kingdom (Dirschl and et.al., 2020).
Advantages of digital or virtual business
Virtual business are regarded as one of the biggest driver of transformation of workplace and
accordingly, the following advantages associated with it have been identified:
 There are considerable reduction in the overall operating costs due to the absence of
several costs associated with the maintainance of physical store in terms of rent,
inventory management, store design, repairs, etc. Accordingly, costs associated with
these aspects can be reduced while carrying on business through e-commerce platform.
 The marketing and advertisements become highly affordable and businesses are not
required to spend a lot towards promoting their products and services. This is because e-
commerce has provided with several quick and affordable ways to market and advertise
online because these business models are considered as a marketplace providing facilities
of visual channels to facilitate showing off products and services in easier and affordable
manner. For instance, Argos is using good quality resolution images, videos and info
graphics while displaying their products among target audience (Udovita, 2020).
 There were higher accessibility to the target audience is possible while a seller or
business carried out in a physical store has limited reach in terms of number of buyers
they could be able to serve. In case of digital marketplace, companies such as Argos have
their own logistics and delivery system and accordingly, they are able to deliver their
products and services to even those customers who are living far away from them.
Accordingly, business expansion could be done easily without any great efforts or huge
costs.
 Interaction with market players in terms of responding them from time to time becomes
faster while carrying on business online because of the presence of streamlined delivery

or logistics system and accordingly, delivering buyer’s order in an efficient manner is
possible.
 With the help of e-commerce business model, owners or sellers are able to serve their
customers around the clock without any restriction of opening or closing the shop as
whatever orders does the customer place gets recorded automatically in their system.
Accordingly, order processing can be done quickly without losing customers to other
competitive businesses. Sellers have well-established product page where they can input as much information as
they could or desire about their product allowing businesses to ensure that their
customers could make informed buying decisions. Also, there is a plenty of space over
websites of online businesses to showcase product diversity in terms of their sizes,
details, colors, etc. All of these facilities are not available for seller carrying on their
business through physical stores.
Key trends in digital or virtual business
Businesses that are operating through digital platform are continuously restructuring their
conduct in order to accommodate the emerging trends of digital marketplaces within their
operations. The following are the key or emerging trends associated with digital or virtual
business.
 Past social networks in terms of monthly active users have been surpassed and surged by
messaging applications. This trend has emerged as a result of lower developmental costs
along with highly intuitive AI which has helped in propelling Chabots into the
mainstream. These chatbots facilitate communication with customers through textual or
auditory methods and thus helpful in ensuring higher customer engagement.
 Augmented reality and virtual reality are yet to make significant impact over the
customers of these business models and these are another emerging trends finding home
within an enterprise setting. These technologies are creating an immersive experiences
for their shoppers and simulating real life. The customers are able to explore virtual
showrooms along with touching, feeling and experiencing the product which gives them
a compelling reason for visiting and buying through online platforms. AR allows

customers for previewing product or experiencing a service offered by e-commerce on
their own time and environment prior to getting elected for making actual purchase of a
product (Udovita, 2020). Social media platforms are finding its own way in terms of being an attractive channel for
marketing video content made by e-commerce businesses. In modern times, more video
content has been uploaded over these social network platforms that what have been
shown through television networks as 87% of online marketers are preferring to market
their product through creating and uploading video content over these social media
platforms (Erceg and Zoranović, 2022).
Application of key trends and advantages over Argos
Advantages to Argos of being e-commerce are as follows:
 Argos is being able to overcome the issue of geographical limitation through initiating
sales orders with the help of well-developed e-commerce website. This in turn has helped
them in getting greater market share by targeting customers across UK and Ireland
(Priambada and et.al., 2020).
 Argos is successful using social media traffic and pay per click as a channel for
advertisement which helps it in reducing their costs. Moreover, the automatic checkout
system, inventory management, payments and billing system required hiring for less
number of employees for carrying out these functions which leads to helping businesses
in reducing their overall operating costs (Argos. 2022).
Key trends within Argos
 Argos have adopted voice search shopping technology in attempt of meeting their
customer demand and positioning themselves above other competitive rivalries by taking
advantage of this technology (Dirschl and et.al., 2020).
 With the help of AR technology, Argos have allowed its online shoppers to view and
interact with their products in a better way by simulating their experience with what
could be possible in a physical store.

New and emerging digital business models
Definition of new and emerging business models
A new and emerging business model can be defined as a business that is largely driven by
technology. Business model means a way in which business creates, delivers and generate value
in social, cultural, economic and various other contexts. New and emerging business models
based on digital technologies known as digital businesses generally involves creation of value on
the basis of developing and offering customer benefits in great way through utilizing digital
technologies (Godin and et.al., 2021). The purpose for businesses are going for digitalized model
is to generate significant advantage, so that higher level of customer satisfaction can be ensured
which in turn helpful in business sustainability through customer retention and greater market
share.
Discussion of new and emerging business models in the context of cybersecurity and ethics
Cybersecurity can be defined as an application of processes, control and technologies in
an attempt to protect networks, devices, data, systems and programs from cyber attacks. With the
help of cybersecurity, probable risk of cyber attacks can be reduced which in turn helpful in
ensuring protection against unauthorized exploitation of network, systems and technologies.
With regard to e-commerce business model, cybersecurity is very crucial because in the
absence of this, there are high risk of cyber attacks which would be resulting in loss of customer
related data (both personal and confidential) (Bochulia, 2021). This in turn would lead to losing
revenue because of poor reputation in the market or among target audience and accordingly,
overall business's viability gets lost. Those able to carry out cyber criminals uses advanced
tactics through which they are successful in stealing confident business information causing
major losses for the latter. Therefore, it is necessary for those carrying out their business
operations through digital platforms to take measures in order to protect their business as well as
customers against the threats of cyber criminals. A primary impact that cybercrime could have
over a digital business is financial in nature as it is considered as a profit – driven activity carried
out by criminals which involves email and internet fraud, ransomware attacks and identity fraud
which attempts to steal details associated with credit card, financial account or any other mode of
payment related information.

Right from the inception of online businesses in the world of internet, there is a headache
caused by financial fraudsters to businesses which majorly involves credit card fraud, refund and
fake return fraud. The former involves purchases made by cybercriminal by using stolen credit
card information for buying products from e-commerce store (Jelassi and Martínez-López,
2020). This issue of cybercrime requires an action from business owners and management to
enhance cybersecurity. Also, fraudsters used to steal personal details for getting a new credit
card. The latter that is, refund and fake return fraud involves unauthorized transactions
performance and clearance of trail which leads to major losses for e-commerce business.
Another key issue associated with emerging digital business model is ethics. In simple
terms, ethics refers to the system of moral principles which affect the way people lead their lives
and make decisions. Ethics allows for understanding what is good for an individual or society as
a whole. With regard to digital business model, there are several ethical issues that a business
faces while carrying on their operations through digital technologies such as security, privacy,
intellectual property rights, trust and many other issues related to environment. Ethics is
necessary for e-commerce businesses due to the availability of wide variety of choices online
these days and if customers feels that the company is not doing something in right way, they
would definitely find someone else for making purchase of products and services whom they feel
are doing everything in ethical manner. Thus, it is very crucial to be ethical while doing business
through e-commerce platform (Alkhamery, Anwar Zainol and Al-Nashmi, 2020). Some of major
ethical issues associated with digital business are web tracking, online privacy and web spoofing.
Application to Argos
For ensuring greater cybersecurity, Argos management has installed AVS (Address Verification
System) in order to detect and curb fraudulent activities that could take place on their online
platform.
Argos is using business model based on digital technology which is built around offering
greater convenience, value and choice to their target audience (Abdelaal, Khater and Zaki, 2018).
Accordingly, the company is able to develop and grow loyal customer base which is getting
attracted towards broad ranges of its product and keen prices.

Evaluation of impact of new collaborative relationships and strategic alliances through digital
technology
Collaborative relationships can be defined as a participation of at least two parties which
involves agreement for sharing resources, knowledge, finances and people. There are common
goals of those organizations who are involved in collaborative relationship. The essence of such
relationships is of mutually benefiting all the parties from working together (Boneva, 2018).
Strategic alliance can be defined as an agreement taking place between two or more
parties which states that the parties involved in the agreement are supposed to act in a certain
way in order to attain a common goal. Strategic partners alliances for sharing resources like
distribution channels, knowledge, expertise and manufacturing capabilities (Astafeva and et.al.,
2019). However, there is an autonomy for each party towards gaining new opportunities.
Advantages of collaborative relationship through digital technology
Through digital technologies, collaborative actions can be carried out in easier way by
establishing quick communication, effective collaboration and getting done with the assigned
work in effective manner with team members. This in turn helpful in reducing lead time and
improving workflow.
Disadvantages of collaborative relationship through digital technology
With the use of digital technologies in collaborative relationships, everything done in virtual
manner which leads to reduction in personal contact and accordingly, there are would be greater
confusion among team members with regard to what is expected from them. Also, by getting
connected for 24/7, employees may be that the boundaries between their personal and
professional lives are getting blurred. Accordingly, there could be lower employee morale and
productivity (Dasser, 2019).
Advantages of Strategic alliances through digital technology
Strategic alliance through digital technology facilitates greater value in terms of speed and
innovation which acts as a game changer for all the parties involved (Sedera, Tan and Xu, 2022).
Also, the business could save considerable amount for training their employees on each and
every aspects associated with digital transformation and instead they could utilize others
knowledge and expertise with regard to the use of digital technology.

Disadvantages of Strategic alliances through digital technology
As parties involved in strategic alliance are independent and enjoys autonomy at first hand and if
the same would be accomplished through digital technology then there would be weaker
involvement of management and less efficient communication of common goals or strategies to
attain the same. Also, there would be less control exercised over certain issues such as operating
costs, product quality and employees performance.
Application to Argos
Argos could use collaborative partnership for sharing distribution and logistics system of e-
commerce giant such as Amazon which could be helpful for it in reducing the costs associated
with setting up their own logistics or delivery system along with using expertise of Amazon in
logistics and delivery system.
On the other hand, Argos could form strategic alliance with the business offering product
photography solutions to get greater customer attraction and purchases (Larjovuori, Bordi and
Heikkilä-Tammi, 2018). The solutions are meant for quality product photography to ensure that
the product is of high quality by building customer's trust in products.
Impact of cryptocurrency on Argos
Definition of cryptocurrency
A cryptocurrency can be defined as a digital currency which acts as a medium of
exchange with the help of computer networks having no reliant from any central authority like
bank, or government for upholding and maintaining it (Saha, 2018). It is secured by
cryptography which results in making it impossible to be counterfeited and spend twice. Some
examples of cryptocurrency are Bitcoin, Ethereum, Litecoin, Dogecoin, etc.
Impact of cryptocurrency on digital business
There are many incentives provided by cryptocurrency to entrepreneurs across the globe by
making it easier for them to reach international markets instead of remaining restricted to the
national markets.
 Cryptocurrency has made digital transactions quick and easier as there is no requirements
for middlemen and marketplaces (Li and et.al., 2021). Also, while accepting digital coins

as a means of exchange, there is no need to verify bank details and accordingly, buying
and selling becomes less complex and time-consuming.
 There would be a power shift in e-commerce with the use of cryptocurrency as
companies would not be having the information for targeted ads.
 In case of credit card payments, harvesting details associated with spending is possible
while in case of cryptocurrency there are no storage of history pertaining to online
purchases and therefore, only it is only known to the users that where they had spent their
monies.
Bit coin adoption by El Salvador
In June 2021, El Salvador was the first country who have adopted bitcoin as a legal
tender and enacts legislation to be effected from September of the same year (Nwaiwu, 2018).
According to the arguments of Dollar advocates, the expected benefits associated with the
adoption of bitcoin such as macroeconomic stability would certainly outweigh the losses in terms
of monetary interdependence, economic sovereignty and seigniorage incurred by El Salvador.
However, the economy was left more dependent over remittances due to the purchasing power
getting plummeted suddenly which averaged around 20% of GDP per year.
CONCLUSION
From the above report it has been concluded that digital business is an emerging business
model providing for several advantages for both the seller and shoppers. In this report, the key
trends and advantages of digital business have been evaluated along with new and emerging
models in growing digital world. Also, several issues such as cybersecurity and ethics have been
discussed in this report that could be used as a competitive advantage by Argos. Furthermore,
how collaborative relationships and strategic alliances have affected due to digitalisation has
been evaluated. At last, the evaluation with regard to the impact of cryptocurrency on digital
business have been done.

REFERENCES
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