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Traditional Business V/S Digital Business (Doc)

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Added on  2020-11-12

Traditional Business V/S Digital Business (Doc)

   Added on 2020-11-12

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Traditional Business V/S Digital Business (Doc)_1
Table of ContentsINTRODUCTION...........................................................................................................................1Business name(Zalando)........................................................................................................1Traditional Business vs. Digital Business..............................................................................1Digital Business models.........................................................................................................2MAIN BODY...................................................................................................................................3Digital business activities.......................................................................................................3Mode of operation..................................................................................................................3Digital business environment.................................................................................................3Marketplace............................................................................................................................4Market growth........................................................................................................................5Market segmentation..............................................................................................................6Key growth factors for digital business..................................................................................6External forces impact on business operations.......................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONDigital business refers to the business which use technology to generate new value inbusiness modes, customers experiences and the internal capabilities that support its main andcore operations (Abdulwahid, Mutalib and Ali, 2014). It can be digitalization in the businesswhen a company start to use technologies in its operations and operate its business with the helpor by using technologies. This assignment related to Zalando, Inc. which is an European e-commerce based multinational company which is based in Berlin. This assignment willdiscussed about digital business, difference between traditional and digital business. Mode ofoperation, market segmentation and external forces that may affect on the business's operationwill be defined. Business name(Zalando)Zalando is an e-commerce company which is a European e-commerce MultinationalCompany which is headquartered in Berlin, Germany. The company is providing their customerswith various services such as Fashion and Lifestyle products in around 17 European Markets.The company was founded in the year 2008 and is dealing in the Online Retail Industry. Thefounder of this company was Rocket Internet, Robert Gentz and David Schneider. The netrevenue of the company in the year 2018 was approx € 5.388 billion. The number of employeesserving the company are 15,619. In addition to this, the company is also having manysubsidiaries such as Zalando Lounge, My Brands Zalando eLogistics, My Brand ZalandoeStudiois, etc. are operated under this name.Traditional Business vs. Digital BusinessTraditional business- It refers to an organisation that can be a store, restaurant and agency. Thisbusiness operates to offer its consumers and clients with a product in exchange forcompensation. It can be a local business which offers its goods and services to its localcustomers. Digital business- It is a business which use technologies ton provide products and services to itsall customers worldwide (Akerkar and Sajja, 2016). It can be a creation of new business designsby blurring the digital and physical worlds. Similarities between traditional and digital business- To operate their business both useadvertising to provide information about about the products and services of the company. The1
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purpose of both is to increase the sells and market share of the company and make positiveimpact in economic condition of the firm in term of profit margin. Differences between traditional and digital business- In traditional business, there are limitedcustomers but in digital business there are number of audience to the company to sell theproducts and services (Berg and Engvik, 2016). In traditional business, the manger of thecompany target specific market but in digital business, the management department of thecompany target its audience globally. Digital Business modelsSWOT Analysis- Strengths WeaknessesZalando has a wide range of brands andwhich helps it in earning sufficientprofit with high customer satisfactionlevel.By using good logistics and distributionsystems, this firm has been able toactualize better customer satisfactionand it help in enhancing theproductivity of the organisation. The company is investing heavily oncustomer oriented services which is itsweakness as the cost increases much asmaking the services as on the demandof customers.Business Model of Zalando can easilybe imitated by the competitors in theindustry which is a weakness for thecompany. OpportunitiesThreatsAs the company is having a wide rangeof brands, so there is also anopportunity for the company to takebenefit of the good will and diversifythe business in more segments.The firm has strong brand recognitionin the premium segment, customershave experience with excellent servicesprovided by Zalando SE Brands in thelower segments.The biggest threat to the company isthe increasing commoditization of theproducts in the service industry (Collinsand Halverson, 2018).However, the company is still theleader in the market but it is facing stiffcompetition from the international andlocal competitors.2
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