Digital Business: Overview, Advantages, Disadvantages, and Impact of Collaborative Relationships

This report provides an overview of digital business, including its advantages and disadvantages. It evaluates the new digital business models used by Waitrose to address cyber security and ethics. The report also discusses the impact of collaborative relationships and strategic alliances in the digital business landscape. Additionally, it explores the e-commerce principles employed by Waitrose.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Overview of digital business with advantages and disadvantages...........................................4
2. Evaluating new digital business model in terms of business issues which are cyber security
and ethics......................................................................................................................................6
3 Impact of new collaborative relationship and strategic alliance .............................................8
4. e commerce principles used by Waitrose................................................................................9
Recommendations......................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Digital business means when business is conducted via technology. It is trending as
physical stores are shifted to online stores (Weill and Woerner, 2018). Waitrose is the well-
established supermarket chain. Company is known for its good quality of goods. They are
fulfilling daily necessity of consumers by offering them groceries. This report will give overview
of digital business. Also discussing advantages and disadvantages of digital business. Further
investigation will evaluate digital business models which company is using to deal with business
issues which include cyber security and ethics. Report will also discuss impact of new
collaborative relationships and strategic alliance through digital technology and e-commerce
principles used by Waitrose.
MAIN BODY
1. Overview of digital business with advantages and disadvantages.
Digital business:
In the digital business technology is involved while doing the business. It involves
manufacturing, customer service etc. nowadays majority of businesses are using digital platforms
so that their sales and profits can be increased. In digital business internet plays vital role.
Internet users are increasing day by day. Digitalization has given business transformation
through which they can advertise their products efficiently and effectively. Digital business
involves carrying the business digitally. Companies are using social media marketing, content
writing, email marketing etc in order to promote their business.
Advantages of digital business:
digital presence:
Digital presence is the greatest advantage to business because through this company will get
digital visibility. Waitrose have its presence on social media, have online stores, write blogs in
which they mention that how their manufactured products can be used (Xu and Koivumäki,
2019).
Customer feedbacks:
Through digital marketing company can easily know customers feedbacks. As on social media
customer gives review on company's product which help them to understand that customers are

satisfied or not. It will also help company to know that where improvements are required. When
company satisfied the customer then it increases customer loyalty.
Enhancing productivity:
Digitalization helps company to use advanced digital technology based tools which facilitate
easy work. Waitrose use technology tools so that their productivity can be increased and costs
can be decreased (Bican and Brem, 2020). Profit margins can be increased by the company by
reducing unnecessary costs.
Contact channels with customers:
Waitrose can communicate easily via digital platforms with customers. Nowadays companies are
using social media platforms to communicate with customers. Customer also feel valued if
company make changes according to their preferences.
Helping in decision-making:
Through digitalization company has gains knowledge and build skills which helps Waitrose in
making effective decisions. As digital business can easily communicate with potential customers
which helps them in taking better decisions of the company.
Better working conditions:
For digital business like Waitrose have given flexible working to their employees. After business
got digitalized employees can work for them home as well (Lenkenhoff and et.al., 2018). It
provides flexibility to them. Employees of the company are also motivated because of good
working conditions and also reduces employee turnover rate.
Encourage innovation:
Through digitalization, it has become easy for business to adopt innovation. As company can
easily gain market knowledge and grab opportunities which were existing in markets. Innovation
is helpful in increasing the market share and also achieving the objectives.
Disadvantages of digital business:
privacy concerns:
Privacy concerns are increasing with time in digital business. Waitrose are always in stress of
leaking out company's confidential information (Kahre, Hoffmann and Ahlemann, 2017).
Hackers are their which can hacked data of company and can give to rival company or can also
blackmail the company.
Increase complexity:

Digital businesses are not easy to operate as it requires digital skills and knowledge. In digital
business employees have to use advanced technology and which is not possible for every
employee to understand. Waitrose should give training to their employees so that they develop
skills do carry out digital business effectively.
Social disconnect:
When people do communication digitally then they communicate virtually and not face to face
which can increase social disconnect or leads to isolation. It is said that face to face interactions
are more efficient than virtual interactions (Kreutzer, Neugebauer and Pattloch, 2017). As it
helps in building relations and understanding things more accurately. People can also went into
stress because of social disconnect.
Data security:
When businesses are carried digitally then it involves much data which is stored in computers or
other electronic devise. Waitrose is facing difficulty in keeping data safe. As if data got leaked
then it can hurt the reputation of company and company can also go into big trouble.
Increasing work load:
Emails are increasing with time which include query mail, order mail etc. it is not easy for
employees to reply every email in single day. Hence increasing work load for the employees.
Increased competition:
Through digitalization company is able to sell their products worldwide as it has increased reach
of the company. It has increase competition making it difficult for the company to survive
(Chaffey, Edmundson-Bird and Hemphill, 2019). It also attracts new companies which is threat
for Waitrose.
2. Evaluating new digital business model in terms of business issues which are cyber security
and ethics.
Blockchain model:
This is the digital business model which gives many benefits to the company. It builds
trust and transparency and also gives value exchange to the businesses (Digital Business Model –
How Digital Transforms Value., 2021). This model is used by Waitrose company because it is
helpful in reducing transaction times, costs and improvising cash flow and equipments. It is also
helpful in ensuring cyber security as it track assets from its origin to the purchase. This digital

business model is made from the combination of blockchain and digital technology. Along with
reducing cyber security risk the model also helps in improvising supply logistics.
Marketplace model:
Through digital platforms company gets international market for their products. Waitrose
adopted marketplace model in order to sell their products at global level. It is helpful in building
strong brand image and recognition worldwide. Company can sell their products online and that
also requires small investment.
Freemium model:
When company provide digital services free is known as freemium. In the freemium model in
order to attract more customers company give some services for free but not complete services
for free. It is helpful in increasing sales because it attracts customers by giving partial services
for free. When company will convert free services into the paid one then they should take care of
ethics. Ethical practice should be followed by company in business practice.
On demand model:
Nowadays consumers can consume content online which allow them in getting access wherever
and any time they want to consume. This was not possible in earlier times because at that time
through traditional media like TV, newspaper or radio this was not possible. Waitrose also uses
this model and post content so that their customer can visit at their content whenever they want.
On demand model says that now viewing content will not be required any time as that can be
done at any time.
E commerce model:
Through e-commerce model customers can easily purchase products and services which they
want to purchase. This digital models is used by many companies (Ismail, Khater and Zaki,
2017). Through this model Waitrose online sales has increased and this helps company in getting
good revenue. E commerce model does not only link business to customers only but also link
business to business, consumer to consumer as well. It can be operated over computers,
smartphones etc. it helps in making good shopping experience. As e-commerce is done through
internet so customers are required to have good internet facility with them. E commerce has
become the substitute for offline businesses or physical stores.

3 Impact of new collaborative relationship and strategic alliance
Strategic alliance refers to the agreement between two companies to run the project or
company (Nguyen, 2020). Basically it is an agreement between two companies who got ready to
share their resources with each other so that they may attain the conman goal but both the
companies do not loss their entity and stay independent. So this relationship know as the
collaborative retranslation. As the company called wait rose & partners is also having a strategic
alliance and using the valuable resources of each other. Wait Rose is a chain of supermarket and
deals in retail products on the other hand Partners is the UK's largest employee owned business.
Strategic alliance plays a vital role inn today's business, as many companies are making alliance
with other companies who have proper resources. As strategic alliance saves the extra cost of the
company, to survive in the market companies have to adopt new resources such as technology
and machinery. But with the help of strategic alliance they can easily use the technology and
resource of other company by reaming independent all they have ton do is just they have to
share profit with other company but in result they may get new and advanced resources (Elia and
et.al, 2019). With the the help of advanced resources company may attain its target goal and also
by implementing new resources at work they may provide quick services to the customers.
When the customer get satisfied with the product and services offered by the company they may
do mouth publicity of the company and this will increase the brand value and goodwill of the
company, which is beneficial for those company who is providing their valuable resources,
such company may also get higher profit. So this is one the biggest advantage of strategic
alliance to the company.
Another impact of strategic alliance is that company may produce productive goods as
per the demands of the customers. When the company get proper human resource and also the
machine and other tools they may easily fulfil the demand of the market as they have proper
resources to produce the efficient goods.
This company has selected digital technology through which they provide goods and
product on their online website and strategic alliance helps a lot to Wait rose. By collaborating
with Partners, Wait Rose get the chance to use the fast and modern technology of Partners so
that they can provide best online services to its customer. Apart from this, due to modern
technology Wait Rose is able to provide all the necessary information to the customers with the
help of their online website.

Besides this, company can provide a section on their website if the customer do bulk
buying they may get various discount offers and vouchers. So by using the modern technology
of Partners, Wait Rose has become technologically advanced company.
By collaborating with Partners, Wait Rose gets new customers of Partner and it helps the
company to attain their pre- determined goals. As the technology of the company is modern and
advanced now they are thinking to expand their business in other countries specially in the
developing countries so that they can rule the global market.
This collaboration is beneficial for Partners as well , because Wait Rose is one of the
oldest and iconic company. This company is present in many countries and by doing a strategic
alliance Partners also get the name and fame in the market. They do not have to spend ample of
money on the marketing and promotional activities. Without spending a lot of money this
company gets goodwill in the market and also the profitability of the company get increases.
So both the companies got positive impact of the collaboration and their name and
goodwill get increases although profitability of bot the companies hit up.
4. e commerce principles used by Waitrose
User friendliness:
It means that website should be navigated easily. Waitrose are working to make such
website which is user-friendly. Website should not include complex features which user cannot
use. More technical feature will turn off the customer as they are not aware of using it. Waitrose
have easy search options through which customer can search easily what they want. Despite
visiting each category then sorting them. Products which are listed by company gives full
information with images so that customers can easily decide whether to purchase or not.
Waitrose focus that products which are listed by them should look real because wrong
information can turn off the customer and can hurt company's reputation.
Responsive technology:
Company focus on developing responsive technology. Their website should be easy to operate.
HTML coding are ignored by company (Rangaswamy and et.al., 2020). When company apply
heavy coding then it slows website and take much time for loading. Substitute products are easily
available in the market so if they got irritate with slow processing then they can shift to the rival
company.

Addition of search column:
Search option is very important on the website because if customer will not get search option
easily then how he or she will search for the product. On the first page only Waitrose has given
search option. As customer will not visit every category for purchasing single product.
Consistent branding:
To increase awareness Waitrose carry branding so that can target their audience (Remane and
et.al., 2017). Through branding company can communicate about offers and discounts with
customers if they are coming with any.
Emphasize on security:
Waitrose is the company which focus more on providing better security to customers. They have
systems in build which ensure that customers private information will not leak. Company does
not share private information of customers with anyone (Wirtz, 2019). Payment method of
company is also safe. This is the reason they enjoy high customer loyalty. Company knows very
well that customer will not trust such company who does take care of data security. As if
customer private information which contains its account number etc. got leaked then he or she
can get into big trouble.
Minimum layout:
Waitrose believe in simplicity. The website of company is simple and easy to use. Company has
designed their website in such manner that all necessary information are given but with
minimum layout option. When company post their product then it involves all information of the
product. Waitrose ignores posting irrelevant information because it can confuse customers and
even misguide them.
Knowing the target audience:
To know the customers better Waitrose will do market research. Through market research
company will able to know the taste and preference of their targeted audience. When company
will come to know about customer choices than they can able to make such website which can be
easily used by customers. Through research only company will get idea that what options
customer can easily access. In order to give good customer experience they can check buying
habit if the customers.
Product descriptions:

Product descriptions should be properly mentioned by the company as it will give information to
the customers related to the product. Complete and authentic product description will help
company in increasing sales and profits (Sousa and Rocha, 2019). As more customers will get
attracted towards the company. Waitrose uses HD image so that product can look attractive.
Unique designing:
There is massive competition in the e-commerce sector and company's are struggling very much
in order to stand different from their competitors. Nowadays customer have many choices. So
company have to manufacture goods and services according to their demand. If company will
have unique designs then that will attract customers. Customer will click on the product which is
listed on company's website only if it is looking attractive. Along with unique designs Waitrose
also provide good services to customers so that they get good shopping experience. Company
can add offers and discounts as that can help in stopping customers for long time. When
customer will stay for long time on company's website than there are more possibility of
purchasing the product.
Efficient call to action:
company's objective of doing online business is to increase the conversion rate so that company
can generate more profits (Senyo, Liu and Effah, 2019). Efficient call to action is the focus of the
company. When customer will visit the website of the company then they must get what they are
searching for because they will not get what they wanted. Then there are chances that customers
can be shifted to the rival brand. More focus should be there on making website effective.
Recommendations
As digital business has become a need of the company, now many companies are using
technologies to give a new way of their old and traditional business so that they may increase
profitability (Bamel and et.al, 2021). Wait Rose is also implementing technology in their
business but they must improve their social media presence so that they can share their all the
latest news and updates to potential customer. With the help of social media and digital
marketing they can touch to all those people who are not the customers of Wait Rose, company
may give some discount offers to them so that they can become the loyal customer of Wait
Rose.

CONCLUSION
Through this report it can be concluded that digital business is the new era and
digitalization is the future of business. As everything have advantages and disadvantages both so
as with digital business. Waitrose is the big brand and for expansion they have decided doing
business online. It helps the company increasing online sales and also getting recognition among
large population. Although it has security concerns and threat of cyber security but if used wisely
then company can mitigate such issues. Report has evaluated digital business models like
freemium model, marketplace model which is used by Waitrose in order to enhance their
business. Report has also discussed impact of new collaboration relationships and strategic
alliance through digital technology. E commerce principles which include consistent branding,
minimal layout etc. are analysed in the report.

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Online
Digital Business Model – How Digital Transforms Value., 2021. [online]. Available through:
<https://www.garyfox.co/digital-business-model/>