Impact of Digital Technology on Business World: ASOS Case Study

This report analyzes the impact of digital technology on the business world with a case study of ASOS. It identifies emerging digital business models, e-commerce principles, and collaborative relationships. It also discusses the advantages and disadvantages of strategic alliances and new collaborative relationships.

Individual Report

Executive summary:
The aim of report is to identify the impact of digital technology in today business world.
Moreover the report will identify various emerging models that can be used by the quoted firm to
improve the performance in the future. Also, e-commerce meaning will be described in detail
along with principles that guide this platform. Further, collaborative relationship and strategic
alliance will be discussed in detail along with its advantages and disadvantages.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Overview of key trends and advantages..................................................................................3
2. New and emerging digital business model:..........................................................................5
3. Identifying the impact of new collaborative relationships through digital technology: .......7
4. Presenting e-commerce principles used by the organization:...............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital technologies are most popular in current era as various tools, systems, devices
etc. not only helps in providing information but also helped in making human work easier and is
time saving process. The present report is based on ASOS that is British online fashion and
cosmetic retailer that focusses on e-commerce activities and sells variety of goods such as
fashion clothes and branded products that are inspired by celebrity trends. The study will analyse
the meaning of digital business and will critically identify its advantages and disadvantages.
Moreover, various key trends and application of quoted firm will be discussed in detail.
Also, new emerging business models and its types in context of cyber security and ethics will be
evaluated. Further, impact of new collaborative relationships and strategic analyses on ASOS
will be explored so that better business decisions can be made in the future. Lastly, e-commerce
principles in relation quoted firm and application of these principles will also be discussed in
detail.
MAIN BODY
1.Overview of key trends and advantages
Digital business is a venture that incorporate all its operations and functional activity over
internet. This involve using the digital technology to deliver the business practices. The meaning
of digital business is simply delegating the services over internet and digital platform and
delegate it directly to the customers. This is certainly demonstrated as a fact that the digital
business channel is to ensure all the operation and function related to the business in the e-
commerce manner.
Advantage of digital business
The digital business is directly involve delivering the practices to the customer over the
internet. The key advantage is that today the world has changed immensely. The world of trading
is moving fast forwardly over internet to delegate all different business practices over internet.
The key advantage is that it could improve the efficiency and effectiveness of the business
operations delegate to the business venture. The digital business house get to interact directly
with the end customer in order to delegate all different business operations. This is a major

advantage associated with the digital business channel that they get to deliver all its operation
and function over internet (Crespo Cuaresma and Lutz, 2021). The direct connectivity with the
end customer is established with the potential customer in market. This is about to ensure a
proper effectiveness of the business practices. Resource management also get better as the digital
business houses require less resource in comparison to other business model that further improve
the management of resources for the business venture. Further the digital business houses get to
interact directly with the potential customer in market that further support the business venture to
delegate all its practices in the best way possible. Dealing with the issue of customer is a major
challenge that business houses face and digital business models allow the management to
directly interact with the potential customer which further direct the business venture to
overcome all issue face by customer easily.
Key trends of digital business
There are various trends that utilises by the digital business houses. Data analytics is one
of the major trend that is explored by the digital business houses like ASOS. This is about to
interpret and analysis the whole information related to performance of the business venture. This
is among the major trend that is belonged to the digital business houses. Customer data platform
is also associated with the digital trend belong to the digital business houses. Digital security is
another major trend that involve protection of data and information related to the business
venture (Leonhardt and et.al., 2017). This technique strengthen the data security that further
allow the business venture to ensure all its various business objectives. Artificial intelligence is
another key technique that effectively used by the ASOS in order to deliver the business
function,. This technique is used to interpret the data and information that will further explore by
the business house to achieve the overall business objectives. This trend has supported the
business houses to effectively interpret and analysis the whole information and data and support
the business venture to ensure proper mitigation of business objectives.
Application of digital trends
The digital marketing practice allow the ASOS Company to achieve all its various
business objective. Company get to increases its sales potential or capacity in against to deliver
the all different digital techniques. The artificial intelligence technique allow the business
venture to assess the records related to sales, customer choices, taste and preferences that further
direct the business venture to formulate different strategies. These technique also supported the

organization to understand the need and demand of customer and perspective of customer
towards the business model adopted by the business venture and further to delegate all different
business objectives of company (Preniqi, Sylaj and Krasniqi, 2020). These trends further
supported the business venture to prepare aim attractive and effective marketing campaign to
deliver the need of the business venture., This is among the major advantage that business entity
could incorporate in the business. Formation of effective marketing campaign is among the core
advantage company could get against launching the digital marketing campaign. Management of
the ASOS Company also design the product development strategies and also usage these
technique to launch the new product in market. Introducing new product require understand of
the need of customer and identify all different features of business. The digital trends lie data
interpretation direct the ASOS Company to get to know all the need of customer and also to
understand about the feasibility of the product to entertain success in market.
2. New and emerging digital business model:
A business model is characterized through innovation done by any digital business. They
are based on those services that are new to the market and hence customers are willing to pay
certain amount for the digital service (
Emerging business models, 2021).Moreover, they create
unique customer value in terms of monetary measures. Also, the value of business is created
using digital technologies. The main aim of these models is to create significant advantage that
customers are ready to pay little higher prices.
Types of digital business models.
With the growing cases of cyber and security there are lot of models that are adopted by
various organizations based on the goals it wishes to achieve in the future. Cyber security is
application of technologies that helps in protecting and controlling the risk of cyber-attacks
against unauthorized use by third party.
Free model:
It is also called ad supported model as idea is to offer service according to the customer
choices. Also, customer who are using services through this platform input valuable information
about themselves that helps businesses to display ads according to the specific target audiences
(Oláh and et.al., 2019). However, using these model chances of data leak and misuse of
information is common if proper security measures are not developed in its system.
Freemium model:

This is the most common seen model that is used in the business world. Also, users in
this get free access to the basic version of the product that is limited in number of ways.
Moreover, if the user wants to use more features than it need to upgrade the version by paying
some amounts (Xu and et.al., 2020). Amount can be paid in the form of monthly subscription or
yearly pack that allows users to experience advanced features after the trail days get overs. Also,
in this model there is possibility of cloud attacks, software vulnerabilities, AI attacks etc. c
On demand model:
It is the model where there is no physical product but it relates to virtual product or
service. Here the demand of product is fulfilled through providing immediate goods and services.
Moreover, on demand economy works at greater speed and provides ease of solutions. For
example: Online video stores that allows users to consume particular video for certain period.
E- Commerce model:
It is the best known model as it is helpful in generating large amount of revenues even
during the times of pandemic. Also, through this model users can almost buy anything from
around the world that was otherwise not possible using old traditional methods of selling in
particular market (Tokar , Jensen and Williams , 2021). Further, chances of malware attacks are
also there in this model as hackers might steal, destroy and remove data on the computers.
Marketplace model:
Here the sellers and buyers use third party platform to trade goods and services but this
model biggest problem is because of its complexity and dynamics. Therefore, this type of
platform needs to carefully determine supply and demand at the same time so that both sides can
be attracted. Such types of model have less security related problems as but in-spite of it users
using same passwords for multiple accounts can cause various problems in the future.
Open source model:
This model is free to download, use and open for community worldwide to use. For
example : Firefox that is free and can be used by lot of people hence it majors royalties are
generated from the search engines. Moreover, it also gets various free resources to improve the
services
Presenting use of emerging business models by ASOS:
The model that is used by ASOS is E-commerce platform based model where all the
products are available under one roof. For instance: Customers and fashion companies buy and

sell products using similar platform that allows them to consume high quality and reasonable
price products (Zhu , Mou and Benyoucef , 2019). Moreover, it also uses the multi -sided
marketplace model as it allows buyers and sellers to easily interact and trade with each other in
the easiest manner. Further, it operates on vast operating model so that demand of each customer
can be fulfilled. For this purpose it manages developing and designing its own label offerings so
that every product item can be provided in the appropriate time as possible.
3. Identifying the impact of new collaborative relationships through digital technology:
New collaborative relationships occurs when two or more people work together in order
to achieve certain goals. Thus, it is complex process as both parties share certain resources such
as knowledge, finances and people. The aim of such relationships is that all parties should
mutually benefit from working together.
Strategic alliances on other hand are arrangement between two companies that undertake
a mutually beneficial project and retain their individual independence. This agreement is less
complex than other as new business entity is not created. Such type of alliances are register
either to expand into new regions, improve the existing product line or to stay ahead in the
competition (Bandara and et.al., 2019). Also, relations within two parties may be either formal or
informal or be on short term or long term basis depending upon the objectives that need to be
attained.
Advantages and disadvantages:
Some advantages of strategic alliance or new collaborative relationship is that:
Sharing resources and expertise:
It helps in sharing resources so that better knowledge related to the product, sales and
marketing can help increase the market share. Also, deeper understanding and expertise can
develop new ways to sell the product digitally.
New market penetration:
Strategic alliance digitally give access to new markets with solution as when company
going global often work with trusted local partner of that market so that advantage of emerging
market can be taken with proper polices rules and procedures by business.
Expanded production:

It is very helpful for alliances that work in digital technology that they can easily improve
the production time and also process can be made faster through increased capabilities and scale
that helps to meet the demands of the customers in quick manner.
Improves Innovation:
Partnering with the right alliance can help to stay ahead in competition as new solutions
can make revolutionary and creative change in the marketplace. This will also helpful in
enhancing the customer experience and become game changer for the overall market place.
Apart from the advantages there are certain disadvantages that are part of strategic
alliance that are described as follows:
No control:
Strategic alliance requires honesty and transparency that is not easy task as it cannot be
built in short period (Turban and et.al., 2018). Hence, without proper contribution from both the
parties an alliance may suffer very much and may incur losses in the future.
Increased liability:
There is increased risk on both the parties if operation or any work process related to any
department does not perform well and create unhappy customers. Moreover, delays in product,
loss of sales, poor quality are also part of liability on both alliances that may reduce the overall
profits of both the parties.
Poor communication:
Chances are that companies might have poor communication because lack of bonding
that may result in improper decisions and loss of company credibility in the market. Moreover,
certain strategic decisions cannot be made between alliances due to limited time availability from
either of the parties.
Presenting the use of collaborative relationships and strategic alliance:
Currently ASOS is partnered with various digital channels such as twitter, face book that
act as digital assistant that helps in carrying out various digital works smoothly. Moreover,
ASOS use various digital technologies so that outstanding customer services can be provided so
that it will help in reaching worldwide and also enhance customer satisfaction (Vakulenko and
et.al., 2019). Also, quoted firm can partner with new technologies group and is currently entered
into athletic wear product line that would help to foster the business growth and improve the
team interaction. Also, quick access to information at workplace will help the ASOS to improve

its current workflow so that right files are available at right time. Further, improved productivity
helps in saving search time and also team members can be met within seconds.
4. Presenting e-commerce principles used by the organization:
It refers to business model that help companies and individuals to buy and sell goods over
the internet. E-commerce operates in four segments such as B2B, C2C, B2C; C2B can be done
through computers, tablets, smart devices etc. (Pagani and Pardo, 2017). E-commerce platform
has helped small business to grow in wider markets and thus more efficient distribution of
channels for products and services can be established. E -commerce has changed the way to shop
products as it can be easily delivered at homes with just one click.
E- Commerce principles:
There are certain principles that need to be taken into consideration. Some of them are
briefly discussed as below:
 Make the site mobile friendly so that more users can shop the products easily. This way
large amount of goods can be sold in different regions without many efforts.
 By improving the page loading speed where users are not frustrated with load time and
switch to other options that are available in the market.
 Streamlining shopping process so that users do not have to create new user account every
time they add products in the shopping cart.
 Using good UX design so that most of the users are attracted towards the content and
layout otherwise they will be least interested to engage with the organization.
 Make payment mode easy so that most of the users are interested in buying products
easily without much efforts.
Applying principles on ASOS:
It is well-known that ASOS is the biggest platform for clothing. Its success is achieved by
focusing on needs of customer rather than needs of competitors. Also, applying customer centric
approach it gives customer’s freedom by providing unique customer recommendations. This can
be also done through creating Omni channel experience for customers. Moreover, the best
principles include scheduling the post purchase emails so that purchases can be confirmed and
timely updates can be provided on shipping period and also product reviews can be gathered so
that future changes can be made (Mitchell and Kan, 2019).

Also, positive brand experience is created only when site is loading quickly without any
buffering problems. Further, quick replies and same day shipping also helps to build brand
reputation for quoted firm that allows it to stay ahead in competition. Moreover, ASOS was able
to optimize their site by recommending those products that are currently popular in the market
and are often purchase together with other items (Entman and Usher, 2018). Also, the site must
be easy to navigate so that customers can browse easily across various pages. High quality
product images also make customers attracted towards products as product look, design and
colour can be easily identified and analysed through websites.
CONCLUSION
From the above report it can be summarized that ASOS is well-known fashion Brand
Company that has established market in the UK through effective use of digital technology.
Moreover, the report had analysed various emerging business models that can be used by the
firm depending upon the operations it is carrying out. Further, the impact of new collaborative
relationships and strategic alliances on ASOS had also been discussed in detail. Lastly, the
report has summarized the use of e-commerce platform and its principles in context of quoted
firm so that better business decisions can be made in the future.

REFERENCES
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