Impact of Digitalization on Business Success: Analysis of Mega Trends and Burberry Case Study

The report discusses the impact of digitalization on business success and focuses on the case study of Burberry. It analyses the positive and negative impacts of digital technology and artificial intelligence on the business landscape. The report also highlights the importance of digitalization in gaining a sustainable competitive advantage.

Global challenges

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Demonstration of research, analysis and evaluative insight into at least ONE megatrend and
the impacts in general on the business landscape...................................................................3
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
The Report aims to analyses the impact of Mega trends on business success in modern
market. Mega trade refers to new emergent technology and changes which impact on current
business solutions. The globalization is all about providing good and services to the other parts
of the world except the local market. It impacts through the Mega Trends which has a lot of
interference and contribution in macroeconomic factors. The world is surrounded with Global
Mega Trends which create future for the business (Lichtenthaler, 2021). In traditional time,
Mega Trends like digital technology, Artificial Intelligence and Robotics were not in much
Trend as there was face to face interaction with customers to make sales. This report is going to
focus on digitalization which is the most affecting Mega Trend on business landscape. They will
be discussion about how it creates challenges and impact for the business and gaining sustainable
competitive advantage. Burberry is the chosen organization for analyzing how the digitalization
and artificial intelligence has took over the market and bring challenges for the company.
Burberry is a well known luxurious brand of clothing and fashion accessories established in UK
in the year 1956.
MAIN BODY
TASK
Demonstration of research, analysis and evaluative insight into at least ONE megatrend and the
impacts in general on the business landscape
The digitalization is become an important part of every business in order to help in
improving efficiency and productivity for future growth. The current modern market becomes
totally dependent on digital technology in terms of sales promotion customer relations delivery
and various other benefits. Digitalization gives rise to globalization through which the business
could easily enter into any market and enhance their customer based. Digitalization involves use
of artificial intelligence Robotics cloud services and makes every possible automation facilities
that provide affective Customer services. There is a lot of positive impact of digitalization on
business such as reduction in unemployment improves quality of product and services, effective
delivery and public facilities write in economic development (Cavusgil, 2022). On the basis of
Global Business context that digitalization required automation services which include Artificial
Intelligence and robotics that have a great impact on business and escape. A company gets

established to provide all the possible services to the customer who saves the time cost and
efforts. Therefore, artificial intelligence is the best example of digital technology that includes
machine learning and automation services which is used by business on their website and
application. With the help of AI Technology the company could respond to customer query
within least time duration and connect an automation mode through which customer get instant
response and does not get disappointed. In the current time of Huge population and complex
market individual demand and wants must be analyses buying attentive and provide 24 hours
services to the customers (Esposito, and Tse, 2018). So that AI and robotics has held in shaping
the future of business landscape.
Some of the recent example of digitalization for the business and escape is that the data is
not going to store in paper or internal hardware where as it will be stored safely and securely in
data protected software. Also, cloud computing and Robotics helps in managing these data and
information kept safely from any data hackers which can impact on business performance. Cloud
Computing is basically becomes essential software. For every business comma Cloud Computing
is become an essential software which helps in gaining competitive advantage and who has a lot
of customer engagement on daily basis. It impacts on team collaboration and performance
through which the data can be backup and saved automatically (Lustig, and Ringland, 2019).
There are many changes has been a curd through digital technology which has countless benefits
for the business landscape. By using artificial Intelligence and sound computing, a business can
increase efficiency into their all over department as the human resource will not be busy in
attending and responding to each customer query which will be done through AI software and
machine learning. The digital technology will mitigate the human error and provide best efficient
services to reduce operational cost.
Apart from the positive point of view, digitalization also impact negatively on the
business landscape. Many Digital Services fails in case of small businesses as it require high
investment and cost for using AI software and robotics. It mainly generates issues of privacy
concerns and trustful sources which create confusion among customers before buying goods and
services from the organization. This mega trend has a lot of barriers which gives inside about
using the technology in the supervision of experts (Hajkowicz, and Dawson, 2018). The
organization need to address these issues in an effective manner to take advantage of Technology
in order to serve all over the world. Therefore, it has analysed that the business needs to work

according to the Trends into market to be active and customers. Following trends is one of the
major key elements for companies to remain in the same society and culture in which their
business operates. This Megatrend is not only for specific business but also coverage and
argument upon all the companies functioning into the market. After the covid 19 pandemic, use
of online services is going rapidly in which customers find alternative ways to get home delivery
and easiest way of getting products and services at right prices. Online platforms are serving
almost every individual state by providing food, clothes furniture equipments and every kind of
products at the door steps. This show that the future of business is going to be all digital and met
averse in which society will become familiar with all the Technologies and make it a part of the
daily routine. The need of digital software’s is going to raise day by day as customers are fond of
booking through mobiles, book their favourite food of clothes without visiting store. Business
landscape and safe and secured if the technology is used in right way and under proper monitor
and controlling.
Burberry is a British fashion company which manufacture luxury items for their targeted
customers. It is headquartered in London but follow all the current market trends which help
them in fulfilling the demands of the customers. It provides luxury items to upper class people
which involves accessories, clothings, cosmetics and perfumes. Their outdoor attire and trench
coats are very famous among the people because of higher quality material (Denisova-Schmidt,
2020). It is iconic brand which provides unique and attractive items to their customers which is
different from their competitors. Burberry uses digital technologies in their operations which
help them in creating items which are highly demanded in the market. They have acquired large
market area because they offer products which are highly innovative and attractive. Digital
technology change the way of operations and make them better which results in high
productivity and improved performance. It eliminates the gap of customers and organisations
which help them in understanding the tastes and preferences of the customers. In order to provide
luxury and innovative products, Burberry use artificial intelligence and image recognition
technologies. Various challenges can easily overcome with the help of technology as it maintain
bridge between the production and outcome. Digital technology help Burberry in interaction with
their clients with the help of live chat, virtual client events and virtual appointments. Burberry
uses digital technology for marketing and promotion of their products and services in effective
manner. It helps them in elimination of difficulties and challenges which results in higher

revenue generation. Various digital media platforms like Facebook, Instagram, YouTube and
Twitter helped Burberry in promoting their products as they do not invest huge amount in their
marketing activities. Use of digital technology and artificial intelligence help Burberry in
enhancing the experience of their targeted customers. They have smart mirrors which help their
audience and customers in interacting with luxury brands in effective manner.
This mega trend help organisation in shaping their operation towards growth and
success. It helps them in gathering and collecting relevant information about the current market
trends which help them in offering products. Digital technology mega trend involves various
factors such as artificial intelligence, up gradation and innovation which assist them in increasing
the customer base. Digital technology helped Burberry in overcoming various challenges which
they are facing in the production by providing them innovative ideas (Gamage and et.al., 2020).
Digitalization provides separate space to the customers of Burberry so that they can interact with
them in easy manner. Innovative idea of Burberry includes customization of products according
to the needs and demands of the customers. It provides customers in shopping through online
platforms which save their time and efforts which is a positive aspect. Customers of Burberry
can use video chat with the stylists and executives of Burberry so that they can get ideas how
they can style themselves. They have hired experts for the designing of the clothes and other
items which help them in creating innovative and unique products which can acquire large
market area (Myers and et.al.2018). They use economies of scale in their production with the
help of tools and technologies. They have adopted the trends which are highly demanded by the
targeted people which results in higher revenue generation. Their products created strong brand
image in all over the world because they use high quality material in their production process.
Initially they owns physical store but after the emerging of digital mega trend they have set up
their online stores which increase the reach of Burberry in large market area (Irwin and Dawson,
2019). The pictures and images which they use for promotion and marketing are in high
dimension which attracts large number of potential customers. With the help of technological
advancements Burberry can easily make strategies which help them in competing with their
competitors.
The innovation which Burberry have used in their products helps in becoming innovative
fashion brands which is famous among celebrities also. They have used automation and artificial
intelligence in their operations that they perform live chat with customers and help them in

finding right products which is best suited to them. The chatbot strategy of Burberry is very
unique innovation which satisfy the needs of their customers in best possible manner.
Communication channel help them in maintaining healthy and good relationship with their
customers which is essential in order to satisfy their needs (Matyushenko and et.al., 2018). They
also provide discounts and vouchers on regular basis which help customers in buying products
which they have saved in their bucket list. Burberry occasionally provides discount to their
regular customers which engage them for longer time period. Their physical stores include
virtual models that assist them by trying clothes and accessories which customers want to try.
With the help of digital technology, they have collaborated with various giant and famous
manufacturers and suppliers who can help them in providing higher quality raw material. These
innovative ideas help Burberry in sustaining for longer period of time without any difficulties in
their operations. They focus on long term relationship with their customers, clients and suppliers
which is positive factor of sustainability (Morell and Gradskova, 2018). Digital technology assist
in proper communication on real time basis which eliminate the errors and miss understanding
among all the inter related elements of the business. They have invested in their digital
technologies which results in higher innovative and unique products which differentiate them
with their competitors in all over the world. Innovation help Burberry in sustaining for longer
time period by adopting technologies and strategies which assist in cut down of excessive cost.
Digitalisation in today's time is playing an significant role in the success of the organisation
and the companies. This has affected the operations of the leaders and the managers to a great
extent. One of the main impact that digitalisation has put on the leaders is that leading the
virtual teams across the globe (Partridge, Deelen, and Slagboom, 2018). This means that
carrying out the work and operations by communicating with various teams through digital
platforms. In relation to the leaders of the Burberry company, digitalisation will affect the
operations of the company in many ways because motivating the employees through virtual
meetings can be difficult in order to accomplish the task. On the other hand, it can give so much
benefit also to the company because conducting meetings and work using the digital platforms
saves so much cost for them. Managers of the company can face difficulty in conveying he plans
and strategies to the employees as well as the leaders by making teams virtually. One of the main
advantage that the leaders of the Burberry company can take of the digitalisation in the future is
the development of the employees (Ainscow, 2020). They can give proper training and

development by using various digital techniques that will results in more generation of the
revenue for the company. This will help the managers to execute the plans and conveying the
ideas to different employees by using digital platforms in the future. This facilitates the company
to achieve the goal effectively in the future. Digitalisation will help the Burberry company to
connect with the various skilled employees in across the globe which results in the achievement
of the future goals of the company (Coraci, and et.al 2020). Leaders of the company will get
much benefit of the digitalisation in because they will be able to lead the teams effectively.
CONCLUSION
From the above report, it has concluded that digitalization is one of the crucial megatrend
which can affect the organisation in both negative and positive way. It can help the company to
attract various new customers to boost the sales. They can improve the overall performance of
the business in an effective manner. On the other hand, in this report there will be brief
discussion about the trend of digitalization. It helps the company to achieve necessary goals and
objectives in the market. It will also improve their sustainable performance in the industry.
Along with that, there will be brief discussion about various innovations which the company can
do in order to fulfil various targets. It has also analysed that through these ideas and approaches
the organisation could offer better services to the customers and maintain a positive brand
integrity in the market. There are various approaches which could help the organisation to
maintain appositive brand integrity. They could also gain a competitive advantage from other
competitors which are present in the industry. In this report it has also analysed that the use of
artificial intelligence technology can help the company to achieve greater performance. they
could also offer best goods and services in the market.

REFERENCES:
Books and Journals
Denisova-Schmidt, E., 2020. Introduction: Corruption in Higher Education: Global Challenges
and Responses. In Corruption in Higher Education (pp. 1-12). Brill.
Gamage and et.al., 2020. A review of global challenges and survival strategies of small and
medium enterprises (SMEs). Economies, 8(4), pp.1-24.
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investigating ransomware attacks and how regulation can help. Journal of money
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Matyushenko and et.al., 2018. Development prospects of Ukraine's foreign trade in agricultural
products in the context of European integration and global challenges. J. Advanced Res.
L. & Econ., 9, p.1343.
Morell, I.A. and Gradskova, Y., 2018. State-socialist legacies, global challenges and (re)
building of tradition. Gendering Postsocialism: Old Legacies and New Hierarchies.
Myers and et.al., 2018. Optimal theory’s contributions to understanding and surmounting global
challenges to humanity. Journal of Black Psychology, 44(8), pp.747-771.
Cavusgil, S.T., 2022. Megatrends and international business. In Megatrends in international
business (pp. 11-21). Palgrave Macmillan, Cham.
Esposito, M. and Tse, T., 2018. DRIVE: the five megatrends that underpin the future business,
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decade of digital disruption.
Lichtenthaler, U., 2021. Digitainability: the combined effects of the megatrends digitalization
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Lustig, P. and Ringland, G., 2019. Megatrends and how to Survive Them: Preparing for 2032.
Cambridge Scholars Publishing.
Partridge, L., Deelen, J. and Slagboom, P.E., 2018. Facing up to the global challenges of
ageing. Nature, 561(7721), pp.45-56.
Coraci, and et.al 2020. Global approaches for global challenges: The possible support of
rehabilitation in the management of COVID‐19. Journal of medical virology.
Ainscow, M., 2020. Inclusion and equity in education: Making sense of global
challenges. Prospects, 49(3), pp.123-134.