Key Trends and Advantages of Digital Technology in Digital Business: A Case Study of Ebay

Individual report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Key trends and advantages of digital technology........................................................................3
Digital business models...............................................................................................................5
Collaborative relations and strategic alliances............................................................................6
Use of e-commerce principles.....................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital businesses are the businesses which have the use of technology in order to create
new value to the business model. The customer experience as well as the internal capabilities
makes contribution to support the core operations of the business. Digital business comprises of
the organisations which run on digital only platforms as well as the organisation which
transformed their business to digital techniques. Now a days people are spending most of their
time surfing online, this has shifted the ways of working a business and has put more importance
to the digital platforms and sources to earn the revenue. Digital business have evolved a lot in the
past few years from just selling products online (Khin, and Ho, 2019). One such digital company
is Ebay. This company has established itself at a good place in the market. Ebay is used to buy
and sell electronic items, cars, fashion apparel, sporting products and anything else which people
are looking to buy on the online platforms. Ebay has excel itself in covering a wide range of
categories for the products and has succeeded in attracting more and more customers coming
from different demographics.
MAIN BODY
Key trends and advantages of digital technology
Technology has evolved a lot in the past few years with a rapid speed. It helps in
changing the pattern fast and increase the progress in the way. Staying up to new and updated
technology related trends is very important for the companies running in the modern market
world. It helps in keeping the focus on future and developing accordingly. Some of these digital
technological trends are:
Artificial intelligence and machine learning: Artificial intelligence have created a lot
of buzz in the market place. It is the most popular and important digital technology trend as it
effects on how the people live and work in the initial stages (Pagani and Pardo, 2017). The
importance of Artificial intelligence is shown well in having a superiority in the images, the
speech recognition system and navigation applications are extremely helpful. Along with this, AI
also helps in analysing the interactions of people which is very useful in determining and
building the connections. This helps the companies like Ebay to predict the demand and needs of
their customer base and improve their services accordingly. AI helps in the authority of the
company to make better decisions related to the resource allocation and studying the changing

patterns of the customers. The behaviour of customers changes every time, AI helps in analysing
the data by making them enhance the personal life experience. Machine learning is the sub-part
of AI and is used in almost all type of business industries, especially in e-commerce business.
5G: The applications and benefits of 5G are in the ears of people from past very long
time but the demand to finally use it has increased a lot during the time of remote working.
Video conferencing and digital collaborations have become important parts of the lives of people
which have lead to the urge of having a reliable connectivity and bandwidth (Dornberger, 2020).
The business of Ebay relies on the working of phones, tablets and related other devices which
has increased the number of internet of numbers, also written as IoT sensors which has
highlighted the need for multi lane superhighways. Businesses like Ebay cannot take a chance to
be disconnected and thus the use of 5G have become a very important part as the solution to the
existing problems. 5G services are predicted to revolutionise the lives of humans.
Importance of image search: This trend in the digital technology helps in having a
incorporate image search technology on the company's online site helps the customers to have an
easy picture of the products they are looking to buy and with the help of that picture, they can
find the similar examples available on the company's site (Giones, and Brem, 2017). It helps in
attracting customers to the site by having a pricing strategy which is having the interested
product with a less price will help the company to potentially pick up the sale and generate and
extra revenue system.
Virtual reality: This trend has lead its users to have the experience the enhanced form of
environment. They help the customers to experience before they invest in the product. There are
many different forms of technology which are incorporated in the current and future human life.
Virtual reality has played a very important part in training, entertaining, education and even in
the process of marketing the products and services.
Advantages of using digital technology and managing the virtual business includes
having easy access to the market place and easy reach to the customers. Online market place
such as Ebay allows any person to have an online setup and to either shop or sell the products in
very less time. Working the business on digital terms makes the selling which avoids the need
for having an expensive retail store which involves having a customer facing staff and sales staff.
It allows Ebay to invest more in the marketing and having great customer experience on the e-
commerce site. Working a digital business eliminates the constraints coming from the traditional