Emerging Trends in Digital Business and Adaptation Strategies for Catalyst
Added on 2022-12-27
24 Pages3741 Words97 Views
MarketingDesign and Creativity
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REPORT
INTRODUCTION
There are numerous growth and development in technology that provide opportunities to
business to delivered better services to customers so that their wants can be satisfied. Moreover,
digital business are making best advantages of information technology in order to effectively
operate its daily operation and earn maximum market share. This report is based on Catalyst that
is popular digital marketing firm operating in UK established in 2011 having more than 40
employees that are working for growth and expansion of firm. Company focused on providing
qualitative services to customers with an objective to earn profitability. The main aim of the
report is to understand the emerging trends in digital business and the way company can adapt
them to enjoy high customers satisfaction. It has highlighted crucial points related to advantages
and disadvantages of digital business, evaluates new and emerging digital business models.
Furthermore, consists information related to impact of new collaborative relationship and
strategic alliance through digital technology. At last discuss about e- commerce principle that
could be used by organization while operating its business in order to get more return.
MAIN BODY
1. Overview of digital business
Digital business is use of computer and other electronic devices to delivered better services to
customers so that their wants can be satisfied in better manner. With development in technology
and changes in external trends, companies are making use of digital platform to market their
products and services. Such as Catalyst is digital marketing company that offers services like
SMS marketing, digital marketing and search engine while operating its numerous functions
(Zimmermann and et.al., 2021). Company have make the best use of innovative technologies and
method to expand its business across worldwide and retained competitive positioning. There are
numerous advantages as well as disadvantages of digital business that needs to be considered by
Catalyst for smooth operation of company. Such as:
ADVANTAGES OF DIGITAL BUSINESS
1. Large Market: The first and foremost advantages of digital business is that it
provide opportunities to company to expand their operation across worldwide. Digital
business provide opportunities to customers to easily make purchase of products at
anywhere and anytime. Likewise, Catalyst has advantages of attracting people from
There are numerous growth and development in technology that provide opportunities to
business to delivered better services to customers so that their wants can be satisfied. Moreover,
digital business are making best advantages of information technology in order to effectively
operate its daily operation and earn maximum market share. This report is based on Catalyst that
is popular digital marketing firm operating in UK established in 2011 having more than 40
employees that are working for growth and expansion of firm. Company focused on providing
qualitative services to customers with an objective to earn profitability. The main aim of the
report is to understand the emerging trends in digital business and the way company can adapt
them to enjoy high customers satisfaction. It has highlighted crucial points related to advantages
and disadvantages of digital business, evaluates new and emerging digital business models.
Furthermore, consists information related to impact of new collaborative relationship and
strategic alliance through digital technology. At last discuss about e- commerce principle that
could be used by organization while operating its business in order to get more return.
MAIN BODY
1. Overview of digital business
Digital business is use of computer and other electronic devices to delivered better services to
customers so that their wants can be satisfied in better manner. With development in technology
and changes in external trends, companies are making use of digital platform to market their
products and services. Such as Catalyst is digital marketing company that offers services like
SMS marketing, digital marketing and search engine while operating its numerous functions
(Zimmermann and et.al., 2021). Company have make the best use of innovative technologies and
method to expand its business across worldwide and retained competitive positioning. There are
numerous advantages as well as disadvantages of digital business that needs to be considered by
Catalyst for smooth operation of company. Such as:
ADVANTAGES OF DIGITAL BUSINESS
1. Large Market: The first and foremost advantages of digital business is that it
provide opportunities to company to expand their operation across worldwide. Digital
business provide opportunities to customers to easily make purchase of products at
anywhere and anytime. Likewise, Catalyst has advantages of attracting people from
different parts of the world that lead in enhancing market share as well as profitability
of company.
2. Better customers experience: Another advantages of digital business is that it lead in
providing better customers experience to people. Through making use of information
and innovative technologies company are able to provide quick and timely services to
range of individual that are living in society. Likewise, Catalyst is able to enhance
customers satisfaction and loyalty by making use of innovative technologies
(Bressanelli and et.al., 2018).
3. Lower cost: Digital business are also getting benefits of lower cost as companies
does not have to make additional expenses in order to have physical stores. Moreover,
unnecessary expenses are eliminated that lead company such as Catalyst in saving
cost and enhancing overall profitability.
4. Increase sales and profitability: It is also one of the advantages that is enjoyed by
digital business as they have opportunities to sell products to more and more
customers in limited time as well as cost. Furthermore, companies are able to make
personalized content, message in order to convert maximum individuals into
customers of firm. So, Catalyst digital business helps in increasing its sales volume
and profitability by adding more and more individuals in the firm and retaining them
for longer time frame.
Despite of so many advantages of digital business there are some disadvantages that has
to be known by Catalyst in order to promote its operation. Therefore, disadvantages of digital
business can be illustrated as follows:
1. Increase competition: With innovation in technologies, many companies are trying to
make use of digital marketing techniques to attract more customers in the organisations.
Catalyst is facing situation of high competition as there are many other firms that are
providing digital support to business so that they can achieve their end goals in the best
possible manner (Periáñez-Cañadillas, Charterina and Pando-García, 2019).
2. Security and privacy issue: Another disadvantages of digital business is that there is
high threat to security and privacy of business. There are various individuals that like to
stole crucial information of company for various purposes so it cause harm to security
and privacy issue related to personal information. So, Catalyst manager needs to take
of company.
2. Better customers experience: Another advantages of digital business is that it lead in
providing better customers experience to people. Through making use of information
and innovative technologies company are able to provide quick and timely services to
range of individual that are living in society. Likewise, Catalyst is able to enhance
customers satisfaction and loyalty by making use of innovative technologies
(Bressanelli and et.al., 2018).
3. Lower cost: Digital business are also getting benefits of lower cost as companies
does not have to make additional expenses in order to have physical stores. Moreover,
unnecessary expenses are eliminated that lead company such as Catalyst in saving
cost and enhancing overall profitability.
4. Increase sales and profitability: It is also one of the advantages that is enjoyed by
digital business as they have opportunities to sell products to more and more
customers in limited time as well as cost. Furthermore, companies are able to make
personalized content, message in order to convert maximum individuals into
customers of firm. So, Catalyst digital business helps in increasing its sales volume
and profitability by adding more and more individuals in the firm and retaining them
for longer time frame.
Despite of so many advantages of digital business there are some disadvantages that has
to be known by Catalyst in order to promote its operation. Therefore, disadvantages of digital
business can be illustrated as follows:
1. Increase competition: With innovation in technologies, many companies are trying to
make use of digital marketing techniques to attract more customers in the organisations.
Catalyst is facing situation of high competition as there are many other firms that are
providing digital support to business so that they can achieve their end goals in the best
possible manner (Periáñez-Cañadillas, Charterina and Pando-García, 2019).
2. Security and privacy issue: Another disadvantages of digital business is that there is
high threat to security and privacy of business. There are various individuals that like to
stole crucial information of company for various purposes so it cause harm to security
and privacy issue related to personal information. So, Catalyst manager needs to take
necessary steps to remove security and privacy issue for effective operation of business in
external environment.
3. Higher transparency of pricing: It can be stated that customers can easily compared
prices, quality of products offered by company thereby there is high transparency of
pricing. Thus, company like Catalyst has to face tough competition in influencing more
number of customers as they have more alternative options to be select for fulfilment of
their needs (Cianni and Steckler, 2017). Thereby manager has tried to set appropriate
pricing for its services so that maximum people are attracted to be part of company.
4. Lack of experience and talented individuals: One of the disadvantages of digital
business is that there are lack of experience and talented individual that has capabilities to
promote business through digital technologies. Therefore, Catalyst in order to avoid this
disadvantages needs to higher individuals that can easily promote and handle operation of
company by making use of digital technology.
So from the above study it can be stated that all these are some of the advantages and
disadvantages of digital business for Catalyst.
2. Critically evaluation new and emerging digital business model
Digital business are firms that are adapting to new technologies and strategies in order to
offer more better and unique products and services to customers. Different digital model have
different characteristics that can simultaneously applied, furthermore digital business models are
based on services new to be market (Gil-Gomez and et.al., 2020). At last, it can be stated that
this model helps in creating unique customers value and enhancing brand image of firm.
Therefore, various new and emerging digital business model can be illustrated as follows:
1. Freemim Model: It is type of digital business model that offers customers both extra-
cost services and complementary services to people. In another words, it is model that
explained that customers received digital services free of charge, or they need not have to
pay extra cost for them. Therefore, as per this model Catalyst as business ethic needs to
provide free services to customers so that they are motivated to be part of organisation.
So, it ethically helps in providing maximum value to customers than actual operating cost
that has to be bear by company (Cianni and Steckler, 2017). At the same time company
has to ensure that it does not perform any unethical practices in order to attract customers.
external environment.
3. Higher transparency of pricing: It can be stated that customers can easily compared
prices, quality of products offered by company thereby there is high transparency of
pricing. Thus, company like Catalyst has to face tough competition in influencing more
number of customers as they have more alternative options to be select for fulfilment of
their needs (Cianni and Steckler, 2017). Thereby manager has tried to set appropriate
pricing for its services so that maximum people are attracted to be part of company.
4. Lack of experience and talented individuals: One of the disadvantages of digital
business is that there are lack of experience and talented individual that has capabilities to
promote business through digital technologies. Therefore, Catalyst in order to avoid this
disadvantages needs to higher individuals that can easily promote and handle operation of
company by making use of digital technology.
So from the above study it can be stated that all these are some of the advantages and
disadvantages of digital business for Catalyst.
2. Critically evaluation new and emerging digital business model
Digital business are firms that are adapting to new technologies and strategies in order to
offer more better and unique products and services to customers. Different digital model have
different characteristics that can simultaneously applied, furthermore digital business models are
based on services new to be market (Gil-Gomez and et.al., 2020). At last, it can be stated that
this model helps in creating unique customers value and enhancing brand image of firm.
Therefore, various new and emerging digital business model can be illustrated as follows:
1. Freemim Model: It is type of digital business model that offers customers both extra-
cost services and complementary services to people. In another words, it is model that
explained that customers received digital services free of charge, or they need not have to
pay extra cost for them. Therefore, as per this model Catalyst as business ethic needs to
provide free services to customers so that they are motivated to be part of organisation.
So, it ethically helps in providing maximum value to customers than actual operating cost
that has to be bear by company (Cianni and Steckler, 2017). At the same time company
has to ensure that it does not perform any unethical practices in order to attract customers.
While providing free services to customers, company needs to ensure that cuber security
is maintained so that no harm can be caused to individuals in any circumstances.
2. Market place model: It is another model of digital business that specified about the way
it connects buyers and sellers through common platform. Company get revenue through
commission/ brokerage fees likewise membership fees that is get through advertisement
services. Thereby, Catalyst while connecting with sellers as well as buyers need to take
necessary steps to ensure protect crucial data of customers. It should behave ethically
while connecting with people such as share all accurate and trust information about
products as well as services. So that no cheating can be done with people, and they can be
remained happy and satisfied for longer time frame (Arora and et.al.,2020). In another
words, company ensure that people can free share their feedback, review and comments
related to organisation and its products. Moreover, enhance its cyber security and
followed ethics while performing its function for better return and satisfaction of
customers beyond their needs.
3. Free offering: It is another new and emerging digital model that contribute in evaluating
the consumer data for personalized or advertisement offers. Thus, it makes use of lot of
interesting information of customers in order to design particular marketing strategies that could
be used for growth of business. So, in context of this model, Catalyst firm manager needs to
ensure that it take consent of people while making use of personal information of customers for
different purpose. As it is ethical and moral principles to abide by company while promoting
business through digital technology for fruitful outcome (Barsukov and et.al., 2018). Moreover,
company need to work on its cyber security while providing services to customers so that
nobody else can make misuse of information in any circumstances.
3. Impact of new collaborative relationship and strategic alliances through digital technology
Collaborative relationship can be defined as when two and more than that work together
as team for achievement of common goals of company. So, it is complex process that forces two
people or organization to work in group and listen, communicate with each others so that
company can retained its competitive advantages. Strategies alliance is arrangement between two
companies regarding the specific project while maintaining its independences. So, the impact of
new collaborative relationship and strategies alliances by making use of digital technologies by
Catalyst can be illustrated as follows:
is maintained so that no harm can be caused to individuals in any circumstances.
2. Market place model: It is another model of digital business that specified about the way
it connects buyers and sellers through common platform. Company get revenue through
commission/ brokerage fees likewise membership fees that is get through advertisement
services. Thereby, Catalyst while connecting with sellers as well as buyers need to take
necessary steps to ensure protect crucial data of customers. It should behave ethically
while connecting with people such as share all accurate and trust information about
products as well as services. So that no cheating can be done with people, and they can be
remained happy and satisfied for longer time frame (Arora and et.al.,2020). In another
words, company ensure that people can free share their feedback, review and comments
related to organisation and its products. Moreover, enhance its cyber security and
followed ethics while performing its function for better return and satisfaction of
customers beyond their needs.
3. Free offering: It is another new and emerging digital model that contribute in evaluating
the consumer data for personalized or advertisement offers. Thus, it makes use of lot of
interesting information of customers in order to design particular marketing strategies that could
be used for growth of business. So, in context of this model, Catalyst firm manager needs to
ensure that it take consent of people while making use of personal information of customers for
different purpose. As it is ethical and moral principles to abide by company while promoting
business through digital technology for fruitful outcome (Barsukov and et.al., 2018). Moreover,
company need to work on its cyber security while providing services to customers so that
nobody else can make misuse of information in any circumstances.
3. Impact of new collaborative relationship and strategic alliances through digital technology
Collaborative relationship can be defined as when two and more than that work together
as team for achievement of common goals of company. So, it is complex process that forces two
people or organization to work in group and listen, communicate with each others so that
company can retained its competitive advantages. Strategies alliance is arrangement between two
companies regarding the specific project while maintaining its independences. So, the impact of
new collaborative relationship and strategies alliances by making use of digital technologies by
Catalyst can be illustrated as follows:
Impact of collaborative relationship related to digital technology
Productivity: The one of the positive impact of making use of collaborative relationship related
to digital technologies is it lead in enhancing overall productivity as well as profitability of
company. Digital technology helps companies in effectively communicating and connecting with
diverse range of individuals in limited time frame thereby enhancing profit margin of
organisation (Richter and et.al., 2017).
Cost: It is second advantages or impact of collaborative relationship in context of digital
technology as company is able to reduce its overall cost by diving the expenses. Cost or expenses
related to digital technologies is shared by both the company in equal ratio that lead in reducing
overall burden. Moreover, collaborative relationship in digital technology yield company in
reducing its expense and delivering maximum value to customers.
Efficiency: Another impact of collaborative relationship is that it contribute in increasing
efficiency of company as firm by working together through digital technology is able to search
more accurate information related to customers (Mendling, Pentland and Recker, 2020). Thereby
find more innovative and better strategies related to attracting people in the organisation so that it
can enjoy maximum sales volume and profitability.
Security: Moreover, it can be stated that digital technologies collaborative relationship
contribute in safeguarding useful information of customers. Two steps authentications,
passwords are some of the security measures that can be used by collaborative parties to retained
and protect their sensitive information or data.
On the other hand, there are negative impact of collaborative relationship related to
digital technology such as:
Online collaborative relationship might not have sufficient resources that could be used
by company in order to communicate with each others.
Moreover, digital technologies in collaborative relationship may lead to leak of one
company information to another that can adversely impact on organisation.
Another impact of collaborative practices is that it lead in Ambiguous of role that needs
to be performed by specific individuals. So, it lead in lot of confusion and conflict
regarding the way task need to be performed so that qualitative services can be render to
customers (Constantinides, Henfridsson and Parker, 2018).
Impact of strategic alliances through digital technology
Productivity: The one of the positive impact of making use of collaborative relationship related
to digital technologies is it lead in enhancing overall productivity as well as profitability of
company. Digital technology helps companies in effectively communicating and connecting with
diverse range of individuals in limited time frame thereby enhancing profit margin of
organisation (Richter and et.al., 2017).
Cost: It is second advantages or impact of collaborative relationship in context of digital
technology as company is able to reduce its overall cost by diving the expenses. Cost or expenses
related to digital technologies is shared by both the company in equal ratio that lead in reducing
overall burden. Moreover, collaborative relationship in digital technology yield company in
reducing its expense and delivering maximum value to customers.
Efficiency: Another impact of collaborative relationship is that it contribute in increasing
efficiency of company as firm by working together through digital technology is able to search
more accurate information related to customers (Mendling, Pentland and Recker, 2020). Thereby
find more innovative and better strategies related to attracting people in the organisation so that it
can enjoy maximum sales volume and profitability.
Security: Moreover, it can be stated that digital technologies collaborative relationship
contribute in safeguarding useful information of customers. Two steps authentications,
passwords are some of the security measures that can be used by collaborative parties to retained
and protect their sensitive information or data.
On the other hand, there are negative impact of collaborative relationship related to
digital technology such as:
Online collaborative relationship might not have sufficient resources that could be used
by company in order to communicate with each others.
Moreover, digital technologies in collaborative relationship may lead to leak of one
company information to another that can adversely impact on organisation.
Another impact of collaborative practices is that it lead in Ambiguous of role that needs
to be performed by specific individuals. So, it lead in lot of confusion and conflict
regarding the way task need to be performed so that qualitative services can be render to
customers (Constantinides, Henfridsson and Parker, 2018).
Impact of strategic alliances through digital technology
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