Digital Business Report: Amazon's Digital Business, Trends, and Models

This report provides an in-depth analysis of Amazon's digital business operations. It begins by defining digital business and its advantages, then explores key trends such as mobile devices, user experience, and artificial intelligence. The report examines Amazon's strategic use of technology, including AI, voice services, and video search. It then delves into emerging digital business models like freemium, marketplace, and on-demand models, while also addressing key issues such as cybersecurity threats. The analysis further explores Amazon's business model, including its evolution into a complex digital ecosystem. The report also covers the impact of collaborative relationships and strategic alliances, both in general terms and as implemented by Amazon. Finally, it assesses the impact of country-specific internet policies, specifically considering Russia's implementation of its own internet, on digital business practices.

DIGITAL BUSINESS OR
ECOMMERCE BUSINESS
REPORT

EXECUTIVE SUMMARY
The report was aimed to articulate digital business. With this regard, Amazon plc has
been taken into consideration. The report deeply presented different dimensions of digital
business. In the beginning, digital marketing concept with its advantages and disadvantages
which are crucial for the business to analyse. The report will identify the key trend which are
significant for the organization to develop better strategies and enhance the services which has a
significant influence on the development of the business. The key digital business model which
are emerging in the industry and has a significant influence on the success of the company. New
and attractive collaborative tools which are crucial for the business to engage these aspects and
enhance the overall marketing practices of the business in the industry. The implementation of
the own internet in the Russia is also discussed in the business to carry out the digital business
practices securely.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
1.1 definition of digital business..................................................................................................4
1.2 Advantages of digital business..............................................................................................5
1.3 key trends in digital business.................................................................................................5
1.4. Application to using digital business and key trends in amazon..........................................6
2.1. new, emerging digital business models................................................................................6
2.2. key issues in emerging business models...............................................................................7
2.3. Use of digital business model by amazon.............................................................................7
3.1. Defining new collaborative relationship and strategic alliances..........................................8
3.2. Advantages and disadvantages of collaborative relationships and strategic alliances.........8
3.3. Use of collaborative relationships and strategic alliance by amazon...................................9
4.1 the impact of internet on digital business............................................................................10
4.2 determining the Russia's implementation of their own internet on digital business............10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Digital business allows the business to manage buying and selling of goods and services
with better collaborating with business partners and forming the electronic transactions in
organization. While e-commerce is narrower scope of e business as well as digital business.
Amazon is the great example for digital business and it serves with broad range of products and
services to the customers and specially in UK itself (Senyo, Liu and Effah, 2019).
This report will aim at key trends and benefits of digital technology with their
implications for managing the virtual business in global environment for the organization. For
the same it will evaluate what is digital business and their benefits. Further, it would evaluate the
impact of new collaborative relations and strategic alliances by digital technology for
organization. At the end of report, it will analyse the impact of country specific local internet
over digital business by critically reflecting to Russia's implementation of its own internet on
digital business. It shows what will be the consequences of developing the personal network in
the specific areas and how it works and provide the benefit aspect in the country for citizens.
MAIN BODY
1. Overview of key trends and advantages
1.1 definition of digital business
The virtual business refers to the business who conducts the business operations via
internet. It may or may not have some kind of physical presence like it can be office or
warehouse, but it doesn't have the physical locations for customer to make the purchase. Digital
business concentrates on getting competitive advantages which technology helps them to
increase (Bican, and Brem, 2020). On the other hand using digital business helps in several ways
but mostly the major factors which takes place such as it can be supportive to enhance their
productivity.
1.2 Advantages of digital business
Customer satisfaction, retention and loyalty have always been crucial for business
survival and growth. The strong customer experience refers to powerful customer loyalty,
increased sales and more target audience for business (Nugroho and Hamsal, 2021). Digital
business allows customer to take advantage of the services and shop freely without any lengthy
process. Mostly people prefer making purchase through online sources as it feel comfortable to

shop and fulfil their needs. In familiar with the same people nowadays chose over online
shopping methods comparatively with purchasing from retail outlet (O’Leary, 2021).
1.3 key trends in digital business
 Mobile devices : the entire market run on mobiles where each and every customer
considering the use for the same. Mobile e-commerce is the key trends influencing in
market in which all other online retailers swear by (Sousa and Rocha, 2019). The holiday
sales are the huge reason for business to make advantage and it is the biggest opportunity
for business to capture the customer attention.
 User experience : it is also relevant with upcoming trend in digital business, as time
changing it is essential for business to personalize the user experience. It can be catered
by faster shipping methods, competitive prices, comfort in navigating on website, and
flawless checkout experience (Wirtz, 2019).
 Artificial intelligence : artificial intelligence and machine learning are concerned with
digital marketing industry, it is beneficial for business and can be easily affordable. One
of the most accessible parts of AI is chatbots in which customers can communicate with
customers instant ways, track the behaviour of consumers and further providing the
personalise answers to customer questions via machine learning (Kim and Kim, 2022).
1.4. Application to using digital business and key trends in amazon
Strategic use of technologies
In this modern era, amazon is the business who is making effective use of artificial
intelligence as such it would be easier for customer to shop online and get advantages from
useful facilities (Park and Mithas, 2020). Furthermore, the company will also expand their
operations to new drone delivery in specific locations.
Voice service
Amazon is accessible to broad range of customer information and leverages to enhance
the voice service in the easiest terms of searching (Alfonso and et.al., 2021).
Video search
In the current scenario amazon have the beta version for video in search ads which enable
the advertisers to make a product detail page campaign or custom landing page campaign.
2. New and emerging digital business models and key business issues

2.1. new, emerging digital business models
The digital business model can be described as model which leverage digital technology
for improving the several aspects of organization. It shows how the business acquire customers
to what kind of product and service is being provided (Li, F., 2020). There are various types of
emerging business models.
Freemium model
It is one of the frequently used models which is concerned by most of the businesses in
which the consumer gets the product or it can be service with free of cost (Al Amin and et.al.,
2020).
Marketplace model
This is model is relevant with two side market in which seller and buyer uses third party
platforms to commerce goods and service. Although it could be possible to use membership fees
on the platform as well as to generate the money via advertising or premium positioning services.
On demand model
The model is suitable with virtual product or service that can be online video stores in
which users can watch video for certain time period.
2.2. key issues in emerging business models
There are some issues which can lead to harm the business operations and can be major
threat for business (Ansong and Boateng, 2019). Cyber security is becoming the major issue for
individuals and companies, in the world where everything is based on internet.
Ransomware
It is consisted of hacking into user data and preventing them from accessing it until
ransom amount is paid. These attacks can be critical for business who cannot access to their data
for running the daily operations.
Phishing attacks
It is type of social engineering attack which often used for steal the user information,
which includes login credentials and credit card numbers (Joo and Hyun, 2022).
Machine learning and AI attacks
The artificial intelligence and machine learning technologies is growing immensely and it
is useful for massive development in various sectors. These technologies may be used in terms of
executing the cyberattacks and posing threat to business.

Cloud security attacks
The cloud service is mostly used in personal and professional needs, hacking cloud
platforms to user data is the tough challenges in cyber security for business (Babenko and et.al.,
2019).
2.3. Use of digital business model by amazon
The business model of amazon was based on e-commerce that has been changed and
incorporates entertainment, cloud, music, cloud computing, deliveries of meal and many more.
From the single side e-commerce platform, amazon is moved into complex digital ecosystem.
Amazon business model is no single entity but also portfolio of business models. Amazon has
changed rapidly and established it as the biggest companies in history and with AWS company
have global reach and dispersion capability offering digital and physical products (Merzlyakova,
Ershova and Bridskiy, 2021). Jeff Bezos Flywheel Model is conducted to ensure the cost
generating operating cycle. The business inventories should not be unfavourable with customer
service and always cater the best service to their customers well in time (Cui, Xiao and Zhang,
2021).
3. The impact of new collaborative relationship and strategic alliances
3.1. Defining new collaborative relationship and strategic alliances
Collaborative relationship is the term in which two or more individuals work together for
to achieve in carrying out common goals. It has become preferable in solving the working with
several peoples having the different point of view (Krasnov and et.al., 2019).
3.2. Advantages and disadvantages of collaborative relationships and strategic alliances
The new collaborative relationship works effectively through digital technologies and
made the working easier to conduct the business operations and other aspects. The advantages
of online collaborations are:
 It gives the team members tools which is required by them to work with others from any
locations. It decreases the downtime and enables people to be productive.
 It is highly cost effective as compared to traditional methods and with reach of all size of
organization (Zhang and Dai, 2021).
Disadvantages
 Personal contact is reduced that can be lead to confusion over what is expected of team
member, the member should be accountable for their own task and keep other as well.

 It could be tempting to broaden the amount of people in collaborating, without adequately
assessing to the reasons why the need for collaborating is essential (Cao, Shao and
Zhang, 2022).
Advantages of strategic alliance
 It allows business to get the competitive advantage via accessing to partner resources
which includes markets, capital, technologies and people.
 These are also used for speeding up the product introduction and overcoming the legal
and trade barriers.
Disadvantages
 The primary con of this is fact which one partner manages all business internally must be
dependent on second partner (Javid, Nazari and Ghaeli, 2019).
 The partner can become rival at some point, in case when it is profited enough from the
alliance and grew through to finish partnership with the ability to manage on its own in
market segment.
3.3. Use of collaborative relationships and strategic alliance by amazon
Amazon make use of collaborative relationship for their team to work more effectively,
teams are more collaborative and agile the business works for tools which brings the people or
projects together, that will include online collaborations and communications tools (Sa and et.al.,
2021). The relationship helps Crayon and AWS to convey innovation to faster service and
supports them the best advantage the transformational power, agility of cloud. On the other hand,
the strategic alliance is built between amazon and their suppliers, as such they are not
competitors but also symbiosis relationship (Mohamad, Hassan and Abd Elrahman, 2022).
4. Impact of country specific local internet on digital business
4.1 the impact of internet on digital business
The internet is fast, efficient and full of resources which supports anyone to carry out
their needs (Thakkar, 2019). Online presence supplies the standing to business, enhance brand
visibility as well increase the confidence of potential customer in company offerings. By using
internet, it is essential tool for organizations while used in the correct ways. Internet has changed
business practices a lot and opened up new avenues of conducting business. Communications
technology aligned with internet has altered new concept to connectivity as well as scattering of
information (Olajide and Kwak, 2018).

4.2 determining the Russia's implementation of their own internet on digital business
It can be said that the conflict issues among Russia and Ukraine impact the prevailing
data as well as internet dispersions. In similar way the war consequence of aim with establishing
their own personal networks (Lu and Siegfried, 2021). Russia is having the population around
140 million and it is developed country in which the personal network would be immense. The
war between the countries is leading separation in part of global unity as such with difficulty
measures it is often to see Russia to introduce their personal network. It is to get manage over
communication as well as data circle of nation. On the other hand, there are some advantages and
disadvantages that determines the Russia implementation of their personal network (Gunnarsson
and Nilsson, 2020).
Benefits
The major advantage of networks will be supportive for people in the prevention of
concerning the global network and getting impacted by global condemnation. While in some
circumstances individuals will be feeded with useful information which is benefit of nation so it
rises the way of conducting. It will work as with provision of upper hand to nation (Ahmad, S
and et.al., 2021). The network may prevent malicious power for getting into the networking
system of nation, whereas most of the organizations can make their data safest. The private
network sort out the risk of data management that is difficult issue for dealing and so on the
private network can sort out the risk (Azoev, Sumarokova and Azoeva, 2019). The overall
control is the major concern and advantages that is leading the Russia to evolve personal based
network.
Limitations
The limitations of such network can be concluded in the ways when it directly affects the
global communications where the world has analysed immense implications of crisis. Similarly,
it is mandatory to share best practices with each other in restricting and fight against the worst
fearful demon and it can be unfavourable due to the consequences of inadequate communication.
While being fragmented from global world impact the ability of specific country to be
competitive with other powers (Thorslund and Herrström, 2020). Although, personal network
develops the high prospects for citizens to be unconscious about global trends that is being
concerned with communication in digital networking.

CONCLUSION
From the above report it had been summarized about key trends and benefits of digital
business and the advantage of those trends in the context of Amazon. For the same it is identified
the emerging business models and key business issues such as cyber security and ethics. It shows
that how these threat can affect the business operations and chances of risk to business. It
discusses the business model of Amazon and how they work effectively for business. Further, it
has been executed the impact of new collaborative relations and strategic alliances through
digital technology for business. At the end of report, it had analysed the impact of internet on
digital business on the basis of country specific local internet. Also, it critically reflected towards
Russia’s implementation of personal network on digital business by critically evaluating to their
benefits and limitations how the personal network will be favourable to use.

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