Digital Business Strategies for Amazon: Trends, Models, and Alliances

This report provides a comprehensive analysis of Amazon's digital business strategies. It begins by exploring key trends and advantages of digital technology within Amazon, including its implications for managing virtual administration in a global environment. The report then delves into the emergence of digital business models, specifically the AIDA model, in the context of key business issues faced by Amazon. Furthermore, it examines the impact of new collaborative relationships and strategic alliances facilitated by digital technology. The report also outlines the e-commerce principles employed by Amazon. Overall, the report highlights how Amazon leverages digital technology to enhance its operations, customer relationships, and overall business success.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Key trends and advantages of digital technology in Amazon along with its implications for
managing virtual administration in global environment.............................................................1
2. Emergence of digital business models in context of key business issues generated within
Amazon ......................................................................................................................................3
3. Impact of new collaborative relationship and strategic alliances through digital technology
of Amazon...................................................................................................................................6
4. E- commerce principles that are used by Amazon..................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital business is a kind of enterprise actions which use technology in order to build
new and innovative values in business models, user experiences and intra group capabilities that
support its core operations. It include both the brands that are dealing in digital concepts only
while it also includes traditional players as well who transform their business actions with
advanced technologies through digitization (Neubauer, Tarling and Wade, 2017).
Amazon is a multinational technology company which focuses completely towards the
electronic commerce, digital flowing, artificial intelligence and cloud computing. It is one of the
largest organization dealing in online selling of goods and services within the market space.
This report will describe the concept of key trends and advantages of digital technology
and their implications along with evaluation of new and emerging digital business models in
context of key business issues. Apart from this, the study will highlight the discussion on the
impacts of new collaborative relationships and strategic alliances through digital technology for
Amazon along with e-commerce principles utilised by the firm.
MAIN BODY
1. Key trends and advantages of digital technology in Amazon along with its implications for
managing virtual administration in global environment
Amazon has gone through various digital transformations from its very beginning when
they start their business activities in order to serve their services to the customers within the
market place. There are various trends and benefits that has been taken by the Amazon while
doing business through digital technology in order to sustain their business within the
competitive market place. Digital technology is an application which describes ones digital
capabilities towards the procedure of their products and services in order to increase their
efficiency, customer value, risk management and give directions through income generation
possibilities (Loonam and et.al., 2018) Amazon adopts digital technology in their internal as
well as external operations which includes sales, assistance and merchandising attempts.
Digitization of technology not only enhances the people's lives but also make their work
effectively easier in almost all sectors. It helps the Amazon to keep up with emerging consumer
demands and thus enables themselves to survive into competitive world place. Digital
capabilities of the Amazon enables the firm towards new business strategies to gain various
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opportunities into business concern. The customers are at the centre of any strategy and thus in
this digital strategy as well. Amazon offer their goods and services according to the needs and
requirements of the consumers and according to their consumption level they keep focus on their
production level in order to deliver same which has been expected by their customers. There are
various benefits that has been received by the Amazon such as:
 Social connectivity: Digital technology makes it convenient for the Amazon in order to
get connected with their customers and keep proper feedbacks in time to time intervals.
It will help them to enhance and modify their services as well as products in order to
sustain in competitive world. With the help of digitization, Amazon is able to
communicate through audio and video and visual images in order to connect with their
clients in personal context. With this users are keep on updated on regular basis.
 Versatile working: Digital technology has enhanced the connectivity with various
people and thus generates new work opportunities. Without presence of the workers at
one place, Amazon is able to handle their customers from various locations and offer
their services at different places (Elia, Margherita and Passiante, 2020).
 Automation of work: it generates automatic working of the people within the work
premises through which the company is able to work efficiently at reduced cost and thus
also enables the firm to consume time as well.
 Information storage: It enables the Amazon to store huge amount of data at one single
place in most appropriate and safe manner. Large amount of media including videos,
pictures, music, etc. can be collected at one place and can be accessible through online
mode of communication with the customers can able to reach huge amount of people in
the society.
 Low cost: Apart from internet and device cost, the digitizations makes the marketing of
goods and services more appropriate and cheaper in nature. It generates various options
to connect with the clients with just minimal costs of internet connection. It also helps
the Amazon to improve their operational efficiency and productivity (Ross, Beath and
Sebastian, 2017).
 New business opportunities: With the help of digitization of business activities,
Amazon is able to expand their administration activities towards more diversified
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directions and enables the firm to generate more revenue from introduction of more and
more innovative and advanced products to their customers.
However, there are certain implications that affects the Amazon which includes that even in
current world as well, some people prefer personal touch and relationship with the sellers while
purchasing. It does affects the security point and generates huge amount of risks for the Amazon
because of which their employees keep to focus on such kind of issues so that they can able to
give barrier free services to their clients (Kohli and Melville, 2019). The major implication is
that it does contain large amount of rules and regulations that needs to be focused by the
Amazon in each context while giving online services to their consumers.
2. Emergence of digital business models in context of key business issues generated within
Amazon
The digital business model such as AIDA model has been described in context of
Amazon in appropriate manner with all the possible issues that has been generated within an
organization. AIDA model is a pattern that promotion, mercantilism and income functions has
been utilised in order to target all touch points during the customer's journey that is from getting
to know detailed information about the product that the consumer is going to purchase to finally
buying that specific good (Holotiuk, Pisani and Moormann, 2017). The model is also known as
the purchase funnel in which the number of consumers targeted at the stage of awareness drip
down and thus ultimately very few customers are left who actually turn into purchasers. This
specific model consists of four fundamental stages such as Awareness, Interest, Desire and
Action.
The primary and foremost stage is the awareness stage which describes the first
impression of the firm i.e. Amazon in front of their consumers. At this stage consumers reaches
out the brand with the help of many processes. This might include advertising, mouth publicity
or kiosk displaying of products and services into the market space. Nowadays the most popular
way of getting popularity through sponsored content. Amazon is a well established brand and
reached already a lot of customers in terms of giving diversified services with complete
satisfaction to them. This is the way due to which the brand assumes sometimes that their
existence within the market will automatically known to the people and thus major working
upon advertising may not be done by the firm. Due to which Amazon not majorly emphasise on
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traditional ways of advertising rather than utilising some graphics and more innovative ways of
doing publicity of their goods and services within the market space. This is the reason that
Amazon utilises captivating ads, personalised messaging process, intelligent targeting and
similar kind of steps in order to attract more potential customers towards themselves. At this
stage the firm have to be fully ensure in order to store customers details in most safe manner.
During this stage, customers also keep their attention towards the activities that have been
performed by the organization that whether the activities that are adopted by them are ethical in
methods or not (Berawi and et.al., 2020). As the customers are getting more attracted towards
the firms who did their operation in proper and ethical manner with the involvement of morale
values.
Next stage is the interest phase which is the most critical stage among all other stages as
it involves the generation of consumers curiosity towards the brand. If the customers feel the
product useless for them or does not find it that must captivating enough, so that he will never
reach at the purchase stage. Thus, it is highly important to deliver the product message in a
customised and precise manner that can effectively able to attract the customers in most
appropriate way. Amazon utilises most eye catching option of buffer button which not only
display case the service characteristic but also the quality determination that majority of
businesses also utilises for their business purposes. In this stage Amazon utilises some of the
basic data of customers who click on their link, thus in order to ensure the safety and data
security purpose, company needs to make sure in order to save the data from any kind of breach
action.
Third stage is desire in which brands presentation is highly important and appreciated by
the consumers but not necessarily converted into sales. Interest and desire can be achieved at the
same time so that with immediate effects just after the generation of interest, desire to purchase
that product has been generated within customers. Generally it has been created with the
comparison of products from other brand items or offerings. Thus, to ensure these activities,
brand needs to be focused on their ethical practices which without must efforts attracts the
attention of customers towards their brand and ensure customer perceived value in fruitful
manner (Ragnedda, 2018).
Last stage is the action phase in which final actions has been taken by the customers.
During this stage Amazon encourages purchases through EMI options which enables the
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consumers to purchase durables and gadgets even when they are running through tight budget or
unable to pay whole amount at one shot (Nikulin and Bagautdinova, 2019). This is the most
important stage as this stage includes numerous personal details of customers and the firm has to
ensure the safety and security of all the details of the consumers in most appropriate and strict
manner to maintain the trust factor of buyers.
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3. Impact of new collaborative relationship and strategic alliances through digital technology of
Amazon
Collaboration relationship occurs when two or more companies have decided to work
together as a team for achievement of end goals. Both have decided to share profit, risk as well
as resources so that they can achieve particular objectives. Amazon through forming new
collaborative relationship and strategic alliances has able to promote its growth and development
in global environment to maximum level (Lyytikäinen, 2020). Likewise, Wipro has extended its
strategic relationship with Amazon web services that has helped company in competing with
other organizations. With development in technology, company has planned to make effective
use of digital technologies to frame strong relationship with alliance or collaborative relationship
with other firms. So, the different impact that new collaborative relationship and strategic
alliance that are made through digital technology can be illustrated in detailed as follows:
 Strategic alliance contribute in sharing of risk, reward of company in predetermined
manner so that burden is not on particular organization. Thus, the Amazon does not
have to bear much risk while performing its different function for achievement of end
goals.
 Another impact that new collaborative relationship have on Amazon is development or
finding of new, creative and innovative ideas that could be used by firm to meet
customer’s expectancy. Both firm together identified the best suitable options that they
can make used to fulfil wants of customer’s beyond their expectancy. Thereby leading
more benefits to organization (Kamenarac, 2020).
 Moreover, it can be stated that it has also leads in sharing of learning and skill between
the companies as they have more or sufficient resources to attained the desired goals.
Thus, Amazon through strategic alliance is able to have highly talented, skilled and
qualified employees, resources to attain the goals.
 Digital technology has contributed in effective building of strong relationship between
the strategic alliance through promote open and efficient flow of information from one
individual to another. Thus, all operations or functions of company can be easily
completed without much wastage of time and money.
 Amazon through making strategic alliance by use of digital technology is able to easily
generate the reputation of company and attract new and new individuals to become part
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of organization. So that it can enjoy high sales volume and market share in e-commerce
platform and gain competitive advantages (Zhao and Gong, 2018).
 Furthermore, it can be stated that strategic alliance lead in effectively or easily
overcoming the barriers or problem that are face by the company while performing its
different function. So, both companies through devoting their time and efforts can find
out appropriate solution that could be used to resolve the problem for benefits of firm.
 Strategic alliance through digital technology has helped Amazon in providing
opportunities to expand its businesses operations into new market with an motivate to
enjoy high profitability and market share. It can easily cover new market share as the
other firm with whom alliance form has already good reputation in minds and hearts of
customer’s (Dubey, Sharma and Sangle, 2020).
 At last, it can also be collaborative relationship also yield in efficient process and
increased success of company as Amazon has more well-defined the task, roles and
responsibilities that needs to be completed by each and every individual. So that there
are minimum chances of confusion and conflict in future circumstances thereby
delivering services to customer’s in limited time frame.
 While there is one of the negative impact of collaborative relationship and strategic
alliances through digital technology that it has to share profit between companies as well
as more challenges has to be faced while formulating agreement. Therefore, Amazon
needs to find alternative method that could be used to resolve the issues so that
maximum benefits can be enjoyed by the firm.
Thereby, it can be illustrated that collaborative relationship and strategic alliances
through digital technology has help company in sustaining competitive advantages in global
environment. Moreover, it has been understood that through strong collaborative relationship
Amazon can get financial and other human resources to complete different task for achievement
of its objectives.
4. E- commerce principles that are used by Amazon
Amazon is one of the growing company operating in e- commerce platform to delivered
range of services and products to customer’s for satisfaction of their wants in effective manner.
The company continue to be the top retailer in external environment through making use of e-
commerce technology for growth and development of firm. Therefore, the key e-commerce
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principles that has been considered by Amazon while completing their respective task can be
illustrated in detailed as follows:
1. Customer’s centric thinking: The first and foremost principles that has been abided by
the Amazon while performing several activities related to e- commerce platform is
customer’s centric thinking. Likewise, it lays emphasis more on satisfying needs and
wants of people in the best possible manner so that they are motivated to be part of it
rather than other firm operating in external environment. It has also focus on delivering
more personalized services to people that has helped in building and retaining strong
relationship with them for longer time frame (Vulkan, 2020). Thus, it through making
use of omni-channel, delighting every touch point can easily add new and new
customer’s within organization.
2. Empowering shopper: In recent circumstances, the customers are more independent as
compared to previous years thus they have more power to decided whether to purchase
for specific firm or not. Thereby the Amazon has focused on empowering the shoppers
through considering their points of view, experience and feedback. Thus, taking
appropriate set of action that could be undertaken to make customer’s happy and
satisfied beyond their expectancy level. For example: clear return policies and post
purchase email are some of the method that are used by Amazon while delivering
services through e-commerce platform to range of individuals that are living in society.
3. Speed: Another principles that has been abided by the Amazon while performing its
different function is speedily delivering services to millions of customer’s. Such as it has
lay emphasis on providing same day shipping, speedy replies to customers so that their
problem can be resolved in limited time frame. Quick loading site and speedy services
principle adapted by the Amazon has helped in building and retaining strong brand
image of company in mind and hearts of customer’s.
4. Optimised discovery: Moreover, it can be stated that the Amazon has followed the
principles of optimize discovery so that customer’s can easily find products and services
that they want to satisfy their respective needs. For examples: Customer’s can easily
review products and services in which the company is dealing through its official website
thus can take right decision to purchase the same (Press.LAW, 2020). So, it has helped in
maintaining strong relationship with customer’s and growth and expansion of firm.
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5. Emphasis on security: The Amazon has tried to lay importance on ensuring safety and
protection to crucial information of individual so that no harm can be cause to them in
any circumstance. Maintaining security of personal information of customer’s has helped
Amazon in enhancing its market share through e- commerce platform. Therefore, this
principles has also contributed in adding more and more customers in the firm for its
benefits and growth in future circumstances.
6. Consistent branding: At last it can be stated that Amazon while making use of e-
commerce platform has focus on consistent branding of company so that strong brand
image is being created in minds of customer’s. It continuously posts images, videos and
other detail pertaining to its products and services and company on official websites,
social media platform and others. In order to aware people and expand its business
operations in international market for longer time frame (XU and CHENG, 2021).
Therefore, it can be summarized that Amazon through following all these e-commerce
principles has lead in making customer’s happy and satisfied to maximum extend. Thus,
company is able to enjoyed high sales volume, profitability and market share in competitive
market for many years.
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CONCLUSION
From the above report there are various things that can be summarized such as digital
business has become important in recent circumstance as it helps in connecting with range of
customer’s in limited time frame. Moreover, it has been learned that there are various trends in
digital technologies that has influenced businesses to adapt them in order to grow and sustain
business operations in global environment. At the same time it has helped in understanding that
new digital business model has helped in resolving issue pertaining to ethics and cyber security.
In addition to this new collaborative relationship and strategic alliances through digital
technology have positive impact on growth and development of firm. Thereby, at last it can be
concluded that Amazon through considering different e-commerce principles is able to create
huge brand image and enjoy high profitability.
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REFERENCES
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digital technologies and collective intelligence are reshaping the entrepreneurial
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Holotiuk, F., Pisani, F. and Moormann, J., 2017. The impact of blockchain technology on
business models in the payments industry.
Kohli, R. and Melville, N.P., 2019. Digital innovation: A review and synthesis. Information
Systems Journal, 29(1). pp.200-223.
Loonam, J., and et.al., 2018. Towards digital transformation: Lessons learned from traditional
organizations. Strategic Change, 27(2). pp.101-109.
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Center for Digital Business Transformation. CISCO, IMD.
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in the Supply Chain Management and Digital Economy. International Journal of Supply
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Model Development.
Ragnedda, M., 2018. Conceptualizing digital capital. Telematics and Informatics, 35(8).
pp.2366-2375.
Ross, J.W., Beath, C.M. and Sebastian, I.M., 2017. How to develop a great digital strategy. MIT
Sloan Management Review, 58(2). p.7.
Vulkan, N., 2020. E-commerce and the Principles of Economic Engineering. In The Economics
of E-Commerce (pp. 93-114). Princeton University.
Zhao, J. and Gong, Y., 2018, April. Data Driven Topsis Method and Its Application in E-
commerce APP. In Proceedings of the 2018 International Conference on Big Data and
Computing(pp. 49-52).
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XU, J. and CHENG, C., 2021. Uncertainty avoidance, individualism and the readiness of
Business-to-Consumer E-commerce. The Journal of Asian Finance, Economics, and
Business, 8(1). pp.791-801.
Lyytikäinen, P., 2020. How to create new business opportunities in data sharing ecosystems
with collaborative relationship between a large company and a SME.
Kamenarac, O., 2020. Collaborative relationship.
Dubey, N. K., Sharma, P. and Sangle, P., 2020. Implementation and adoption of CRM and co-creation
leveraging collaborative technologies. Journal of Indian Business Research.
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