Analyzing Amazon's Digital Business: Trends, Ethics, and Alliances

This report provides a comprehensive overview of Amazon's digital business, examining key trends, benefits, and implications for managing virtual businesses in a global environment. It evaluates business models in the context of cybersecurity and ethical issues faced by Amazon, including concerns related to employee wages, environmental impact, animal ethics, tax avoidance, and data privacy. Furthermore, the report elaborates on the impact of collaborations and strategic alliances on Amazon's digital business, highlighting the advantages of wider market access, adaptability, critical thinking, joint expertise, cultural diversity, commitment, and open communication. Finally, it touches upon the principles of e-commerce that Amazon adopts to maintain its competitive edge. This analysis offers valuable insights into the multifaceted aspects of Amazon's digital transformation and its strategic approaches to navigating the challenges and opportunities in the digital landscape.

DIGITAL
BUSINESS

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
1. Explain the overview in aspect of the key trends and benefits of digital technology and the
implications for managing the virtual businesses in the global environment in aspect of Amazon....3
2. Evaluate upon the business models in context of the business issues in terms of cyber security
and ethics at Amazon.........................................................................................................................4
3. Elaborate the impact of collaborations and the strategic alliances through the digital business
upon Amazon....................................................................................................................................5
4. Explain the principles of e commerce that need to be adopted by Amazon...................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Digital business is referred to the use of technology in order to benefit the various
operations of the organization whether internal or external. Digital business is an outcome of
the evolution of information technology. Information technology has led to various dynamics
in the operational activities of businesses and evolved them in the last few years. The
evolution has become quite accessible to the various individuals as well as the businesses.
The digital business has brought variations in the operational activities of the businesses
which used to happen on a daily basis. The transformation of digital business has proved
beneficial for the assets as well as the technological up gradation (Ballardini Ituarte and Pei,
2018).
Amazon is a multinational organization that focuses upon providing services related
to e commerce, digital streaming, artificial intelligence and cloud computing. The
organization is referred as among the most influential forces in the world in terms of cultural
and economic aspect. The organization was established in the year 1994 by Jeff Bezos. The
study revolves around the digital business of amazon (Bican and Brem, 2020).
TASK
1. Explain the overview in aspect of the key trends and benefits of digital technology and the
implications for managing the virtual businesses in the global environment in aspect of
Amazon.
The Digital business tends to have a huge positive impact upon the business models of
the organization in terms of virtual business. The various trends and benefits in aspect of
Amazon are discussed below-
 Client knowledge- Customer insight is referred to the abilities of utilizing different
internet advertising devices to target different clients. The term is additionally
utilized for the offices like site investigation instruments that give an understanding
identified with the necessities of the clients that can be addressed by the venders to
acquire an upper hand. An input from the client's side can be useful to improve the
experience by taking different measures to manage the clients. These web based
advertising devices are a resource for the different internet business stages and can be
embraced to catch the market (Boojihawon and Ngoasong, 2018).
 Simple to get to business sectors- The online market gateways have worked with in
giving a superior and simple method of arriving at the clients. The online mode
assists the business visionary with arriving at the market through different online
stages and offer their items to any piece of the globe whenever. This elevates the
different merchants to have a scope towards the market.
 Reduction in overheads- The online method of business diminishes the requirement
for the different costs that have been expected to investigate the market through
disconnected mode. The online method of business dispenses with the requirements

for an actual retail outlet that saves a great deal of cost in purchasing and keeping up
the power source place. This additionally kills the requirements to employ staff to
manage the clients. The online method of business can utilize those assets and put
into some better promoting procedures to draw in clients towards their business.
 Enlarges the market- The online method of business gives a more extensive stage or
market to sell and purchase the items and administrations. Dissimilar to the
customary disconnected mode, the business isn't restricted to a geological degree.
The online mode works with to investigate the business with the clients who have a
place with different geological area and an assorted culture. This permits the business
to sell the items past the nearby clients and furthermore there is a likelihood that the
items are more sought after at different areas of the world when contrasted with the
neighborhood environmental factors. This would help in reacting to a more extensive
market by offering the web administrations in different well known dialects of the
world (Haffke, Kalgovas and Benlian, 2017).
 Potential for fast development- The computerized method of organizations permit
the association to have an encounter a quick development in their business when
contrasted with the conventional imperatives. The online method of business could
dominate with the assistance of different computerized showcasing devices that can
be utilized to draw in clients and have wide client base to expand the deals.
2. Evaluate upon the business models in context of the business issues in terms of cyber
security and ethics at Amazon.
There are various challenges faced by the organizations when they switch upon the
mode of digital business. There are various ethical as well as cyber security issues that are
faced by Amazon. The various issues are discussed below-
Ethical issues-
 People- The organization has faced various issues in terms of ethics where the
employees or the people working at the garment factory were not paid enough of the
salary to get a living. The organization received the lowest grades in a survey where
the research was conducted on the basis of the wages they allow to the workers.
Amazon was blamed to have lack of remuneration policies in the organization. The
organization was checked for not providing the appropriate wages that allowed the
workers to spend upon their minimal needs.
 Environment- Amazon has faced various issues in terms of environment where the
organization was found to be lacking information about their operational activities
and their impacts upon the environment. The organization did not provide with ample
information regarding the clothing or the electronic products on the environment. The
organization had hidden the information regarding the hazardous chemicals that were
to be found in the products of Amazon. The amazon products which fall under the
product lines of beauty products, baby products and personal care products lack the
information regarding the chemical substances used in the products (Holotiuk and
Beimborn, 2017).

 Animals- The organization has been supplying the products that are made from the
body parts of animals. The organization has not levied restrictions on any such
product. Hence it can be said that the organization lacks on the part of animal ethics in
the business. The production activity of the products that are processed by harming
the animal lives is a big drawback in terms of animal rights category.
 Politics- The organization has been found guilty for tax avoidance. The organization
has experienced a ban as a retailer in the market. The huge corporates when not
paying taxes that they are eligible off is a big move towards the unethical business
(Kahre, Hoffmann and Ahlemann, 2017).
Cyber Security Issues-
 Privacy- Privacy can be referred to a term where the organization must keep the
information of their clients secret, confidential and safe while not disclosing it to the
unauthorized person. Privacy is major concern of the clients when they are transacting
or using the web or digital business facilities at Amazon. There have been reported
various breach of security.
 Integrity- The integrity term in aspect of ethics is referred to avoid the misuse or
tempering or altering of the confidential information for the self-benefit of the
organization. The trust of the clients must be maintained by keeping the information
safe. Data integrity is something that needs to be followed by all the businesses that
assures that the data being shared is consistent as well as correct and it is neither being
tempered nor being altered for the benefits of the own.
 Authentication- The authentication term refers to the process where the sender or the
recipient of the information during the transaction must prove their identity in order to
avoid fraudulent activities and have a safe transactional process. The authentication
facilitates to provide a safety to the client as well as the organization and helps in
safeguarding the information of both the parties. Authentication can be referred to
serving of reliability regarding the information that the information being shared is
correct in all terms.
 Non repudiation- Non repudiation is referred to a process where it is proved that the
information has been received by the sender to the receiver. The process allows a safe
and reliable method of exchanging information among the various parties. This
process helps in avoiding a situation where the sender can deny the sending of a
message or any information (Leischnig and et.al., 2017).
3. Elaborate the impact of collaborations and the strategic alliances through the digital
business upon Amazon.
The collaborative techniques and strategic alliances are among the various modes of
business expansion. The collaborations and strategic alliances have long lasting impact upon
the business models of the organizations. The impact of collaboration and strategic alliances
on Amazon are explained below-
Impact of collaborative techniques on Amazon-

 Access to wider market- The collaboration mode of business expansion provides a
wide market to the organizations that form collaboration. The customer base of both
the organizations or more in case there are more organizations involved in the
collaboration. The total customer of both the organizations group together to form the
customer base of the collaboration while providing a wider market for both the
organizations (Leonhardt and et.al., 2017).
 Adaptability- Adaptability can be referred to being adaptable to the changes that are
being brought into the organization or the industry. The collaborations allow the
employees to be flexible with the unforeseen circumstances in order to accomplish the
goals of the organization.
 Critical thinking- The collaboration deals with providing of the ability of problem
solving to the organization. Every organization deals with various problems on a
regular basis but due to collaboration, the organizations have an advantage of having
more reliable and accurate solutions to the organizational issues that can be solves
more effectively and efficiently.
 Joint expertise- The collaboration allows the organizations to have joint efforts in
form of having experts or professionals. The collaboration of professional skills can
prove very effective and efficient for the organizations in the course of achieving
goals through the blend of actions of the collaboration. The combination of the efforts
of the organization due to collaboration results in better and strong relationships
among the employees and the organization.
 Cultural diversity- The collaboration among the organizations helps in developing
the cultural diversities in the business organization. The collaboration allows the
individual and employees of the organizations to blend and have better and healthy
relations with each other. The diverse culture has a benefit of attracting various
regional customers at the time of expansion of the organization. The cultural diversity
also helps in developing a knowledge and understanding in context of different
cultures at the organization. The understanding helps in assessing the needs and
requirements of employees in the organization (Remane and et.al., 2017).
 Commitment- The collaboration increases the sense of commitment in the
organization. The commitment helps in providing an inspirational work environment
at workplace. This leads to a better and healthy relationship among the employees
along with better cooperation. The commitment may take place through a contractual
agreement that will allow the organizations to work together to achieve the goals.
 Open communication- Collaboration helps in facilitating the better communication,
revert and correspondence in the organization. Collaboration facilitates better flow of
goals and feedbacks through messages among the organizations that form the
collaboration. The good communication leads to better imparting of goals among the
individuals of the collaboration and the between the organizations as a whole. The
open and better communication facilitates the organizations in the collaboration to
avoid conflicts.
Impact of Strategic alliance on Amazon-

 Easy entry and exit- The collaboration allows the organization an easy entry in a
new market with the help strategic alliance with the organization that already exists in
the market. The strategic alliance allows the organization to easily enter as well as
exit the market (Scuotto and et.al., 2017).
 Risk minimizations- The risk minimization is facilitated at the various organizations
in strategic alliance as the risk is borne by all the organizations that forms the alliance
rather than a single organization bearing the loss (Senyo, Liu and Effah, 2019).
 Competition- The competition in the market decreases when an organization allies
with a strong organization in the existing marketing. It provides a benefit in front of
the other competitors.
 A better customer base- The strategic alliance mode of business expansion provides
a wide market and better customer base to the organizations that form strategic
alliance. The customer base of both the organizations or more in case there are more
organizations involved in the strategic alliance. The total customer of both the
organizations group together to form the customer base of the strategic alliance while
providing a wider market for both the organizations.
 Improves productivity- The strategic alliance allows the organization to perform in a
better way and enhance their profits with better productivity. The alliances
compensate the negative traits of each other resulting in better performance as a
whole.
4. Explain the principles of e commerce that need to be adopted by Amazon.
There are various principles that are specified as per the e commerce mode of
business. The principles help in enhancing the online businesses of the organizations. The e
commerce principles that amazon follows or must be followed by Amazon are discussed
below-
 Ease of use- The online sites that work with the clients to purchase and sell the items
should be not difficult to explore. The site should be not difficult to flip through the
items and quest for the appropriate items in the association. The sites should permit
the clients with the reasonable data in regards to the items which incorporate an
appropriate expected set of responsibilities as in to work with the clients to stay away
from disarray during purchasing (Sousa and Rocha, 2019).
 Innovative designs- The associations should give the site alluring plans to remain in
contest with their rivals. The online mode is brimming with different purchasing
options consequently the associations should utilize some innovativeness for their
sites. The viable plans will permit the clients to have an interest in the site and peruse
monotonously. The plan should be appealing just as expert.
 Security- The clients who purchase from the online site or portals search for the
wellbeing and security include that can be given from the association's side. The
secret data like the client's very own subtleties and the monetary subtleties should be
remained careful and secure and construct a trust that they will not be imparted to the
third individual. The installment door should be protected to guarantee protected and

smooth installment or, more than likely this could prevent the deals of the association
(Vendrell‐Herrero and et.al., 2018).
 Responsive technology- There are different dealer related with the internet selling
stage that will in general utilize undeniable level HTML coding alongside the
tremendous records and huge size pictures. They will in general utilize it to give an
upgraded look to the sites and improve the quality however this additionally prompts
diminishing the speed of stacking a page of the site. This can be time taking and the
site could be ignored if the clients are restless (Weill and Woerner, 2018).
 Recognize the intended interest group- The associations should well characterize
their crowd that is their possible clients and afterward in like manner they should plan
the site and serve them likewise. Distinguishing the intended interest group will
permit the association to comprehend the necessities according to the objective
gathering. This way the clients can be given the items that they are searching for and
this would lead in fostering the trust of the clients towards the sites.
 Search bar- The sites should be empowered with a quest alternative for the clients.
The search bar will prompt saving of the client's time and straightforwardly
continuing ahead to the items that they are searching for. As this would stay away
from the furious interaction of going through the different things that may appear to
be exhausting and time waste to the clients. So it is significant for the sites to present
an inquiry bar choice for the clients.
 Product portrayal- The associations should give an item depiction which is effective
and valid about the items recorded on the sites. The item depiction should be to such
an extent that it ought to pass on even the moderate data that is material for the
clients. The compelling item depiction could prompt inspiration of the clients to
purchase a particular item. As the items on online stage need actual touch, item
portrayal is the best way to pass on about the item to the clients. This will foster a
trust of clients upon the site and the association.
 Moderate format- The site should have a straightforward spread out which implies
the site should zero in on the negligible plans and keep away from the plans and
highlights that are of no utilization. The straightforwardness should be the key. The
association should pick a proper and ideal tone and plan for the format to persuade the
clients (Wirtz, 2019).
CONCLUSION
The study concludes that Digital business is quite significant in the present scenario.
The digital business helps in enhancing the business models of various organizations. Digital
business is referred to the use of technology in order to benefit the various operations of the
organization whether internal or external. Digital business is an outcome of the evolution of
information technology. The study revolves around the Digital business strategies of
Amazon. The study focuses upon the principles of digital business that need to be followed
by Amazon to attract more customers and increase the customer base. The study also focuses

upon the benefits that the digital technology has on the business of Amazon. The study
highlights the impact of collaborations and strategic alliance upon Amazon. The study
discusses in detail about the issues that are faced by the Amazon in context of cyber security
and ethics.

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