Individual Case Study Analysis: Birchbox - Business Development

This case study analyzes Birchbox, a UK-based online business, examining its strategies within the global environment. The analysis covers key trends, advantages, and disadvantages of online businesses, emphasizing the importance of digital technology. It includes a SWOT analysis and Porter's five forces model to assess the external and internal environments. The study also explores emerging digital business models, challenges related to information security, and the significance of collaborative relationships and strategic alliances through digital technology. Furthermore, it compares and contrasts digital business and e-commerce, discussing the application of e-commerce principles to digital businesses. The study provides a comprehensive overview of Birchbox's business operations and strategic approaches, highlighting the importance of adapting to the changing market conditions and leveraging technology for competitive advantage.

Individual Case Study
Analysis-----

Table of Contents
INTRODUCTION...........................................................................................................................3
Evaluate the key trends, advantages and disadvantage of business on the basis of GLObal
environment............................................................................................................................4
Comparison between the different situation and SWOT analysis of an organisation............5
Examine emerging digital business models and challenges associated with information
security threats and ethics in general......................................................................................8
Discuss importance of new collaborative relationships & strategic alliancesthrough digital
technology for implementing personalisation........................................................................9
Compare and contrast digital business and e-commerce. What are the E-Commerce principles
and discuss how they could be applied to digital businesses...............................................10
CONCLUSION.............................................................................................................................11
REFERNCES.................................................................................................................................12

INTRODUCTION
In present context, business utilizing effective tool and techniques and most of organisation
adapting virtual operating business functions with the help of internet. It considered as using
social media platform in order to promoting products and services such as youtube, what’s app,
and instagram. It involves various kind of methods which effectively implementing by
organisation as well as most of organisation frequently using digital marketing which
electronically expanding business operations and attracting to more customers. It involves
analysed market condition and situation which result as targeting large customer base. The report
about Brichbox which are situated in United Kingdom and they are dealing with customers
through online mode (Sturgeon, 2019). It providing wide range of products and services to
customers as well as offering various discounts for customer which results as increasing
customer base. The paper consist is advantages and disadvantages of virtual business,
importance of digital technology as well as analysed the internal and external environment with
the help of Porter’s five forces and SWOT framework in order to effectively developing new
strategies to achieving organisation goal and objective of company.
Evaluate the key trends, advantages and disadvantage of business on the basis of GLObal
environment.
Global environment is process which refers to include various factors which
uncontrollable so it directly impact the business profitability and productivity of company. There
are ample numbers changes which help to attain the organisation goal and objective of company.
Manager of company developing new strategies in order to execute the business functions
effectively and smooth running of business operations. Online business various benefits in order
to effectively using various tools and techniques in order to promote the products and services
(Merenheimo, 2017). In relevance of Birchbox, it is one of the leading cosmetic organisations
which headquarters is situated in US. Organisation dealing in wide range of products and
services in order to easily expanding their business operation in another country. There are
ample numbers of advantages and disadvantages when organisation adapting effective
techniques so which are discussed below.

Key trends
Increasing for reason of virtual work-: These are more important techniques which using by an
organisation and it is most important trend which frequently using by an organisation after 2019.
It includes these trends followed by employees at workplace which result as improve the
performance of company (Li, 2020).
Contract virtually-: These are the second emerging trend in order to organisation using
effectively because it helps to establishing business virtually. It considered as employers hiring
employee's through freelancers or contract basis which specific period of time.
Advantages of managing virtual business
Low costs-: These are the greater advantages for virtual or online business in order to
carrying out business activity is low. When those business run their operating activities through
internet so not incurred the other cost such as furniture, legislation, electricity and many others.
Satisfied workforce-: When employee's work virtually so it more satisfying and retaining
for longer period of time. It effectively perform their task in order to mangers motivating and
encouraging towards the work.
Disadvantages of virtual business
Lack of communication-: Organisation work on the basis of virtually in order to they
difficult flow of communication process because team are not available physically so on that
basis creating conflicts between the employee and employers. It essential to motivating
employee's so must be communicate appropriately which helps to increasing team spirit between
the employee's (Bughin, J., 2017).
Risk on image-: These is one of the drawback for virtual business in order to higher risk
which customers not easily trust the organisation and not loyal towards the organisation because
they are not physically present at marketplace.
Importance of technology and it impacts on businesses
Organisation utilizing the advanced technology in order to gaining competitive
advantages which help to survive in the marketplace for longer period of time. It helps to beat
the competition and achieving organisation goal and objectives of company.
Improve communication-: When using proper technology so helps to effectively and efficiently
adapting technology in order to reducing conflict between the employee's and establishing strong

relationship. It includes using various social media such as what's app, Facebook, twitter and you
tube.
Impact-
Helps to gaining competitive advantages-: It plays vital role in order to effectively using
this trend so exploit new opportunities at marketplace and beat competitor easily. In relevance
of organisation, it develops new strategies in order to effectively adapting internet.
Enhancing profitability-: All these tools and techniques helps to improving effectiveness
of organisation which result as adapting advanced technology which leads to increasing
profitability and productivity of company (Kim, 2018).
Therefore, it includes all the trends and tools which help to achieving the sales revenue and
profitability.
Comparison between the different situation and SWOT analysis of an organisation.
In present context, It utilizing effective techniques in order to analysed the demands and
supply of with the help of analytically conducting data. In today’s environment changing very
first so essential to maintain positive relationship for the customers and retaining for longer
period of time. Brichbox manger focusing formulated strategies in order to developing and
marinating strong relationship with customers for longer period of time. On that basis
organisation essential to analysed the external and internal environment which helps to grape the
market opportunities effectively and accordingly planning for minimizing threat. There are
ample numbers of tools and techniques which organisation utilizing effectively which result as
analysed the market trend, customer taste and preferences (SAPUNENKO, 2016).
Porter’s five forces model
These model which effectively utilizing by organisation to examine the external
environment, threat and competitors on that basis formulated future strategies.
Bargaining power of supplier-: This element helps to find out the supplier power at market place.
In relevance of organisation, bargaining power is high due to ample numbers of suppliers so
easily negotiate the price of products and services.
Bargaining power of buyer-: These plays vital role in order to examine buyer’s power
which results as ample numbers of buyers so easily switch to another brand. In context of
Brichbox, it bargaining power of buyers are moderate because they attracting large numbers of
customers and ample numbers of competitors are available at market place.

Threat of new entrants-: In these organisations they are dealing in cosmetic segment
which refers to threat of new entrant is low because they are attracting and targeting new
customers at marketplace. In reference of company, they are easily entry of new organisation.
Industry rivalry-: They are ample numbers of competitors are available at marketplace so
rivalry among the existing firm is high. It includes Brichbox effectively using various methods to
analyse the competitors strategies and accordingly implementing effectively (Al-Ali, 2020).
Threat of substitute-: These are another factor of this model which refers to in cosmetics
retail industry various kinds of substitute products are easily available in the market. In context
of organisation, it refers to they are ample numbers of competitors are present at market so easily
replacement of products. On that basis formulated new strategies by organisation in order to
attracting large numbers of audience as well as investing huge amount in cosmetic products.
Hence, it is effective tool which organisation implementing effectively in order to
analysed the external and internal environment which result as providing strength due to easily
beat competitors effectively.
SWOT Analysis
It is tools or framework which organisation effectively adapting because they know about
the internal strength and weakness of company as well as examined the threats and opportunities
are available at market place. On that basis formulated strategies and gaining competitive
advantages. In relevance of organisation, it utilizing these methods in order to enhancing
profitability and productivity of company (Merenheimo, 2017).
Strength
 It is biggest strength of Brichbox is that
attracting large numbers of customers
in order to utilizing effective
promotional tools such as whats’app,
face book, twitter and instagram.
 It includes refers to utilizing advanced
technology so easily gaining
competitive advantages as well as
achieving the organisation goal and
objective of company.
Weaknesses
 They are using effective tools and
techniques so it faces problem
regarding the financial sources which
result as difficult to expanding business
operations (Bughin, J., 2017).
 On that basis there are biggest
weakness of organisation there are
ample numbers competitors so they
accordingly preparing strategies.

Opportunities
 They are using advanced technology so
it is opportunity to attracting large
numbers of customers.
 It refers to providing wide range of
products and services so they easily
expanding their business operation in
another country (Li, 2020).
Threats
 The biggest threat of an organisation
they utilizing the more resources so it
negative impact on environment which
affect the business functions and
operations.
 Due to COVID-19 organisation faces
crises so it is developing threat for an
organisation as well as affect the
profitability and productivity of
company.
Therefore, it is process which effectively using SWOT framework which analyse the
organisation ability and capability on that basis formulated strategies in order to gaining
profitability and enhancing productivity of company. In relevance of organisation, it is stated
that internal and external environment is essential process in order to focus the market situation
and condition.
Examine emerging digital business models and challenges associated with information security
threats and ethics in general.
Digital business models and studies are used to gain competitive advantage within a
specific sector. It is important to focus on these models as they help in accomplishing goals as
well as objectives in most efficient manner. In context of Birchbox, they also used these digital
business models on the basis of which they are able to target their customers and users in
effective manner (Baxamusa, 2020).Through using of these models it is also easy to make
decisions within process which are beneficial for achieving hair growth as well as development.
There are various types of business model which are explained below-
Opens source model- Open source model is a kind of a software development tool
which is used by many enterprises who run their business digitally. it is most commonly used
software with highly configuration and features for collaboration sharing of information
publishing and transform and development. As a name suggest it is open for everyone but in

many cases to access to more additional features of the software development many enterprises
charge for or subscription amount.
Advantages-
 Allow accessing- By use of this digital business model it is easier for chosen cooperation
to use the software development process and implement strategies effectively.
 Simple & cost effective- Another benefit of using this model is that it is simple to
understand by any individual as well as cost effective as compared to others payment
model with charges higher fees (Dellermann, 2017).
Disadvantages-
 Vulnerable to malicious user- As it is open source model which can be used by anyone
it is difficult to maintain a security level in this development process because not
everyone can have a good use of this software.
 Not user-friendly- Every organisation uses their own operating system and and devices
on the basis of which they operate their business activities and operations. It might be
possible that this open source software does not work on every device properly.
 Free model- It is also known as freemium model which is being considered as most
popular in digital marketing field and is used at larger scale. It makes it easier for both
users as well as enterprises to access free version of product or a service can use it for
first time. After trial they have the alternative option whether to subscribe for more
features or not.
Advantages-
 Easy to use- Basic version of this model is very simple which increases potential ability
of a corporation to use it for their work.
Disadvantage-
 More beneficial for subscribed users- This free model is mostly beneficial for those
who have been subscribed to it which allows him to access more features and it increases
competition level for non-subscribers users.
 Challenges linked with information security threats and ethics are-
 Virus- Virus in computer field is bound to be occurring at any time. These are also
considered as biggest threat in information security because they are defined as kind of a
computer programs which modifies or changes themselves within a computer or files. In

context of selected enterprise, competitors can use search viruses to steal the information
of a rivals (Lioukas, 2016).
 Unauthorized access- In this digital world and high end technology field many hackers
are present within a society or a community who has capability to access in illegal way to
information security and system. In reference of chosen entity, they should news a proper
IT department and skilled employees so that it is easy for them to prevent from such
problems.
So, from above explained paragraph, it has been seen that digital business models and ready
to be used which help in implementation of strategy and tactics which are beneficial for
achieving goals. Moreover, information technology and security is an essential part of online
business and organisations. It is necessary to determine threats or risk related to them so that
problem or issue does not arise in future period of time.
Discuss importance of new collaborative relationships & strategic alliancesthrough digital
technology for implementing personalisation.
In this competitive world, it has become essential for many organisations to use his
strategic approach of getting collaborative relationship and strategic alliances on the basis of
which it is easy for them to expand their business activities at larger scale. It is necessary for
digital enterprises to enhance and increase their competency level in a market because certain
situations can arise at any time which gives more importance to this collaborative relationships
as well as strategic alliances.
Collaborative relationship is defined as an agreement between two or more than two
people or organisations on anagreed contract of sharing profit& risk to achieve desired goals.
The sustainability period of collaborative relationship depends upon trust between these parties
(Lioukas, 2016).
Strategic alliances- Strategic alliance refers to contract between two companies or
enterprises with purpose of achieving or completion of project.It is a critical process and
procedure which took a deep level of market knowledge and critical thinking approach which is
helpful for understanding others point of view so that it is easy to implement personalization.
Importance-
By developing an effective collaborative relationship, it is beneficial for Birchbox
toincrease and enlarges their product portfolio as well as users base in more foreign countries.

Through adapting of strategic alliance it is easier for chosen enterprise to access to more new
resources increase client base and competitive skills of employees.
Furthermore both of these are beneficial for selected entity to increase their brand
goodwill by merging up with other organisation. It is essential for them to conduct a proper
internal analysis so that it is easier to examine these processes.
In context of discussed paragraph, it has been also seen that throw using this two processes
it is easy to implement personalization in business because clients as well as customers are
targeted on a personal level which increases relation between both.
Compare and contrast digital business and e-commerce. What are the E-Commerce principles
and discuss how they could be applied to digital businesses
E-commerce as well as digital business both is essentials which are needed to be
considered to achieve competitive benefit and increase the survival period of business.
BASIS Digital business E-commerce
Meaning
Digital business is defined as
carrying out market activities using
online social media and tools
(Mandal, 2018).
E-Commerce refers to
purchasing and selling of
products as well as goods over
the internet through websites.
Objective Main purpose of digital business is to
implement market activities on social
media or digital platforms.
Main objective of e commerce
is that to carry out the exchange
process of selling goods and
products in a protected and
secured manner.
Business plan & e -commerce principles-
Be-aware of returns- This principle suggests that businesses which are running their
operations and activities on internet should be aware and active about customers returns product
and their date as well as time so that it is easy to track them. This is e-commerce principles can
be applied to digital business of Birchbox as because through this weekend integrate and engage
customers with their brand.

Responsive e-shop- It is also to be considered as important principle of e-commerce in
which it shows that it is necessary for enterprise to be responsive when operating digitally so
that they are able to examine and analyse customers need and wants, queries, issue of
customers (Öven, 2020).
Payment methods- It is an important principle which is needed to be focused an adopted
in which various types of e wallets and payment modes required to be used by digital businesses
so that it is easy for customer to make payments.
Know target audience- In this principle of e-commerce it states that it is important to
have an appropriate knowledge about targeted customer audience so that it is easier to make
decisions within a marketplace. Knowing target audience is also helpful in using of resources in
efficient manner (Remane, 2016).
CONCLUSION
After a brief analysis of above report, it has been concluded that this is and social media
play important role in achieving goals within a period of time. This report gives brief
information about how enterprises are going digital in market. So, discussions have been made
about trends, advantage and disadvantage of virtual business, SWOT analysis and situational
analysis, different digital business models. Moreover, collaborative relationships and strategic
alliances, difference between digital business and ecommerce has been briefly explained. It has
been evaluated that it is important to be aware about market so that strategies and tactics are
implemented efficiently.

REFERNCES
Books and Journals
Sturgeon, T.J., 2019. Upgrading strategies for the digital
economy. Global Strategy Journal.
Merenheimo, A., 2017. Enterprise Architecture in Digital Business'
Strategy Making.
Li, F., 2020. The digital transformation of business models in the
creative industries: A holistic framework and emerging
trends. Technovation, 92, p.102012.
Bughin, J., 2017. The best response to digital disruption. MIT Sloan
management review, 58(4).
Kim, J., 2018. Market entry strategy for a digital platform
provider. Baltic Journal of Management.
SAPUNENKO, G., 2016. Internship report on the creation and
implementation of a digital business strategy in a coworking
and event space.
Al-Ali, A., 2020. Digital Strategy Formulation: An Investigation
with Design Sprints and Deep Learning (Doctoral
dissertation, University of Cambridge).
Baxamusa, 2020. Does policy uncertainty increase relational risks?
Evidence from strategic alliances. Financial Management.
Dellermann, 2017. Innovation risk in digital business models: the
German energy sector. Journal of Business Strategy.
Lioukas, 2016. Effects of information technology capabilities on
strategic alliances: Implications for the resource‐based
view. Journal of Management Studies,53(2), pp.161-183.
Mandal, 2018.Exploring the importance of collaborative assets to
hospital-supplier integration in healthcare supply
chains. International Journal of Production Research,56(7),
pp.2666-2683.
Öven, Covid-19, 2020: How does it affect international e-commerce
firms?.
Remane, 2016, June.Discovering New Digital Business Model
Types-a Study of Technology Startups from the Mobility
Sector.In PACIS (p. 289).
Tolstoy, 2020. The development of international e-commerce in

retail SMEs: An effectuation perspective. Journal of World
Business, p.101165.
Xu, 2019. Digital business model effectuation: An agile
approach. Computers in Human Behavior,95, pp.307-314.