Digital Business Case Study Analysis: Brichbox, Marketing and Strategy

This case study analyzes the digital business strategies of Brichbox, a US-based online subscription retailer focusing on personalization. The report explores key trends, advantages, and disadvantages of managing a virtual business in a global environment, including the use of AI, IoT, and blockchain. It compares and contrasts situations, presents a SWOT analysis focusing on personalization, and assesses emerging digital business models like open-source and free models. The analysis also addresses challenges related to information security threats and ethics, along with the significance of collaborative relationships and strategic alliances facilitated by digital technology. Finally, it compares digital business with e-commerce and discusses the application of e-commerce principles to the digital business model, providing a comprehensive overview of Brichbox's marketing and operational strategies.

Digital Business -
Individual Case Study
Analysis

EXECUTIVE SUMMERY
The following report is based on Brichbox company in order to understand effective
concept of marketing mix that offers various benefits to company for attaining goal and
objective. For this appropriate goal is to determine marketing essentials as well as carry out
effective discussion about main role and responsibility of marketing environment along with
effective interrelationship between marketing and other units.

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Discuss the key trends, advantages and disadvantages of managing virtual business in the
global environment.................................................................................................................4
Compare & contrast situations and SWOT analysis. Perform a situational analysis for
Brichbox focussing on personalisation...................................................................................6
Critically assess emerging digital business models & challenges associated with information
security threats & ethics in general. Cary out a critical analysis with relevance to case study
scenario...................................................................................................................................8
Critically evaluate the significance of new collaborative relationship & strategic alliances with
the help of digital technology for implementing personalisation.........................................10
Compare & contrast digital business along with e-commerce. What are e-commerce principles
& discuss how they could be applicable to digital business.................................................11
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Digital business is formulation of new business by describing digital & physical world as
this market sector is very wide and dynamic as well as expanded at larger scale. It include
effective utilization of Internet digital tool and technologies along with social media platform
and techniques. In which the following report discuss the brief knowledge about significance of
personalisation & uses of digital business (Sousa and Rocha, 2019). In which, Brichbox is
selected for understanding all terms. It is a retailing firm and established their business in U.S.
For which company deals in online subscriptions & prominent services related with the
expansion by focusing on personalisation. In this present discussion about suitable benefits along
with drawback of managing virtual business, significance of technology is covered. Emerging
digital business models, situational analysis and challenges which are related with information
security ethics & threats is also included. Formulation of strategic alliances & digital business
considering the e-commerce principles are devised.
Discuss the key trends, advantages and disadvantages of managing virtual business in the global
environment.
There are some of the key trends that are affecting the functioning of virtual business as
mentioned below:
Artificial intelligence: Organisations are implementing AI in different process to
enhance their operational efficiency and future informed decisions in terms of innovating new
products.
Internet of things: The IOT is leveraging the network connections for facilitation of
communication systems and devices. It involves adding of smart sensors to the connected
devices so that there can be creation of a efficiency atmosphere for the users.
Block chain: It is touted as the disrupter technology trends that are leading to
establishment of bitcoins & cryptocurrencies (Alvarez, ed., 2016). It is crucial for application of
block chain as “smart contracts” that is used in business in a financial form of security that is all
online business are made more secure.
Advantages of virtual business:

For birch-box there are some of the advantage so using the virtual business management as
mentioned below:
 It assist in improvement of business scalability and there is higher growth potential.
 There can be use of higher creativity and innovation for the purpose of formation of
effective business strategies that can assist for achievement of a competitive advantage
for Birch-box in the changing dynamic environment.
 In case of virtual business the working reports and communication is taking place easily
through online mediums. This tool is facilitation the swift responses.
 Virtual teams also assist organisations that they can explain their present potential labour
markets by enabling thyme to further hire and retain their employees irrespective of their
physical locations that may act as a barrier in some instances. For birch box there is lower average cost as there is lower estimation of cost related to
paying for utilities. Leasing of office spaces and there is no requirement of physical
office spaces.
 Personalised promotions: With the use of digital media application by business there is
use of machine learning technology by Birch-box that is leading to generalisation of
personalised promotions that can ensure a better promotion appal for customers
(Nambisan, Zahra, and Luo, 2019). They are focussing on the sample purchase history of their customer and then using their
supercomputers for the purpose of attracting their customers with development of some
great offers that are tailored specifically for their customers.
 Personalised recommendations can also be developed through these e commerce sites
where there can be adoption of machine learning technologies to analyse the real time
behaviours, previous transactions of the target customers and their recent buying
behaviour in order to make correct forecasts.
Disadvantages of virtual business:
Some of the disadvantage of virtual business are mentioned below:

 Lack of centralization: In organisations there can be instances where there is lack of
centralisation or a single place for each employee to work together. In Birch-box with the
us of complete online structure there can be difficulty to manage the self discipline at
workplace and employees might face the issue of lack of structure.
 There is always a threat of competitor using the similar strategy that has a negative
impact on the present sales and functioning of Birch-box. It may also affect their present
base of customers in a negative manner.
Compare & contrast situations and SWOT analysis. Perform a situational analysis for Brichbox
focussing on personalisation
In marketing personalisation is a process of meeting up with the requirements or needs of
individual with the help of using data analytics. Due to development, it become vital to focus on
personalise in order to maintain positive & loyal relationship among both parties (Remane and
et.al., 2017). In context of given firm Brichbox, they focuses on this concept of personalization
as it aids to enhance the user experiences in positive manner. Situational analysis means
combination of both internal and external environments that is adopted by firm in order to
analyse consumers, competitor and the competition at marketplace. In relevance to this, porters
five forces models are being used by given firm as follows:
Porters five forces analysis: This model is used by the entities of company in order to
analyse the competition edge at marketplace as well as aids in determining the threats &
competitors. It includes several factors which are as follows:
Bargaining power of suppliers: This is a competitive factor in which the bargaining
power of supplier is determined (Ballardini, Ituarte and Pei, 2018). In context of Brichbox, they
have so high bargaining power of suppliers as in marketplace there are many vendors available
which offers similar products with more better options in order to carry out operation effectively.
Bargaining power of consumers: In this bargaining power of consumers is determined as
moderates for the given firm because in marketplace there are ample number of end users which
consume services or product offered by company as well as various users who are willing to buy
and get subscription of enterprise.
Threat of new entrain: In context of given company Brichbox, the threat of new entrant
is lower as it is retailing firm of cosmetic products and for gaining entry, lot of time is required.
So to target new consumers is not easy task in this sector. Therefore given firm can easily

enhance its market shares by acquiring work with online mode (Dellermann, Fliaster and
Kolloch, 2017).
Industry rivalries: In cosmetic industry, the intensity of competition is comparatively
high. It has been analysed that it is vital for given firm to execute strategies in order to deal with
competitors in effectual manner. Extent of competitors is high when expectation of consumers
are changeable & rising as the availability of alternative option are too high.
Threat of substitutes: This is another factor which structured company in various modes.
Substitutes means replacement of parent good by other product. In relevance to given firm, threat
of substitution is moderate as they acquire personalisation by which they easily targets their
potential consumers (Nwankpa, and Datta, 2017).
SWOT analysis
It is a model which is adhere by management team of company in order to analyse the
internal strength & weakness along with external opportunities and threats. Brichbox company is
adopting this framework for understanding internal factors that assist the ability for taking
advantage of new opportunities.
Strength Weakness
 Primary strength of Brichbox is that it
operates its business with online mode
in order to target consumers by
focusing on personalization that makes
different from other players of markets
(Farani, Karimi and Motaghed, 2017).
 Due to low lack of financial resources
they are facing numerous problems
while expansing their business as well
as in adopting new technologies.
Opportunities Threats
 With the help of advanced technology
they can assessing various more
potential consumers for the increment
of sales and profitability.
 Biggest threat of Brichbx company is
that due to excess of resources the
environmental practitioners in local
community may put impact adversely
on business.

From above discussed situation analysis it has been analysed that the bargaining power of
supplier is very high and that act as threat for company whereas the bargaining power of
consumers is low which act as strength for company and with the help of that they can overcome
their threat of substitution. Additionally the threat of competitive rivalries in this industry is very
high and that also act as threat of company and that can be overcome with the help of adopting
advanced technology.
By comparing both analysis, it is stated that internal & external environment are
important to focus for analysing the market situation in effective manner. It is the responsibility
of mangers to ensure that both are needed and effectively utilised for achieving the goal of
company.
Critically assess emerging digital business models & challenges associated with information
security threats & ethics in general. Cary out a critical analysis with relevance to case study
scenario.
In business unit it is important to use marketing strategies & models for the
accomplishment of organisational goal. In relevance to this there are various kinds of emerging
trends related with the digital business models. Few are as follows:
Open source model:- This model refers to a decentralised software that encourages open
collaboration. The main principles of this model is to develop peer production with products
such as source code, blueprint & documentation that is freely available for public (Kraus and
et.al., 2018). These are the most used digital business models.
Advantages:
Provide access: With assistance of this digital bushiness model, it become easy for firm
to access software & utilised it accordingly.
Cost effective: This model is considered as cost effective as any individual or entity can
use this and it acquire moderate amount of investment for subscription of additional features.
Disadvantage
Vulnerable to malicious user:In such kid of open sources business model, it is not
necessary that each and every individual will use in correct manner or in right way. Many
individuals will use with wrong intention also. In that there are many users who took advantage
of this (Peng, 2017).

Not user friendly on all devices: This is another drawback of this digital business model
as it is not vital or compulsory it work on every smart devise. Therefore, it reflect that is not user
friendly.
Free model
This is another digital emerging business model which makes easiness to user in order to
acquire this model effectively as well as for using product or services in free. Afterwards,
monetization is bing carried out after large number of individuals have used goods and services.
By this, it become easy for both consumers and company to attain organisational objective. In
reference to this, Google, Facebook, Instagram etc. are example of this free model.
Advantage:
Enhance image of company: With the assistance of this free model, entities of company
will able to increase their good will at marketplace and that tends to creation of brand awareness
at global level to huge users (Paul and et.al., 2018).
Enhance productivity: By using this model, enterprises will able to enhance productivity
along with profitability as it will not require any investment to carry out this model so the
working efficiency will improved.
Disadvantage:
Uncertain situations: Main drawback of using this model is that it effects when
uncertain events might arise such as trending behaviour of consumers, market trends etc.
challenges linked with information security threats & ethics are:-
There are various kinds of information security which are discussed below:-
Consumer virus- It has been analysed that these threats are the biggest threat in
information security as these are the examples of computer programmes and it modifies
computer programs files into its own codes. In context of given firm Brichbox, other players of
markets puts these computer virus into their programs in order to identify the strategies and
information of security systems (Fan, 2016).
Unauthorized access- With the enhancement of digital technologies, there is also
increment in hackers for accessing others information security systems. This is the major
changing issues that is faced by company and for this entities of selected firm need to focus on
that such as need to update information carefully for both websites & applications.

Hence from above analysis, it has been analysed that using of digital business model in
enterprise make easy for them to reach put potential consumer easily. Further, it is easy to assess
various threats related to security of informations which are essential to use careful where they
are operating their business via internet. Therefore, critical evaluation of models has been carried
out briefly.
Critically evaluate the significance of new collaborative relationship & strategic alliances with
the help of digital technology for implementing personalisation.
Due to enhancement of competition, many firm uses strategies & tactics for the
development & growth. In context of Brichbox company, they are also considering the
collaborative relationship with the purpose of working together as well as for attaining the goal
of company. Collaborate relationships can be defined as a process of performing together for
achieving common goal (Standing and Mattsson, 2018). Also strategic alliances are being used
for executing personalization. Significance of collaborative relationship & strategies alliances are
explained below:
By focusing on collaborative relationships, it is vital for business unit to expand their
business activities are international level by sharing profit & loss. In relevance Brichbox, they
are also have been established this relationship with other company by creating cooperative
relationship with Witherspoon and her company Draper James.
Another importance of this is by adopting collaborative relationship & strategies
alliances, it is easy to aligned & attain goal in effective manner. Further, personalisation is
implemented by entities of firm with the help of digital technologies business model at advanced
level. For instance, strategic alliances & collaborating with draper James, Brichbox is able to
satisfy the needs of individual in personalised as by delivering of two monthly Brichbox instead
of one.
Both of these are important to adhere as it assist in examine the data of user by gaining
more reliable information about consumers which aids in determining the individual needs
effectively (Venkatesh, Mathew and Singhal, 2019).
Moreover, both of them are being used by digital technologies which helps in execution
of personalisation properly. In context of given company, they are focusing on expending their
collaborative with more firms foe which they need to access large amount of resources & more
consumers.

So, from above stated points it has been examined that it is vital to use both collaborative
ans strategic alliances in order to attain organisational goal. Both of these help in effective
execution of personalisation by creating positive relationship with each other. Main motive is to
maintain the sustainability for longer time by addressing all needs & requirements of individuals.
Compare & contrast digital business along with e-commerce. What are e-commerce principles &
discuss how they could be applicable to digital business
In a business unit, both digital and e-commerce business need to be adopted for the
smoothing running of business operation. In retail industry, most of companies simultaneously
adhering digital business with E-commerce. With emerging market trends, it is vital to have
awareness about that foe aching goal of company. Both of these are different from each other &
comparison in between both are as follows:
Basis Digital business E-commerce
Meaning It tends to business unit which
utilised technologies for
gaining competitive advantage.
It tends to selling of goods
with the help of online mode
of internet.
Objective The main motive of using
digital technologies is to
compete with developing
world with the help of using
digital platforms.
Purpose of e-commerce is to
sell commodities with online
mode in secured manner.
Application Digital business is used in
various & at wider scale for
instance Netflix.
E-commerces is mainly used
by retailing firm such as
Amazon.
It has been demonstrate that, it is essential to focus on both of these technologies in order
to surviving in competitive era. For this it is essential to use these in effective manner so that
problem and issues will nor arises. In context of both, there are numerous principles that are
being utilized or focused as follows:
Business plan: This is considered as most effective principle of e-commerce as it reflects
planing related with business & carried out for further process. It is time consuming process but

worthwhile also. It requires proper skill, knowledge in order to carry out market research and for
formulation of strategies. Without execution of plan it is not possible to determine risk that are
being associated with conduction of operation. Some of objective that it includes are as follows:
Responsive e-shop: This is another crucial principle which specify that e-commerce is
required to be responsive & have awareness about all consumers problems by which positive
attraction will be formed. Company which response rapidly and posses ability to enhance their
brand value at larger scale.
Be-aware of returns: In this principles, business entities have awareness about the date
of returning of parcel or products that consumers wish to exchange as it is important for keeping
update about return policies for gaining trust of consumers towards business (Senyo, Liu and
Effah, 2019).
Use many payment methods: This principles reflects that while creation of E-commerce
business, it is essential to usage alternative and wide variety of payments methods like e-wallets,
debit cards, credit card, online transaction such as Google pay, phone pay etc. additionally, cash
delivery will also used in payment methods. It is because consumer use various modes of
payments.
Understand target markets: In order to bring e-commerce business it is essential to have
proper knowledge about target audience for gabbing more peoples so that decision would be
form accordingly. By this risk can be mitigates.
CONCLUSION
From above discussed report it has been analysed that digital businesses is rising &
emerging trend with the enhancement of competition level, each business unit is inter connected
with digitalisation. It is crucial to have awareness about digital tool as it leads to achieving goal
of company effectively within small time frame. In which this report gives brief information
about focusing on personalisation within retailing sector. Therefore, discussion has been made
about concepts of virtual business, analysis of environment with the help of SWOT is conducted.
Along with business model, collaborative relationship and comparison between digital and e-
commerce. Hence, it has been evaluated that it is vital to adopt digital business in this modern
competitive world for attaining all objectives effectively.

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