Digital Business Management: Card Factory Strategy Recommendation

This report analyzes the digital strategy of Card Factory, a leading UK-based retailer of greeting cards, gifts, and related products. The report begins with a short analysis of Card Factory, detailing its business model, market position, and current digital presence. It then recaps key digital transformation trends in the retail industry, drawing on the student's group presentation and focusing on trends relevant to Card Factory. The core of the report provides a digital strategy recommendation, utilizing business model, brand & customer experience, cultures & processes, and data management canvases to identify areas for improvement and propose strategic initiatives. The report also includes a brief discussion on innovation within the context of Card Factory's digital strategy. The report is a comprehensive assessment of Card Factory's digital landscape, offering actionable recommendations to enhance its online presence and customer engagement, with the ultimate goal of driving business growth.

Running head: DIGITAL BUSINESS MANAGEMENT
DIGITAL BUSINESS MANAGEMENT

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Table of Contents
Short Analysis of your chosen organization..........................................................................................3
Recap Main Digital Transformation Trends in the Industry..................................................................4
Digital Strategy Recommendation.........................................................................................................6
-Business Model canvas....................................................................................................................6
-Brand & Customer Experience canvas.............................................................................................7
-Cultures & Processes canvas............................................................................................................8
-Data Management canvas...............................................................................................................10
-Innovation......................................................................................................................................11
References...........................................................................................................................................12

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Short Analysis of your chosen organization
Card Factory is leading speciality retailer for dressings, greeting cards, as well as, gifts of
UK. It emphasizes on mid-market segment and the value of large and resilient greeting cards
market for the UK. Moreover, it provides a range of corresponding products to customers that
are related to cards that could be provided on occasions. The mission of the card factory is to
aid consumers in celebrating their moments by offering a wider category of the wrap, gifting
products, dressing, wraps, quality cards, and party products at affordable rates. This group
principally deals in the nationwide chain in over 950 card factory stores and by using its
transactional websites such as www.gettingpersonal.co.uk and www.cardfactory.co.uk (Card
Factory, 2019).
Key Facts
 The headquarter of card factory is located in Wakefield, West Yorkshire
 It is a high-quality retailer that has £1.4 billion worth in the UK greeting cards
environment.
 It provides superior products at reasonable rates where a large number of cards is sold
for less than £1 Revenue of £436.0 million in the year of 2019 that is increased by
3.3% in the last financial period.
 It has about 44% of sales from small gifts, gift dressings, as well as, party products. It
is also a related market that is predicted by management with the worth of £2-3 billion
(Bohnsack, et. al., 2018).
 It has over 975 stores in across of UK that has an average of about 50 stores and it
was opened a year over the last 10 years.
 It is vertically integrated to the business model with in-house printing services, in-
house design team as well as, central warehousing services.

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 It has 7000 workforces in the nation of UK and 6000 additional seasonal employees
are hired in per annum
 It has also nearly £6m increased for supporting the Macmillan (Ustundag and
Cevikcan, 2017).
Recap Main Digital Transformation Trends in the Industry
(Sources: Bohnsack, et. al., 2018).
It is analyzed that global consumer perceptions survey indicates that in spite of economic
uncertainty, there are over 70% of UK consumers who are expected to spend same and more
in the year 208 as compared to 2017. This kind of spending is increasing in the online sector.
There are about 90% of shops on Amazon as well as, over third are Amazon prime members
that have 82% citing free delivery because of their key motivation (Bohnsack, et. al., 2018).
Along with this, though in-store is focusing on frequent shopping channels of the customer,
yet PC and online channels are highly used by the company. It is addressed that there is a
need to enhance in different aspects related to shopping experience with easy to use, fast, and
in-store wi-fi services (Ustundag and Cevikcan, 2017).
Hence, UK shoppers wish all that benefits related to digital platforms. However, they also
want to get a touch of humans. As per the consumer intelligence study, the experience is
related to everything where 60% of UK people stated that application of technology to

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improve the customer experience is related to lose touch with the element of human (Geurts,
2018).
Along with this, there are 50% do not believe that digital experiences would remove the
requirement for genuine individuals as compared to 43% internationally. It is addressed that
there are different factors that could be considered in customer experiences such as friendly
and welcoming services, convenience, as well as, speed and efficiency. It would aid to
capture the requirement for integrating the people and technology (Pesch, Endres, and
Bouncken, 2018).
(Sources: Petković, Pindžo, and Agić-Molnar, 2018).
The impact of transformation on digital technology in retail sector of the UK is significant
and increasing. As per the figures from Statista, e-commerce revenues of business to
consumers are predicted to increase by 16% from £98.4 billion in the year of 2019 to £114.5
billion by the year 2022. Since a consumer is continuing to switch more for spending towards
online purchases. The retail sector cannot afford for eliminating the incredible impact that
digital technology is creating on the conventional business model (Petković, Pindžo, and
Agić-Molnar, 2018).
It is illustrated that there are about 55% of European revenues would entail digital touch-
points by the year of 2021 whether via direct digital transactions and digital influences on in-

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store revenues. Along with this, digital retail is a central stage in existing times and retailers
have to address new modes for retaining and engaging consumers as well as, risks are
becoming inappropriate (Vemuri, 2017).
Digital Strategy Recommendation
-Business Model canvas
Business Model Canvas
Key Partners Key Activities Value PropositionsCustomer Relationships Customer Segments
 Social
Networks
 Distributors
 Suppliers
 Stylists/
models
 Payment
Processing
 Delivery
agents/
shipping
company
 Vendors
 Experienced
Stylist
 A modern
inventor that
has great gift
sense.
 Investigation
of rivalry
offerings
 Selling top of
line gift cards
 Marketing/
platform/
system
Quantitative:
 -speed of
delivering
services
 -Cheap rates
 -Range in
products and
services
Qualitative:
 -Identifying
consumer
service
 -Handiness
(Pesch and
Bouncken,
2018).
Incentives
 Offer
incentive for
scholars as
well as,
entails
advantageous
Provide:
 Modern
 Inexpensive
 Wide
category
Reward cards
 -points to purchase
the product
Credit Lines
 -Permits consumers in
order to reimburse in
future
Trust as well as,
Safety
 -offer reliable site as
well as, deals
 -Need least data
 -Safety of consumers
 Young
 Entrepreneur
 -Affordable
business cards
with quality
 Night out
 -Casual cards to
different age
group
 -semi formal
cards
Addiction of cards
towards Online
Shopper
 -Prompt delivery
 -Quality cards
 -Products
 -Affordability
 -wider category
College scholars
Focusing on:
 Affordability
 casual
 Modern
 Wider range
(Vobugari,
Srinivasan, and
Somayajulu,
2017).
Key Resources Channels
 Customer
databases
 Physical
Property
 Informed
sales team/
stylist
 product
inventory
 competitive
rates
 Advertisement
-paper
-billboards
-signs
 Commercials
 Website
 Word of mouth
 Application
-Apple and Android
application
Cost Structure Revenue Streams
 Fixed Cost due to rental property
 advertising expenses
 product as well as, inventory supply
 utility bills
 Labour expenses
 Viable salaries of workforces (Mahgoub,
Arvidsson, and Urueña, 2018).
 Sells about product as well as, services
 Transaction sells obtained through product
 Transaction sells obtained through Services
(Briken, Chillas, and Krzywdzinski, 2017).

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-Brand & Customer Experience canvas
It is hardly seen that in some circumstances after getting the product with Card factory, it can
be a significant concern regarding the product that is increased by customers. Therefore, there
is a requirement for offering superior cards to purchasers. There are facts that management of
card factory can never compromise regarding quality of cards they distribute and therefore,
there cannot be any concern regarding delivering customer quality (Chaffey, Hemphill, and
Edmundson-Bird, 2019).
After buying products in different cases, consumers can focus on that they can move with
respect to other brands in order to consider the higher pricing. But there is not something,
Advertisement/
public relation
Advertisement
boards and
Television
commercials
Social media
Twitter,
Facebook, and
Instagram
Word of mouth
Good reviews
received via
friends and any
known persons,
word of mouth
by celebrity
Selecting
the brand Addressing the
products of brand
with another
brand.
Selecting
feasible
designs Comparing the
rates with other
products
Identifying
product
quality
Emphasizes on
minimum prices
for cards through
browsing different
shopping websites
Purchasing the product
Customer relation
In current times,
satisfaction extent of
customers towards
brand is reducing a bit
because of pricing and
quality concerns
Social media
Sharing and
commenting in below
photos related to cards
and due to this,
company goodwill can
be improved.
Expectation
Convenient
services
Lesser pricing
Quality product
Experience
The quality and ranges of product is
sound.
The products are accessible through
convenient places.
Heavy rates.
Satisfaction level
Quality: sound
Design: sound
Convenience: Content
Pricing: Discontent

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which could occur regularly. In opposed to this, in certain cases, it is addressed that
customers have received defective cards who ordered those via websites and mobile
applications (Hall and Roelich, 2016).
Value proposition
Card factory can retain several types of consumers via offering loyalty and club cards
because it is advantageous for enhancing the productivity of a firm. It also implements
several strategies like customer-oriented strategy, affordable rates, and product quality. It also
facilitates safe and eases products and services that are endorsed through card factory in their
promotions. Because it is competent for the company in order to retain existing and
influencing the prospect consumers (Ramanathan, et. al., 2017).
-Cultures & Processes canvas
Purpose &
Impact
Trusted for
quality and
values for
helping in
celebrate
Stories & Metrics
•The customer’s choice for gifts,
cards, party, and wrap, in-store and
online.
•Products could be bought through
online and offline e-platforms.
Values
It is part of story. It
is loyal. It is
grafters. It is little
bit mad it led the
way.
Actions
Offering range of quality
cards, party, dressings,
wrap, , and gifting
products at value prices
Value Propositions
Affordable price, customer-
oriented approach, and quality
products
Ease and safe products and
services
Customer segments
Millennial
Family customers

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(Sources: Card factory, 2019).
From the above chart, it can be stated that the purpose of this research is to address the
trusted quality and values for supporting in celebrate. This purpose has a positive impact on
the customers. The values of the card factory are part of the story that it is loyal and grafters.
Along with this, Card factory has focused on implementing several quality wraps, designers,
gifting, party, as well as, cards at affordable rates. It has also emphasized on different
activities such as safety and compliance are moved in across from retail operations to central
operations in order to enhance the extent of support and focus (Birkin, Clarke, and Clarke,
2017).
It also focuses on the development of innovative modules associated with health and safety
training on new platform of Athena training. It has replaced the paper-based training modules
as well as, deploy the refresher online training modules for all colleagues of retail. It has also
made development in supporting colleagues and an ongoing team via their NEBOSH training
as well as, rolling the safety, and health and environment traineeships. There is effective
gratitude for compliance as well as, safety trainee who is nominated for every woman within
an award of a retail rising star (Hall and Roelich, 2016).
The value proposition is associated with the customer-oriented strategy, affordable rates, and
quality products. Along with this, another value proposition is ease and safe products and
services. Card factory has also segmented the two kinds of customers named as family
customers and millennials (Briken, Chillas, and Krzywdzinski, 2017).

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-Data Management canvas
(Sources: Mahgoub, Arvidsson, and Urueña, 2018).
In order to make sure of the significant business development management that is
emphasized on business-IT alignment principle. IT and business must work with each other
in each layer of BDM in order to develop the value from recorded data. It is identified that
each business aspect of card factory is related to information technology and it could execute
the solution for the corresponding layer of the model (Mahgoub, Arvidsson, and Urueña,
2018).
The resulting reference model is known as big data management canvas in analogy to the
business model canvas. Since it can be implemented as a blueprint for representationally
paint the big data solutions. The model facilitates 10 fields of action in order to plan and
describe the big data application. The purpose of this model is to facilitate an outline of
reference related to big data processing information system. It is combined with the creation
of business value. It could be implemented to either illustrate the existing big data system and
planning new big data applications (Vobugari, Srinivasan, and Somayajulu, 2017).

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-Innovation
Artificial Intelligence
Customers expect the assistance and answers at any time and any day as well as, convenient
and easier customer services. Artificial intelligence (AI) is a significant mode for delivering
the attentive 24/7 services, which a shopper can expect. For example, Al-driven chatbots
could perform as an online store associate, promptly responding towards the queries of
customers via chatbot and text messages. Chatbots could be upsold and cross-sell cards as
well as, pointing the consumers with respect to producing they could be interested in and it
should have relied on the engagement of customers (Pesch and Bouncken, 2018).
Chatbots are significant and rapid respond servicing technique, which could be supporting in
sealing the conversions as well as developing new sales. Moreover, chatbots could deliver the
messages that are consistent with the voice of the brand. There is no need to worry that
chatbots would share something that is not supposed to and it would rude and impatient with
questions of customers (Vemuri, 2017).
Unified Commerce
Unified commerce is a fully integrated software channel that organizes all distinct systems
that a retailer practices for conducting the business from one interface. Before the concept of
unified commerce, a retailer can use distinct system in order to manage elements of their
business. For instance, one system of card factory could be dedicated to running the shop of
e-commerce, a different system could run the card factory store and another would deal with
the call center. As well as, it is a totally separate system that would take care of loyalty
initiatives (Petković, Pindžo, and Agić-Molnar, 2018).

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References
Birkin, M., Clarke, G., and Clarke, M., 2017. Retail location planning in an era of multi-
channel growth. Routledge.
Bohnsack, R., Hanelt, A., Marz, D. and Antunes, C., 2018. Old wine in new bottles? A
systematic review of the literature on digital transformation. Academy of Management global
proceedings, (2018), p.197.
Bohnsack, R., Hanelt, A., Marz, D. and Marante, C., 2018, July. Same, same, but different!?
A systematic review of the literature on digital transformation. In Academy of Management
Proceedings (Vol. 2018, No. 1, p. 16262). Briarcliff Manor, NY 10510: Academy of
Management.
Briken, K., Chillas, S. and Krzywdzinski, M., 2017. The new digital workplace: How new
technologies revolutionize work. Macmillan International Higher Education.
Card Factory. 2019. About us. [Online]. Available at:
https://www.cardfactory.co.uk/aboutus.htm (Accessed: 08 January 2020).
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2019. Digital business and e-commerce
management. Pearson UK.
Geurts, A., 2018. Time to Face the Music: An Explorative Study of Failed Digital
Transformations in the Dutch Music Industry. Academy of Management Global Proceedings,
(2018), p.102.
Hall, S. and Roelich, K., 2016. Business model innovation in electricity supply markets: The
role of complex value in the United Kingdom. Energy Policy, 92, pp.286-298.
Mahgoub, Y., Arvidsson, N. and Urueña, A., 2018. The emergence of a Digital Platform
Based Disruptive Mobile Payments Service. International Journal of E-Business Research
(IJEBR), 14(3), pp.1-19.

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Pesch, R. and Bouncken, R., 2018. How Top Managements Age Influences a Firms Digital
Transformation. Academy of Management Global Proceedings, (2018), p.202.
Pesch, R., Endres, H., and Bouncken, R.B., 2018. Managing digital transformation: the merits
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