Digital Business: Trends, Models, and Amazon's Approach

This report delves into the realm of digital business, exploring the advantages of digital technology and its impact on companies like Amazon. It examines the current trends in digital business, such as the rise of e-commerce, the implementation of AI and machine learning, and the adoption of cloud computing. The report further analyzes emerging digital business models, including e-commerce, marketplace, and ecosystem models, while emphasizing the importance of cybersecurity and ethical considerations. A significant portion of the report focuses on Amazon, detailing its e-commerce principles, strategic alliances, and the company's approach to innovation and customer satisfaction. The report highlights how Amazon leverages digital technology to enhance customer experience, optimize operations, and gain a competitive edge in the market. Overall, the report provides a comprehensive overview of the digital business landscape, with a specific focus on Amazon's strategies and the transformative power of technology.

Digital business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Trends and advantages of digital technology...............................................................................3
Emerging digital business model.................................................................................................4
Relation with digital technology..................................................................................................6
e-commerce principles for Amazon.............................................................................................7
RECOMMENDATIONS.................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The businesses based on digital means are using the help of technology to create new value in
the business model of the company. Digital businesses are the brands which are both digitally
present and also work traditionally. Such businesses are transforming their business and adapting
to new trends with the help of digital technology (Senyo, Liu, and Effah, 2019). Digital business
is the changes coming in the way of organisations using technology and supporting the players
leading to innovation, more revenue and the increasing growth within the market. Digital
business are the key to aim on the creating new experiences with the help of technology. This
gives the companies a competitive advantage over the companies just following the traditional
ways. Amazon UK is one of the highest ranking site running in e-commerce business in UK. The
company holds the highest ranking present across every category in UK as well as among the
sites working across the world (Sousa, and Rocha, 2019). The company started as a online book
store and now has risen attain the super power making it the leading company in the e-commerce
business category. Amazon offers wide range of products from electronics to books and even the
daily needed products and services. This report deals with the advantages of the digital
technology along with the new and emerging business models for the companies such as
Amazon. It defines the relation of the alliance formed by the companies with digital technology.
MAIN BODY
Trends and advantages of digital technology
This is the era of digitalisation which has lead to the rise of e-commerce and digital businesses.
Amazon is one such company which has gained a large customer base with the help of
technology. The opportunities to grow online has helped small companies to reach maximum
people and grow successfully (Wirtz, 2019). Just like traditional business strategies, e-commerce
has the businesses to excel. The advantage of digital technology in the business environments
has helped the employees improve and assist the daily role, random stow and select through wide
range of box sizing algorithms. Software helps in determining shortest way from one place to
another which is an interesting innovation for both customers and organisation to ensure speedy
packing process as well as accurate deliveries. The introduction of Amazon robotics in UK has
helped the company in showcasing the invention in logistics in relation with employees and
customers. It helps in creating a better future (Remane, and et.al., 2017). This digital technology

has helped in looking under the shelves where the products are stored. It provides a quick
approach to things and less time for showing the items in sale and ready to pic up for customers.
The advancements in technology has helped the company in delivering items to the customers in
lot more faster process. It provides more enhanced form of data collected from the customers and
optimising it for analysis (Ismail, Khater, and Zaki, 2017). This helps in driving the business
forward. Technology helps in transforming raw data into insights related to various touchpoints.
The expectations of customers are a lot from a new era company like Amazon. Digital
technology helps in providing more and better overall customer experience and satisfaction.
Implication of using digital technology in the virtual business such as Amazon are used
for offering a higher buying process (Rangaswamy, and et.al., 2020). In this busy world,
customers are offered to spend less time on shopping as they can easily browse through items
and purchase the item they are interested in buying. The technology used in digital business of
Amazon can help in personalising the list after creating them. Sellers can add many images
which defines and showcase their product, category as well as the price. The use of artificial
intelligence in the business has become a digital technology trend. AI is known for speedy
recognition, smart phone assistants, help in navigation and many more. AI is also used to analyse
the interactions and determine the connections. It helps the company to predict the demands and
help the authorities to make better decisions with regards to the usage of resources and
identifying the changes in the pattern of customer behaviour (Nwaiwu, 2018). This leads to
increasing revenues and enhancing personal experiences. Machine learning is the another form
of Al and using them in the robotics process is a digital trend. Robotics helps in automating the
working of business operations, processing transactions and dealing with data while relying on
the approach of emails. It helps in automating the repetitive tasks which used a lot of man power.
Another trend is the edge computing or cloud based computing. This trend of digital technology
is till growing and becoming popular in the businesses to migrate to a cloud based solution. The
data holding in by the amazon is continuously increasing and edge computing helps in solving
problems which come in the way by bypassing caused by cloud computing.
Emerging digital business model
Digitalisation has become very popular in this new era. With the rise in digital businesses, the
need for digital business models is also increased. These business models helps in enhancing

capability and the profitability to serve the customers with the help of using less number of
assets. The use of technology has helped in creating a higher asset for investors offering much
better customer experience as well as scale planning and asset allocation (Holotiuk, and
Beimborn, 2017). Cyber security is not a trend in technology but is important for the company as
threats are constantly new. There are many malevolent hackers emerging in the market who are
trying to access the data from company's site by illegal means. These hackers are not ready to
give up just yet and finding new ways to get in even with the presence of toughest security
measures taken by Amazon. The new and emerging digital business models by providing an
enhanced security. Cyber security is the merging business model till the hackers continue to
exists in the market. It helps in evolving and defend against the hackers in the process. Digital
transformation and use of technology has created a need for meeting customers demand and
stand up to their expectation (Bican, and Brem, 2020). In this process it is important to follow the
ethical responsibility while performing different business operations. The use of digital services
such as cloud computing Artificial intelligence and so on when combined with optimised
operating models can result in driving more innovation in the organisation while having a quick
respond to internal and external factors in a cost optimised way. ethics is important for all digital
transformation companies to follow the agenda and actively embrace it in the company and its
services. Digital professionals are required to perform the right thing with the perspective of
ethics. The definition of ethics can vary across different individuals in this fast moving digital
society (Moore, and Tambini, 2018). The digital initiatives have the potential to offer more
sustainable benefits for increasing the value of organisation and making it sustain in the market
for long time. These benefits can be affected against conflicts raised by decrementing trust and
exploiting the use of digital technology.
Some digital models beneficial for the business for amazon are mainly the e-commerce
model which is very successful for the organisation which sell their products with the help of
online platforms (Larjovuori, Bordi, and Heikkilä-Tammi, 2018). The e-commerce business
model is best way for amazon as it allows the customers to buy almost everything sitting in
homes with the help of internet. It is based on the sided sales approach where the company is
selling its own stocks to the customers. The market place model is also known as peer to peer
model. This is a two sided marketplace which is used on internet. In this model the sellers and
buyer use the third party channel to trade their products and services. however, this business

model is comparatively more complex and dynamic as in the case when there are no sellers, will
decrease the amount of attracted buyers. This will lead the company to loose the customer base.
Addition to this there is a need to carefully demand and supply at the same time. Another type of
digital business model is ecosystem model. This model is also complex but very powerful where
the company can leverage the customers by using different platforms (Leischnig, and et.al.,
2017). With the help of knowledge and data the organisation can retain the existing customers as
well as attract the new ones. This is due to vendor lock in which effects the created ecosystem. It
becomes hard for the customers to leave the digital ecosystem. The process lock in helps in
increasing the revenues of the company.
Relation with digital technology
The companies over all the globe are struggling with the humans economic impacts in the market
(Bock, and Wiener, 2017). There is a sudden need for having collaborative strategies alliances
happening in between business and the services and logistics provided by the organisation. The
companies such as Amazon has send a clear message about the importance of strategic alliances
(Bock, and Wiener, 2017). Amazon has announced partnership to cut the healthy care costs and
improve the services for their employees. Strategic alliance is about forming relations with other
businesses which will help in achieving some specific objectives which cannot be possible to
achieve on their own. The status of the companies are independent while sharing the profits,
benefits and control over the partnership. Strategic alliances are usually formed in the the
marketplace present globally and based in different regions of the world (Xu, and Koivumäki,
2019). The success of Amazon is not a solo contribution but the help of partnership has helped
the company into giving a winning formula. It has build an environment of collaboration where
the partnership ranges from the small sellers to the multinational companies. These
collaborations and the alliances have helped Amazon in pursuing the way of innovation and
generate new revenue streams.
The companies ready to partner up with Amazon is to sell their products with the help of
online marketplace. Amazon has allowed many branded companies to partner with it to release
their products and microsite on Amazon's website (Sathananthan, and et.al., 2017). It helps the
companies create many advantages to sell their products on online platforms and become more
stronger than the competitors. They have received significant amount of growth in their sales.

Amazon can use the data of customers and use the opportunity of creating own private label
brands. The company Kohl has partnered with Amazon in creating more stores all over the
country. Amazon and Kohl have a shared passion and main aim of providing the best customer
service which has helped Amazon gain high points for customer loyalty (Chaffey, Edmundson-
Bird, and Hemphill, 2019). It helped amazon to deliver more innovation and bringing products
more relevant to the customers. This lead to attaining more customer satisfaction for amazon.
The collaboration with the companies like JP morgan and Bershire Hathway has led Amazon to
create joint healthcare venture. The aim behind this approach was to offer a different perspective
of health care in a much more simpler and better way which is more cost effective (Singh, Gaur,
and Agarwal, 2017). The impact of such strategic alliances on Amazon have created many
advantages.
It helped the company gain more economies of scale. With the help of partnership Amazon can
generate economic scale with the involvement of companies to the board set for resources and
thus achieve critical mass required for attaining success all over the globe (Schwertner, 2017). It
helps in gaining the profit of expertise of one another rather than spending time and resources on
individual level. Along with this strategic alliances helps the company to gain competitive
advantage. With the advancements in technology, it becomes hard for the companies to handle
everything on their own. The gaps present in the skills by Amazon are filled by collaborations
with the companies exhibiting the missing skills. Sharing the process of research and
development costs along with the facilities will helps Amazon in attaining good value for money.
Sharing the expertise can help in speeding the process (pages). A well accomplished alliance
helps in gaining the head start in an particular market and prevent other competitors from
entering the same.
e-commerce principles for Amazon
The e-commerce industry is growing day by day which required companies to stand out from
other companies in order to attract more customers browsing on the internet. the quality of
product is no doubt the main factor to ensure heavy traffic on the website but along with this the
company must focus more on improving the user experience for the visitors by making it more
appealing (Wunderlich, and Beck, 2018). Amazon can use some principles of e-commerce to
drive to drive conversions on the company's site.

Customer centric thinking: The company must out the customers at the centre of their business
operations. Amazon must use the focus on customers as a secret recipe over their customers.
Developing a customer centric approach is a smart move for the online retailer such as Amazon
as the customer are the backbone of any business (Ismagilova, and et.al., 2017). The company
must incorporate more personal experience into the e-commerce site by allowing the unique
product recommendations. The company must offer customers to have the freedom of
purchasing what they wish for. This can be done by offering the services such as shop by store
and even buying the online purchased product from the physical stores. This can be achieved by
making the site more mobile responsive (Clohessy, Acton, and Morgan, 2018). The process of
customers purchasing a product includes many touchpoints such as mobile, desktop and many
more. By creating more omni channel experience will help the customers feel delighted and
providing more friction less experience of the shopping.
Empowering shoppers: The customers base are becoming more and more independent in the
new world. customer hate to be bothered by the salesperson in both online and physical stores.
Amazon must empower their customers to find solution of the problems mentioned while
browsing about their required product on their own (Verhoef, and Bijmolt, 2019). This process
of question and answering will help in understanding the needs and requirements of the
customers. Along with this the company must offer easy return policies which is very important
for the company's site. This is crucial as before buying the product, shopper go through the
return policies. It is important for the company to send a post purchased mail to the customers to
confirm the process and providing the estimate time for deliveries. The company can ask for
feedbacks which will help in improving the things going wrong in the organisation . All this
helps in attain best customer satisfaction (Ghezzi, and Cavallo, 2020).
Speed: Nobody has the patience to wait for the site to load, people will skip to another site rather
than waiting on the same. thus, it is important for the company to be more quick loading site.
Providing fastest deliveries and a quick response from the side of customer service attracts
maximum customers. These factors helps in creating a value for the brand and increasing its
reputation (Ross, Beath, and Mocker, 2019.). if the e-commerce site is buffering, potential
customers will look away and move on to the competitor company. Shipping process can be
improved with the help of having a solid plan for fulfilment.

RECOMMENDATIONS
Amazon is one of the leading e-commerce sites present in the market. However, the company
can use some recommendations to improve their products and services and attain more happy
customers. Filtering the products are better than the traditional methods but company must look
more into the combined interest of family rather than just an individual (Cusumano, 2017).
Therefore, the company must combine the family interest in some products. The company has a
wide range of customer base and it can use the delivery address into grouping people into
families. Usually people consult to their friends before buying a product, Amazon must offer a
service of providing share with the friends options which can help in easily tracking down the
opinions of the people which the customer cares about (Polacco, and Backes, 2018.). The
company must connect the profiles of friends and their interest from before making any
purchase. Another important thing is that the customers when scrolling through the company's
site are more interested in the product when they see their favourite colour. amazon can ad an
option where they showcase the product in the colour mostly preferred by that individual. This
helps in increasing the hit rate of the products (Weill, and Woerner, 2018). Also, there are many
complaints from the users of the Amazon that there is access to a lot of inauthentic products
which are fake in many ways from the original product ordered. It has destroyed the reputation
of Amazon from being safe place to shop to the site delivering fake products. The company can
resolve this issue by offering a clear description of the product and its origin to avoid any
confusion. The come must add a mic option to make it easy for the customers to use the option
rather than typing the whole thing. during maximum time, customers return their products
because of the issue in their size and fitting of the product. amazon must apparel size
measurements (Watanabe, Naveed, and Neittaanmäki, 2018). This idea can help people find that
they will be well fitted in the company's product. This will avoid the number of returns and
increase the profits.
CONCLUSION
It can be concluded that the digital business is the main source of business in the coming years.
Digitalisation has taken over the market world and the lives of the people. The characteristics of
digital business can overlap with the digital transformation concepts. It offers more customer
centric approach with the help of implementation of digital technologies in the business

operations of the company. Digital business can make a lot of changes in the company which can
result in fast processes. Digital business helps in identifying the priorities of the business with
regards to the needs and requirements of the customers. It is the best practice to follow in this
modern market place. Amazon is an e-commerce company which is leading the way in its
industry. It is concluded that the trends of the digital technologies have major impact in the
betterment of the business of Amazon and has many advantages for amazon. The new and
emerging digital models can help in providing cyber security and exhibiting ethical values in the
services offered by the company. The influence of collaboration and strategic alliance can help
the company attain the desired goals which were not possible otherwise. The use of e-commerce
principles can help amazon gain competitive advantage and come on the top.

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