LSC UoS BA Business: Amazon's Digital Business Strategy Evaluation

This report evaluates Amazon's digital business strategies, covering key trends, advantages, emerging business models, and the impact of collaborative relationships and digital currency. It discusses the use of artificial intelligence, robotic process automation, and chatbots for enhancing customer experience. The report also examines freemium, pyramid, ecosystem, and on-demand business models, and their implications for cybersecurity and ethical practices. Furthermore, it assesses the impact of collaborative relationships and strategic alliances, highlighting both advantages and disadvantages, such as improved efficiency versus potential conflicts. The analysis emphasizes Amazon's efforts in cybersecurity and data protection to maintain customer trust and competitive advantage. Desklib provides access to similar solved assignments and past papers for students.

Digital business

EXECUTIVE SUMMARY
In this report there will be brief discussion about the new digital trends which the
organisation focus to implement in the workplace. On the other hand, there are multiple
techniques which is been used by the organisation in order to gain competitive advantage with
the help of digital technology. There are multiple theories and models which is been used by the
organisation in order to overcome multiple cyber challenges. There are various transitions which
can impact the performance of the company in a significant manner.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
TASK 1............................................................................................................................................4
Overview key trends and advantages..........................................................................................4
TASK 2 ...........................................................................................................................................6
Evaluating new and emerging digital business model................................................................6
TASK 3 ...........................................................................................................................................8
Evaluating the impact of new collaborative relationships and strategic alliances......................8
TASK 4 ...........................................................................................................................................9
Discussing the impact of digital currency on digital businesses.................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital technology is the vital source which helps the firm to provide maximum customer
satisfaction (What is Digital Business?, 2022). There are multiple trends which is been evolving
in the market and the organisation needs to focus on becoming better to gain competitive
advantage in this new era. The report aims to analyse about understanding the impact of digital
technology which helps the company to carry out the operations in a strategic manner (Bereznoy,
2018). There are multiple organisation which is been using various platforms in order to promote
the products and services. Amazon is an American multinational company which offers various
services to the customers. It is one of the company which is growing their business at an
exponential rate. The organisation provides E commerce, cloud computing, digital streaming,
and artificial intelligence services. It is one of the most valuable brand which is been providing
excellent services to the customers. It was founded by Jeff bezzos on July 5 1994. In this report
there will be brief discussion about new emerging trends in the digital technology. There will
also be discussion about the key advantages of digital technology. Along with that, there will be
evaluation about the importance of digital currency which is been used by most of the
individuals in this new modern world.
MAIN BODY
TASK 1
Overview key trends and advantages
Digital business is the key to achieve success in this new and modern world. The
organisation can use the technology and achieve great results in the market. The organisation can
provide better services which the help of new digital software and tools (Bryukhovetskaya, and
et.al 2020). With the help of digital technology the customers can buy their essential products
and services from online stores. Most of the companies which are commencing their repartitions
in this new world is focusing on implementing the digital infrastructure in the workplace. There
are multiple benefits which could be achieved by them in a significant manner.
Advantages of Digital business
There are multiple advantages of the digital business it reduced the operational costs for
the business (Komljenovic, 2021). The organisation can also implement the quality and become
consistent in order to provide the essential goods and services to the customers. The agility can

also been improved in the business and this will help to carry out the best results in the market.
There are various other benefits of digital benefits which is been mentioned below:
 Brings stability and flexibility in workplace – This is the major source of attraction of
the digital business. The organisation can implement the digital infrastructure in order to
gain the desired results (Gurbaxani, and Dunkle, 2019). The management could focus on
becoming better for the market and create a new trend in the society.
 Enhances the quality of the services – The organisation can also gain competitive and
improve the quality of their products and services. There are various opportunities on
which the company can capitalise in the future in a strategic manner.
Key trends of Digital Technology
The digital technology can help the organisation to innovate new ideas and help the
company to become more profitable in the market. There are multiple trends in relation to digital
technology which is been described below:
 Artificial intelligence – This is one of the most emerging trend in the technology.
Artificial intelligence helps the firm to carry out the operations in an effective manner. It
is the important source to provide the best customer experience in the market they can
gain competitive advantage (Ghezzi, and Cavallo, 2020). The artificial intelligence
technology is been used by Amazon. The organisation has bring the AI system in order to
offer better services to the customers.
 Robotic process automation to carry out the operations – This is the automated source
to prepare the final products for the customers. The organisation is able to carry out the
automated operations with the help of this technology (Kane, 2019). Amazon is been
using this technology to offer quality services to the consumers. They can work with the
new changing trends in the market.
 Chatbots and personalisation – This is the trend which is been used in order to solve
the customer problem and gain the necessary feedback. There are various business which
is been optimising this feature in order to provide the products as per customer
preferences. Amazon is taking the help of chatbots in order to gain the necessary
feedbacks from the customers and improve the areas in which they are lacking.
Amazon has implemented the digital infrastructure in the workplace. They are also using
the new technological tools and methods in order to carry out their operations in a systematic

manner. There are various objectives which is been achieved by the firm in the market. With the
help of artificial intelligence system. Amazon is been focusing on becoming better in every
manner (Kazantsev, and Martens, 2021). The artificial intelligence system will help to enhance
the quality of the operations an help the company to provide better services and products to the
customers. The new trend in the digital business which is chatbots and personalisation is used by
the company to improve the critical areas by talking the valuable feedbacks of the customers.
This will help Amazon to improve their services for the upcoming future in the market and they
also evolving more as the customer oriented organisation.
TASK 2
Evaluating new and emerging digital business model
There are various changes which is been implemented in the organisation to enhance the
services and work with the changing conditions of the business. The models will help to
understand about the core aspects of the digital business. In order to become successful in the
market the company needs to implement these models which leads them towards higher products
and they can offer great value to the customers (Marcos-Pablos, García-Holgado, and García-
Peñalvo, 2019). The emerging trends of the digital business model is been described below:
 Freemium model – This is the model which is been used by the companies in order to
attract various customers by providing them free services. The customers can use the
services for free in the market. It helps the company to gain competitive enlacement with
the new evolving marketing conditions. This will help the organisation to create the
valuable customer base (Kotarba, 2018). In the future the company can take serious
advantages for them. As that time the customers needs to pay the amount of the services.
This is the model which codes not works with the ethical values and norms. This will also
create multiple variations in the business and also impact the organisation brand integrity
in the market.
 Pyramid model – This is the model which is been used by the organisation to improve
the market share and sales in the market. The pyramid model is been used by the
company and with the help of various stages they can identify the customer needs and
provide them better products and services. Amazon is been providing safety to the

consumers. They check the overall status of the business and Amazon is taking safety
measures in the market and protect the data of the consumers.
 Ecosystem model – This is the model which is been used by the company to provide the
products as per customer needs. The organisation can sell multiple diversified products in
the market. Through this they are able to attract the audience in a significant manner.
This is the model which is been used to overcome the challenges of the cyber security
(Mariia, and et.al 2020). There is a secure Pavement gateway which is been arise in the
organisation. It also helps the organisation to track their performance and identify the
areas in an effective manner. Amazon is been doing serious improvements in order to
enhance the overall sales in the market and attract the huge audience. This is the model
which is been used by the company to protect the individuals from the cybercriminals.
 On demand model – This model is been used by the organisation in order to provide the
products as per changing time (Albukhitan, 2020). There are various instant services
which is been provided to the customers. There are multiple individuals which is been
incorporated with Amazon. The customers have taken the prime membership they need
to pay the amounts on the timely basis. The customers can enjoy their content on the
digital platform of Amazon. This will also help the company to grow at an efficient rate
in the market.
With the changing scenario and the use of new technological tools Amazon has been
changing their models which they use in order to protect the customers data. They also have
overcome various cybersecurity challenges by implementing new ethics and values in the
workplace. Amazon is taking the steps in order to fight against the cybercriminals. The use of
pyramid model has been implemented by the organisation in order to take multiple safety
measures (Matzler, and et.al 2018). This is the model which is been used by the company to
protect the data viably among other companies which is been present in the market. It also
reduced the chances of crime in an effective manner.
On the other hand, Amazon is also been using the Ecosystem model to carry out the
operations effectively. They have certainly eliminates all the issues which is been affecting their
ethics. The organisation has implemented the flexible structure which is been the major source to
provide them best results in the market and help them to become more efficient in every manner.

TASK 3
Evaluating the impact of new collaborative relationships and strategic alliances
Collaborative relationship – This is the process which is been used by the organisation.
There are two or more individual which is been involved with each other and work in a
uniformed way in order to achieve the goals and objectives of the organisation. They can work
together with this approach in order to provide various benefits to the organisation. There are
multiple conflicts which can raise while working together due to different levels of decision
making (Porfírio, Jand et.al 2021). It certainly depends of the mindset of the individuals. They
want to work uniformly for the organisation.
Advantages
Online collaboration advantages is been described below:
 The main advantage of the collaborative relationship is that the individual can work
collaborated manner in order to achieve the goals and objectives for the organisation.
They can work in the flexible hours and work with the desired location.
 This method is cost efficient and it is been used in order to cut various expenses and
overheads (Ting, and Gray, 2019). This will help the organisation to work in an effective
manner for their targets.
 This will help the organisation to attract new amount of audience towards their products
and services. They are also able to get competitive enlacement over other competitors.
Disadvantages
 In the online collaboration the organisation can face the issue of the cyber challenges
which can affect the data of various individual.
 There are certain changes of arising the conflicts which can affect the organisation
performance and also the desired targets which is been set by the management.
 The employees needs to work in a coordinated manner which is the major challenge in
the online collaboration.
Strategic Alliance – The organisation can work in a coordinated manner with other companies.
They can work mutually in order to achieve the desired goals and objectives in the market. Th
joint venture needs to be stable and there are various regulations which needs to be fulfilled by
both of the companies.
Advantages

 The organisation can target new customers and attain the desired goals and objectives in
the market effectively (Prince, 2018). The company can also expand their business in
various regions.
 The organisation can improve their brand image in the market and use new ways of
promotion in order to improve the brand awareness.
 The tow companies which has partnered with each other can form the strategic alliance
and create new ideas to improve the overall sales in market.
Disadvantages
 The decisions and vision of both the companies needs to be matched otherwise there are
multiple conflicts which can arise and it can effect the business operations of both the
companies in a negative manner.
 The culture and ethical issues is different from every company. This is the serious
concern and impact the overall operations of the organisation.
 The cost and other methods needs to be clear there are multiple problems which can be
arise by the investors and the shareholders if the company is not performing well in the
market.
Amazon works in a coordinated manner the mutual trust which is been implemented by
the organisation will help them to gain the focus on getting the desired results in the market.
They are taking several benefits by selling the products to the customers in online. The website
of the company is experiencing huge traffic which is the major source it also helps them to
enhance the overall sales in the market in an effective manner (Venkatesh, Mathew, and
Singhal, 2019). The productivity of the organisation is also been implemented with the help of
various strategies and approaches which is germinally been developed by the management. They
are also using new way in order to attract the customers in the market.
TASK 4
Discussing the impact of digital currency on digital businesses
Digital currency is the form of online money which is been used by most of the
individuals to commence various activities and commence the operations in an effective manner.
Crypto currency in been circulating in various regions. It is one form of currency which is been
established in order to carry out multiple practices (Sama, Stefanidis, and Casselman, 2022).

There are Cryptographic algorithms which is been used in order to record the transactions in a
systematic manner. The token is been protected with the help of new technology in order to
prevent from various cyber activities. With the help of new methods the data is stored in block
chain which is the major source of to achieve viability. The individual can store their digital
currency in the digital wallets. There are multiple types of crypto currencies which is been
formed till the date and various individuals are using it in order to transform their practices. The
cryptocurrencies has a growing market and various individuals are using it in order to create
achieve more profits in the market. The cryptocurrency market is been named as Bitcoin it was
introduced in 2009. There are multiple examples which includes Litecoin, Ethereum, etc. There
are new currencies in which the individual is heavily investing. The transactions can also been
tracked with the help of systematic methods (Udovita, 2020). With the help of crypto currencies
the individual can do faster payment and the rate of transactions is also high which is the major
benefit of cryptocurrency. In this new digital business the organisation is changing their way of
providing services. The customers can now use the Bitcoin which is the digital currency. The
customers can use it in order to buy various products and services. Amazon is been also
focusing and evaluating the new changing trends of the market. They are implementing the new
technology through which the customers can use in order to buy the essential services of the
company.
Impact of recent crash of digital currency on digital businesses
There are various concerns over the digital currency which is cryptocurrency. There is a
major fall in the values of digital tokens which includes Ethereum, Bitcoin and Litcoin. In
Today's business there is sudden rise in the modern transactions. Most of the countries have not
make the cryptocurrencies a legal tender which is the major downfall for them. There is no
viability because of the changing terms and marketing conditions. Amazon users can use the
essential services with the help of digital currency. The crypto market has been collapsed due to
the problem of viability (Stonehouse, and Konina, 2020). This is the underlying technology
which is not been developed and the problem of safety is also arising among various individual
which is the major reason for the downfall of cryptocurrency. There are multiple reasons for the
crash of digital currency which is been described below:
 Volatility among risk assets – In the recent months the rise in the price of the
cryptocurrencies and the downfall of the stock market is been correlated with each other.

There is a sudden rise in the prices of the cryptocurrencies. This is the major boom for the
digital tokens. But after sometime due to the changing market conditions the stock market
is been stabilised and the individuals now investing their amount in the stick market.
 Cryptocurrencies is not a legal tender – This is the major reason for the downfall of the
cryptocurrencies most of the countries have not make it a legal tender. Cryptocurrency
have seen the immense growth (Tekic, and Koroteev, 2019). There are various other
particular reasons in the downfall of Cryptocurrency.
CONCLUSION
From the above report it has been concluded that the organisation needs to implement
new digital advancements in the workplace which helps the organisation in order to achieve great
results in the market. On the other hand, the major focus is to understand the recent crash on the
digital currency. There are various reason for the downfall of the digital currencies. The
organisation is also implementing the new trends which helps them to become successful in the
market. Along with that, there is evaluation about the digital technology which is the major
reason for the growth of the organisation. For further instance, in this report there are various
advantages which can be used by the company they can also provide better services to tec
customers.

REFERENCES
Books and Journals
Bereznoy, A., 2018. Multinational business in the era of global digital revolution. Mirovaia
ekonomika i mezhdunarodnye otnosheniia, 62(9), pp.5-17.
Bryukhovetskaya, and et.al 2020. Management of digital technology development in the national
economy. In IOP Conference Series: Earth and Environmental Science (Vol. 421, No.
4, p. 042018). IOP Publishing.
Gurbaxani, V. and Dunkle, D., 2019. Gearing up for successful digital transformation. MIS
Quarterly Executive, 18(3).
Kane, G., 2019. The technology fallacy: people are the real key to digital
transformation. Research-Technology Management, 62(6), pp.44-49.
Kazantsev, N. and Martens, I., 2021. Industry 4.0 Digital Platforms: Collaborative Business
Models for SMEs. In Digital Business Models in Industrial Ecosystems (pp. 125-134).
Springer, Cham.
Kotarba, M., 2018. Digital transformation of business models. Foundations of
management, 10(1), pp.123-142.
Mariia, and et.al 2020. Digital transformations of logistics customer service business
models. Intellectualization of Logistics and Supply Chain Management, (1), pp.57-75.
Matzler, and et.al 2018. The crusade of digital disruption. Journal of Business Strategy.
Porfírio, Jand et.al 2021. Leadership characteristics and digital transformation. Journal of
Business Research, 124, pp.610-619.
Prince, K.A., 2018. Digital leadership: transitioning into the digital age (Doctoral dissertation,
James Cook University).
Sama, L.M., Stefanidis, A. and Casselman, R.M., 2022. Rethinking corporate governance in the
digital economy: The role of stewardship. Business Horizons, 65(5), pp.535-546.
Stonehouse, G.H. and Konina, N.Y., 2020, February. Management challenges in the age of
digital disruption. In 1st International Conference on Emerging Trends and Challenges
in the Management Theory and Practice (ETCMTP 2019) (pp. 1-6). Atlantis Press.
Tekic, Z. and Koroteev, D., 2019. From disruptively digital to proudly analog: A holistic
typology of digital transformation strategies. Business Horizons, 62(6), pp.683-693.
Udovita, P.V.M.V.D., 2020. Conceptual review on dimensions of digital transformation in
modern era. International Journal of Scientific and Research Publications, 10(2),
pp.520-529.
Venkatesh, R., Mathew, L. and Singhal, T.K., 2019. Imperatives of business models and digital
transformation for digital services providers. International Journal of Business Data
Communications and Networking (IJBDCN), 15(1), pp.105-124.
Komljenovic, J., 2021. The rise of education rentiers: digital platforms, digital data and
rents. Learning, Media and Technology, 46(3), pp.320-332.
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research, 110, pp.519-537.
Marcos-Pablos, S., García-Holgado, A. and García-Peñalvo, F.J., 2019, October. Modelling the
business structure of a digital health ecosystem. In Proceedings of the Seventh
International Conference on Technological Ecosystems for Enhancing
Multiculturality (pp. 838-846).