Digital Business: Trends, Ethics, Alliances and Crypto - Amazon UK

This report provides an in-depth analysis of digital business trends, focusing on Amazon UK's adoption of digital technologies and the implications for managing a virtual business in the global environment. It evaluates emerging digital business models in the context of cybersecurity and ethical considerations, examining the impact of new collaborative relationships and strategic alliances facilitated by digital technology. Furthermore, the report analyzes the influence of cryptocurrencies like Bitcoin on businesses, referencing El Salvador's adoption of Bitcoin as legal tender. The conclusion summarizes the key findings and their significance for digital business strategy and management.

Individual Report

ABSTRACT
Digital businesses are the important part of economy as the customers are highly preferring
online shopping as compare to the traditional and offline shopping. Amazon is a digital business
which is providing products and services through internet. There are various trends of digital
technology which have been adopted by the Amazon UK. Digital technologies are beneficial for
the business organisations as it make the work easy and effective. While performing business
operations, digital businesses have to face various various ethical and cyber security issues.
Strategic alliances through digital technology help the business in finding their competitors in the
other country and work mutually. Cryptocurrencies are used as the mode of doing transactions
through the use of internet.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Analysing an overview of key trends and advantages of digital technology as well as
implications for managing virtual business in the global business environment...................1
Evaluating new and emerging digital business models in the context of key business issues
such as cyber security and ethics............................................................................................3
Evaluating the impact of new collaborative relationships and strategic alliances through
digital technology ..................................................................................................................4
Analysing the impact of crypto currency such as Bitcoin and others on businesses. What do
you think of El Salvador’s legal tender of adoption bitcoin in early September 2021?.........6
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
Digital Business is defined as the procedures or collection of activities in which digital
technology is being applied in the business operations in order to create their business model
along with providing the goods and services to the customers. The chosen organisation for this
report is Amazon UK which is found as the 4th highest ranking site of United Kingdom and
acquire 42nd position in all over the world (Amazon largest retailer of UK, 2022). This
organisation has started providing products and services online in October 1998 (Aithal and
Aithal 2019). this report include the key trends and advantages of digital technology along with
the implications on managing virtual business in global business environment. In addition to this,
it also include the new and emerging digital business model for cyber security and ethics along
with their impact on new collaborative relationships and strategic alliances by digital technology.
At the end, it shall also cover the impact of crypto currency on businesses.
TASK
Analysing an overview of key trends and advantages of digital technology as well as
implications for managing virtual business in the global business environment
Digital Business refers to the use of digital technologies and resources to drive day-to-
day business operations, develop revenue and performance and deliver personalised, meaningful
experiences to customers. In digital business, digital technologies are employed in all areas of the
business, to optimise internal and external processes and business activities.
Key trends of digital technology
In this modern era, faster development of technology result in the fast progress and
growth. It is necessary for the business organisations to update their least trends of technology on
time in order to bringing smoothness and effectiveness in their business operations. Below
mentioned are the several latest key trends of digital technology which plays an important role in
Amazon UK for managing their virtual business in the global business environment: Artificial Intelligence (AI) and machine learning: It is consider as the technology
which is highly used in the world but it is necessary to update itself for the purpose of
becoming the latest trends for all user. In order to recognize the underlying insights and
connections, AI and machine learning is being used to identify the interactions. It is
useful for Amazon UK to determine the demands of their products and services and help
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the management in taking the effective decisions related to the utilization of available
resources in a better manner (Bereznoy, A., 2018). Amazon UK is also using it, for
generating higher revenue as the management can analyse the behaviour of customers on
the basis of their data. Robotic Process Automation (RPA): It is defined as a software which is being used for
automating the various processes of business such as interpreting applications, dealing
with data, replying of mails, processing transactions and many more. Amazon UK is
using this technology for doing their task automatically, so that the management can
perform their business operations in an effective and efficient manner in all over the
world. It also result in saving the cost along with time while performing several business
operations. Quantum Computing: It is also found as an important trend in digital technology which
also involve the capabilities of monitoring, analysing, querying and acting on data
(Dornberger and ed. al., 2018). This technology plays an important role in preventing the
spread of coronavirus as it help them in monitoring the task remotely. Management of
Amazon UK use this technology trend in identifying the applications related to finance
and banking, detecting frauds, managing the risk of credit and many more.
 Block Chain: In order to providing security to the users for preventing the negative
effect of cryptocurrencies, this emerging trend of digital technology plays an important
role. The management of Amazon UK is using this trend of digital technology for the
purpose of protecting their important data from any fraud which help them in managing
their business operations in an effective and efficient manner which leads to the success
of organisation.
Advantages of digital technology
Several of business organisations use latest technology for the purpose of earning higher
growth and benefits in the market. Below mentioned are the benefits of current and latest digital
technology which help the management of Amazon UK to manage their business operations in
the global market: Increase efficiency and productivity: In order to speeding up the streaming operations
and various business processes, digital technology has a vital role. As a result,
improvement in productivity and profitability of organisation can be analysed which
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leads to achieving the organisational goals and objectives (Gobble, M.M., 2018). For the
purpose of collecting and analysing the data and informations in a faster manner, Amazon
UK is using data analytics and intelligence software to perform this function in a faster
manner. Better Resource management: Modern IT techniques replace the labour services by the
use of digital technology as it perform the function of flow of data in all departments in
an effective manner. It help the management of Amazon UK in optimising the current
and latest technology for the purpose of making their resources better which leads to the
growth of business organisation in the global market. More resiliency: The use of digital technology develop the capabilities of adopting the
quick changes and bringing efficiency in the operations. A resilient environment can be
developed in Amazon UK along with the effective growth through adopting changes
which occurs in the global environment.
 Improved customer engagement: Engagement of customers in the organisation is the
most important aspect in the growth of organisation. Through the use of advance digital
technology, management of Amazon UK collect, analyse and store their important data.
Several of advance technology help the management in knowing about the preferences of
customers, so that they can align the products and services as per their requirements
(Gupta and Bose 2019). It is really important for the efficient and effective growth of
business organisation in international market.
Evaluating new and emerging digital business models in the context of key business issues such
as cyber security and ethics
A business organisation can connect their business with internet for the purpose of
completing the business operations in a faster and appropriate manner. On the other hand, the
risk of security is higher which effect the business organisation in various ways. There are some
cyber attacks which may cause loose of important information to the organisation such as
phishing, unsecured devices and Ransomware. Along with this, ethical issues also directly
impact on the standard of organisation which cause several of problems in maintaining the good
position of organisation in the market. Ethical issues in digital business are refers to the misuse
of important and personal data & information of company which include online privacy, cyber
squatting, web tracking, web spoofing, privacy invasion and many more (Gupta, S., 2018). It is
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found as essential for the Amazon UK to identify the issues related to the cyber security and
ethics while performing business operations for maintaining efficiency.
In today's world, bringing advancement and digitalisation is the most important task of a
business organisation. Application of digital business model in organisation help them in
maintaining the cyber security and ethics, so that the management can prevent the business
issues. Below mentioned are the several digital business model which can be developed by the
management of Amazon UK: Free Model (Ad-supported Model): It is defined as a free business model which is being
used by two well known organisations in the world. Providing free services to the
customers for enhancing their purchases is the major objective of using this business
model. In order to adopt this business model, the Amazon UK is required to provide
several free services to their customers, so that customers make purchase from them. Freemium Model: It refers to the most commonly used business model which makes
users to get free access to basic version of the product and later on, if the customer want
continuous use of service, they are required to take premium for the same (Kane, G.,
2019). In the case of Amazon UK, the management have to provide basic services of
their products free in order to attracting the customers.
 On-demand model: It refers to the business model which is being used by the Amazon
UK which provide right to their users to use their services for a particular duration of
time. It plays an important role in earning higher amount of profit along with preventing
the cyber attacks.
Evaluating the impact of new collaborative relationships and strategic alliances through digital
technology
Strategic alliances and new collaborative relationships are defined as the contract among
two or more than two companies to operate their business for the purpose of achieving the
common or mutual goals. This method make the decision of sharing resources for the purpose of
achieving their common goals. Majorly, the companies which are planning the international
expansion use this method as it help them in earning higher profit (Osmundsen, Iden and
Bygstad 2018). Digital technology make it possible to do partnership with the local businesses
performing business operations in the another country. Below mentioned are the several
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advantages of using digital technology in strategic alliances with another country for the purpose
of gaining success and adopting in global business environment: Easy to access local distributor and company of another country: While expanding
business operations in another country, Amazon UK have to work for the purpose of
knowing about the local company along with their distributor before making the
contract with them. It is very important step for the management of Amazon UK for
performing the function of effective trading of goods and service. Amazon UK is using
online channel for offering goods and services to their customers. Through the use of
technology, Amazon UK can know about the local companies of a particular country in
order to growing their operations. Opportunity to reach new market: Strategic Alliances is found as an effective method
through which the business organisations move expand their business operations in the
another country with the involvement of less amount of cost and risk. Transformation of
digital technology helps the business organisation in moving to the new market. It helps
the Amazon UK to make the effective entry in new market effectively with the use of
digital technology. It also helps the business organisation in attracting the more
customers towards the organisation. Brand awareness: In order to create the brand awareness in all over the world,
companies perform functions by combining strategic alliances and digital technology. It
provide the huge opportunity to the business organisation to grow their market size by
doing business in partnership with the company in another country. It also help the
management in fulfilling the needs and requirements of potential customers in an
attractive manner (Sahut, Iandoli and Teulon 2021). Amazon UK is found as a most
popular brand of e-commerce performing their business operations in all over the world.
It help them in 3expanding their business and become the top most brand in the
international market. Access to new customer base: Strategic alliances help the business organisation in
entering in the new market which help them in creating new base of customers. At this
level, the business organisation use digital technology for finding new and more creative
methods of reaching to the potential customers. By the use of Strategic Alliances,
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Amazon UK can access new customer base which help them in earning higher profits
through providing several good and services by the use of internet. Increased competitive advantages: A business organisation can get the opportunity of
entering in a new and global market which also leads to gaining the advantage in
worldwide business environment (Tekic and Koroteev 2019). Digital business is found
as the latest trend in the today's world of technology. Through the use of such advance
technology, customers can make purchase of goods and services from any corner of the
world for the purpose of fulfilling the needs and desires.
 Enhanced customer experiences: The management of a business organisation can
know about the needs and demand of customers, so that they can provide the products
and services in order to satisfy the customers which result in the enhancement of
customer experiences (Santos, Murmura and Bravi 2018). Amazon UK performing well
in enhancing their customer experience by providing goods and services as per the
preferences of customers. Along with this, it also result in the increase in employee
engagement.
Analysing the impact of crypto currency such as Bitcoin and others on businesses. What do you
think of El Salvador’s legal tender of adoption bitcoin in early September 2021?
Cryptocurrency is defined as a type of digital currency which do not exist physically but
it is only present in the electric form. There are various methods are found which are being used
to make the payment online such as Apple Pay, PayPal, Amazon Pay and many more.
Cryptocurrency can be consider as the same method which is being used by the people to make
online transactions in a profitable and faster manner. It do not require any verification from the
side of bank or any other financial institution. Below mentioned are the advantages and
disadvantages of using cryptocurrencies in the context of Amazon UK:
Advantages of Cryptocurrencies
It is found as the latest and trending method of payment system which help the business
organisation in making faster and effective payment. Below mentioned are the several benefits
which are gained by the Amazon UK while using it in their business: Secure and fast: Payment transaction method encryption is being used in the
cryptocurrencies for the purpose of verifying the transactions in an effective manner. It
plays an important role in keeping the safety and security of users with the use of advance
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coding (Schallmo and Williams 2018). The management of Amazon UK is getting help
in getting the payment in more secured and faster manner. Growth of company: It help the organisation in providing their services in faster and
secured way which leads to the enhancement of growth of business organisation. In
today's world, more and more customers are using digital technology for the purpose of
doing payments. It also help the Amazon UK to improve their growth by performing all
activities in a faster and easiest manner.
 Creates an avenue for gaining high profits: It has been found that the business
organisation which is providing more payment methods to the customers are gaining
higher profits (Vardarlier and Zafer 2020). Amazon UK can also increase the customers
engagement by using cryptocurrencies which also result in the increase in the profitability
of organisation.
Limitations of Cryptocurrencies
The use of Cryptocurrencies provide several of benefits to the business organisation. But
the use of cryptocurrencies can also leads to the creation of several issues for business
organisation as well. Below mentioned are the several limitations that affects the financial
transaction in the context of Amazon UK: It is highly volatile: Cryptocurrencies are found as volatile in nature which can bring
changes in values at any point of time. In the case of drop of value of cryptocurrencies,
the company have to face huge amount of losses. Uncertainties may arise in the work
place of Amazon UK while performing their financial operations by cryptocurrencies
and it may result in high loss in future. It is not widely accepted: In some part of world, people use traditional method for
doing payment. Hence, Amazon UK can not totally depend on the cryptocurrencies for
providing services to their customers (Sousa and Rocha 2019). It result in the loose in
the customers which result in the decrease in the growth of business organisation.
 Complex set-up process: Cryptocurrencies require more time and efforts for financial
transactions as compare to the other methods of financial transactions. As a result, the
Amazon UK have to face several difficulties while using this method in the
organisation.
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EI Salvador was found as the vary first nation in all over the world, who accepted
officially Bitcoin as a legal tender and it was happened on 7th September, 2021. This action of
nation permits their citizens for using the cryptocurrencies in their day to day transactions. After
this permission, more than 200 machines of cash were installed across the country (Steininger,
D.M., 2019). This makes greatest objection in Latin American country which create fear of
bringing inflation and instability in the country. After this, in November 2021, bitcoin decreases
its half of its value. This makes encouragement in all over the world for the purpose of using
cryptocurrencies to gain maximum of profit.
CONCLUSION
It has been concluded from the above report that the digital business is found as the
effective platform for a business organisation for performing their operations in all over the
world. It help the business organisation in enhancing the profitability and productivity. Several
of trends of digital technology are being used by the business organisation which help them in
performing their operations in an effective and efficient manner. Digital technology also help the
organisation in improving the customer engagement and effective resource management.
Through strategic alliances, business organisation enhance their operations in the new market
and digital technology bring effectiveness in the operations of organisation. Cryptocurrencies are
consider as an effective manner which helps the business organisations in performing financial
transactions in a more effective and fast manner.
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References:
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Online
Amazon largest retailer of UK, 2022 [online] Available through
<https://www.ascentialedge.com/press/amazon-become-uks-largest-retailer-gmv-sales-
2025>
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