Comprehensive Digital Business Analysis of B2W Company

This report provides a comprehensive analysis of B2W, a prominent digital business operating in the e-commerce sector. It begins with an introduction to digital business concepts, contrasting them with traditional models, and then focuses on B2W's operations. The main body of the report delves into B2W's digital business activities, including its mode of operation, the digital business environment, and market dynamics, such as market growth and segmentation. The report also examines the company's strengths, weaknesses, opportunities, and threats. Furthermore, it explores key growth factors and the impact of external forces on the company, utilizing a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing B2W's business. The report concludes with an overview of the company's strategies and market position within the Latin American e-commerce landscape.

DIGITAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Digital business versus traditional business ..........................................................................1
Digital business models..........................................................................................................2
MAIN BODY...................................................................................................................................3
Digital business activities.......................................................................................................3
Mode of Operation.................................................................................................................3
Digital Business Environment................................................................................................4
Market Place...........................................................................................................................4
Market growth........................................................................................................................5
Market Segmentation..............................................................................................................5
Key growth factors or digital business...................................................................................6
External forces impact on business operations.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A digital business is one that uses technology that have changed everything. It is the
creation of new business which is designing by blurring the digital and physical worlds. It
promises to use in an unprecedented convergence of people, business and things that disrupts
existing business models even those born of the internet and e-business eras. In digital business
use new technology for create new value in business models, customer experiences and internal
capabilities to support of their core operations (Baggio and Del Chiappa, 2014). In the report for
digital business selected company B2W, which is an online retail company in Latin America.
The merger between Americans.com and Submarino.com, reflect on Lojas Americanas to
controlling shareholders about to 60% of the new company while 40% is a free float. At the time
of merger company has started 50% of the online sales industry in Brazil and expand their plan
with the help of different distribution channels and the aim of the company to compete with
larger companies in traditional retail. There are no of employees about to 7000 in the company.
The company Located at Latin America and headquarter in Rio de Janeiro, Brazil. The website
of the company www.b2winc.com. In Brazil company operates their business through
Submarino.com, Americanas.com, Shoptime and Soubarato. It makes digital business because
the company leader in e-commerce and sales their products through different digital channels
and 40 categories in products and services, these all are provided through telesales, catalogues,
TV and kiosks. It also provide different offers to their customers like internet tickets sales
through Ingresso.com, an online travel agency, B2W also provides through Submarino finance
and digital finance.
Digital business versus traditional business
Traditional Business – It is a local store which provides their products and services to
their local customers as per requirements. It is a set up where customer will have to visit on the
site store as physically way to purchase their products according to choice. The framework of the
business design according to budget and their infrastructure cost is very high.
Digital Business – In this business use new technology and apply in effective manner for
create value in business models, customer experience and the internal capabilities. These values
are supported by their core operations.
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Similarities between traditional and digital business
In traditional as well as digital business provide facility to customer for select products
according to their choice. After selection they can return products if there is coming any issue
(Leischnig, Wölfl and Ivens, 2016) .
Differences between traditional and digital business
Traditional Business Digital Business
In the traditional business people can go for
purchase things that was consume much more
time.
It can save time and money in fast life so that's
why e-commerce businesses are all time
favourites of the people.
Digital business models
Strength – The strength of a B2W that being the leading online retailer which can drives
its strength from a three pronged strategic thrust on the basis of cost leadership and
differentiation. There are mentioned strengths of the company -
 Leveraging
 Cost leadership Brand Recognition in new segments
Weakness – In this section that problems which can stop to present optimal level and
need to improve regarding to competitive advantage. In the context of B2W can mention about
the weakness of company that has to reduced by them. These are -
 High liability
 Supply Chain Invested into customer oriented services
Opportunities – There are mentioned favourable external factors which can help to
organisation to control activities in competitive advantage. The company B2W can gain many
advantage in due to get opportunities.
 Investing into R&D to thwart industry disruption.
 Reduce costs with credit card management fess Encourage customer loyalty
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Threat – There are refers to factors that have the potential to harm an organization and
there is including threat related to product due to rising costs.
 Focus on growth areas
 Come out from business
 Low entry barriers of the industry(Nambisan, 2017).
MAIN BODY
Digital business activities
In Digital business activities including those activities which are based on the internet
and new technology. In the business conduct activities like payment option, purchase and sales,
return option. The particular activities can help to improve efficiency and get success for long
time sustainability. The activities are based on business transformation which is fast adaptability,
rapid innovation, remote workforce and big data analysis.
The particular digital technologies are employ by the company which can help to increase
growth and help to gain more profit. The technologies are inventory management software,
according to this manage all stocks according to order and manage all activities to fulfil
requirement according to received order. The technology used by company to increase processes
ans assist them to doing their daily role, ranging from random stow and pick through to box
sizing algorithms, software that determines the shortest, most efficient walking route from one
place to another place (Hansen and Sia, 2015). There are B2W can work with different unique
model in the market and provide most loved brands in Latin America. It can continuously offers
to their customers a broad and growing portfolio of quality products and services. It can work
with Americanas.com which is the biggest store with lowest price. Submarion where products
that enjoy by people and provide best services on the internet. Shoptime where provide all
exclusive and live demonstrations. SouBarato which is largest outlet in Latin America. It is
provided digital finance and submarino finance, Ingresso.com, B2W Viagens.
Mode of Operation
It refers to the way company carry out all the activities that related to running a business
in the market. B2W through it's effective operations and supply chain management has able to
manufacture wide variety of goods and services for the international customers base. The
company allows seller to follow logistics programme in order to serve and deliver goods to
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customers. B2W logistics comprises of UPS, FedEx, USPS. It also provides delivery options like
7 day or same day and effectively manage third parties. Special training is provided to employees
to guide them about deliveries. As B2W includes in e- commerce many large and small retailers
sell their products using it's website. It has created various sections like books, clothing, foot
wear etc in different categories, this has led to systematic management of goods. Customers are
able to identify and make orders based on their preferences. Measures are taken to further
improve the efficiency of organisation. Quality of products and services are maintained through
material management. The shipment and pick up services has provided benefits of increased
customer loyalty from the customers as trust amongst the people can only be created by
indulging in business activity in an ethical manner (Steinberg, Horwitz and Zohar, 2015).
Digital Business Environment
Micro – It is the operating environment of the firm because of the functioning of the
micro environment shows their effect in direct way to bearing on the company. In the context of
B2W they are more inter linked with the company than macro environmental factors. In the
micro environments includes suppliers, employees, customers, shareholders and media.
Macro – It is the condition which is exists in the economy as whole part rather than in a
particular sector or region. In the context of B2W there are including gross domestic product
(GDP), inflation, monetary and fiscal policy, employment and spending money. It is main;y
related to business cycle policy to perform of an individual business sector.
Market Place
In this section include porters five forces where include different points which are -
Threat of new entrants – It is significant to entrance of new into online retail business. If
there are any strong threat of new entrants in the retail industry that time current players who
already exist in market are playing safe and earn lower profit to reduce the threats from new
players
Bargaining power of buyers – In general bargaining power of buyers is great. At the
same time there are required to clarify to B2W regarding to extent of buyer bargaining power in
varies to across their customers according to their categories. In the context of company if buyer
have strong bargaining power then they usually tend to drive price down thus limiting the
potential of the B2W digital ADR to earn sustainable profits (Simmons, Palmer and Truong,
2013) .
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Bargaining power of suppliers – The power of bargaining of supplier is high then they
will infusion higher price from the B2W digital ADR to deal in broad range to their suppliers for
diversify the business and their exercise a vast bargaining power in the context of majority of
their supplier. It will influence of the potential of B2W digital ADR to maintain above average
profits in industry.
Threat substitute products or services – The threat of the substitute products in the
context of B2W very high. While a number of other brands have also entered into retail, people
can also buy the physical retailers. If the threat of substitutes is high then B2W digital ADR has
to either continuously invest into R&D or it risks losing out to disruptors in the industry.
Market growth
In competition matrix of B2W include critical success factors like as marketing
positioning, price competitiveness, Consumer loyalty, service quality etc. it is provided
according to rating from 1 to 4 -
Critical Success factors Rating (1 to4)
Marketing Positioning 4
Price Competitiveness 4
Financial position 2
Consumer Loyalty 4
Brand Awareness 4
Service Quality 4
Global expansion 4
Customer service and support 4
Market Segmentation
It is the process of dividing dividing a market of potential customers into groups or
segments which are based on activities of business. The particular segment develop according to
consumers who can responds similarly to marketing strategies and share with similar interest,
needs or locations (Tiago and Veríssimo, 2014) . In the context of B2W there are targeting all
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types of people regarding to business products and services because the company has provided
all types products and services to their customer. The B2W sales online as a retail business in
order to maintain record in online business. Time to time they are applying digital technology in
their business to attract customers.
Key growth factors or digital business
There are mentioned unique selling proposition in the term it is used to bring up an aspect
of a service or good that differentiates it from similar services or goods. For USP there are
identified example selling online books at broad level. These are integrated with marketing
strategies with a number of targeted online marketing channels which is related to advertising,
television advertising and other initiatives.
External forces impact on business operations
PESTLE analysis - The analysis based on the external factors where provide shape to
business according to conditions of a company's remote or macro environment. In the case of
B2W the situation of online retail market are considered. According to company in the market
enjoys their benefits for achieve high revenues and set their online services. In present time
online retail marketing is dynamic and creating new challenges. There are mentioned PESTLE
analysis of B2W company -
Political – Trade economic policy in the USA from the trump administration currently
threatens the creation of foreign firms in the country. While B2W an American firm which is
considered as amount of its goods come from overseas. In the reference of Brexit negotiations,
the British and American government are currently retention about the potential trade deals done
between two countries (Matzler and et.al, 2013) . It will show the operations of B2W In the
reference of UK as an American firm. It can help to reduce import taxes and resulting in less
regulations.
Economical – The economic crisis are started from the beginning of the 1980-90s to the
world population consumes less and is back to an almost systematic search for the best deal. In
economic factors includes such as unemployment levels, volume of revenues, taxation and
inflation rates, industry specific economic growth and current exchange rate can directly affect to
volume of revenues and prospects of growth in B2W. After the merger of two companies B2W
affect because of 50% share invest in in new company to start online sales industry.
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Social – Increasing the levels of obesity which can affect to individual by across globe,
with 711 million people across the globe being classed as overweight and increasing pressure or
governments to motivate physical activity and a healthy life style. It could be argued that by
enlargement their delivery services to extent to those customers who have their groceries and
delivered to doorstep. B2W can motivate to non active lifestyle as a result of obesity pandemic
(Sussan and Acs, 2017) .
Technological – In the terms of logistics, there are increasing levels of technology to
fulfil necessary requirement in effective and efficient way. It can deal with the demands on the
basis of highly globalised, complicated and interconnected supply chains. In B2W continues to
create high levels of technology to aid their logistics services. In the year of 2017 seeing new
services which is known as Hub rolled out and a locker system can allow to B2W to deliverables
and dropped off on customer is not home.
Legal – In present time the legal pressure increase which is take placed in multinational
corporations. There are assessing risks of their clients and sensitive political clients on terrorist
watch lists should be sanctioned. After the merger, B2W has to followed rules and regulations in
order to government rules and regulations.
Environmental – With increasing pressure from governments being placed on large
organisation for deduct organisational errors. The question can be asked as to how B2W can
relate to their rules and regulation in order to described about the large part of their business and
relies on logistics and delivering products.
CONCLUSION
According to my point of view today digital business become large part of online
business. Broadcast to digital a large retail online company which can provide all things through
internet and provide many services like payment option, return option, select product and home
delivery and digital finance which is part of digital business. In present time digital business can
face many problem which is create problem to tackle different situation like employee push
back, lack of overall digitization strategy, limited budget, organizational structure. The company
has face problems regarding to different customer perspectives which is needs to fulfil like
different products of different brands. The digital business can apply different technology to
sustain in online market and increase profit to attract new customers who will shopping with
B2W. It will provide exchange offer like old mobile change for new phone. The company has
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also provided EMI offer and on festive season give chance to win gift voucher as well as
discount offer in order to increase sale of their products and services. If payment done through
selected bank and cards so gain advantage of more discount and attract to customer for purchase
products through B2W.
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REFERENCES
Books and Journals
Baggio, R. and Del Chiappa, G., 2014. Real and virtual relationships in tourism digital
ecosystems. Information Technology & Tourism. 14(1). pp.3-19.
Leischnig, A., Wölfl, S. and Ivens, B., 2016. When does digital business strategy matter to
market performance?.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice. 41(6). pp.1029-1055.
Hansen, R. and Sia, S. K., 2015. Hummel's Digital Transformation Toward Omnichannel
Retailing: Key Lessons Learned. MIS Quarterly Executive. 14(2).
Steinberg, D., Horwitz, G. and Zohar, D., 2015. Building a business model in digital
medicine. Nature biotechnology. 33(9). p.910.
Simmons, G., Palmer, M. and Truong, Y., 2013. Inscribing value on business model innovations:
Insights from industrial projects commercializing disruptive digital
innovations. Industrial Marketing Management. 42(5). pp.744-754.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business horizons. 57(6). pp.703-708.
Matzler, K. and et.al 2013. Business model innovation: coffee triumphs for Nespresso. Journal
of Business Strategy. 34(2). pp.30-37.
Sussan, F. and Acs, Z .J., 2017. The digital entrepreneurial ecosystem. Small Business
Economics. 49(1). pp.55-73.
Verčič, A. T. and Verčič, D., 2013. Digital natives and social media. Public Relations Review.
39(5). pp.600-602.
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