Digital Business: Asda Case Study Executive Summary Report

This report provides an executive summary and analysis of Asda's digital business strategies. It begins by outlining key trends and advantages of digital technology, emphasizing its impact on virtual business in a global environment. The report then evaluates various new and emerging digital business models relevant to Asda, with a focus on e-commerce and critical business issues such as cyber security. Furthermore, it assesses the impact of collaborative relationships and strategic alliances facilitated by digital technology. The analysis includes a discussion of how e-commerce principles can be applied within Asda. The report covers the benefits of digital transformation, the importance of understanding customer needs, and the adoption of digital business models. The report also highlights the significance of cyber security and the impact of collaborative relationships and strategic alliances. Finally, the report suggests recommendations for Asda to improve its digital business practices and adapt to the evolving digital landscape, with a conclusion summarizing the key findings and recommendations.

DIGITAL BUSINESS

EXECUTIVE SUMMARY
Digital business becomes the future of organisation and those company which currently
using digital business platforms they definitely earn higher than other companies. The reason of
the success is not just only to transform the business practices digitally but also keep viewing on
all key trends of digital technology. Companies should also focus on new and emerging business
model which is very helpful for reducing the issues of Cyber attacks. Companies need to focus
on these issues with the help of using best business model. This report has identified the
significance of collaborative working and strategic Alliance which have slight difference among
them. It has shown that coma the Asda must undertake all the advantages and disadvantages
before working in to collaboration and indulge with strategic partner. At last, the report outlines
all the principles of e commerce which is necessary for growth and expansion. The Asda could
apply all the principles of e-commerce by hiring expert individuals and it developers so that data
and information will get protected. Also, the product description is the most vital factor which
attracts buyer’s decision to purchase.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
Overview of key trends and advantages of digital technology....................................................4
TASK 2............................................................................................................................................6
New and emerging digital business models.................................................................................6
TASK 3............................................................................................................................................8
Impact of new collaborative relationships and strategic alliances through digital technology...8
TASK 4............................................................................................................................................9
Discuss how e-commerce principles could be used in ASDA....................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books & Journals:......................................................................................................................12

INTRODUCTION
Digital transformation is becomes the new era of business environment in which every
organisation is now transform their business practices with digital technologies. The need for
transformation is arising due to emerging key trends of business environment that gives a great
impact on growth and development of company (Karagiannaki, Vergados and Fouskas, 2017).
Companies find out that they have to follow new business trends because it gives many benefits
to the organisations such as taking a competitive edge in the market. Companies adopted digital
technologies in the form of transforming their business practices for E-Commerce platform. E-
Commerce becomes one of the best ways to increase the sales and revenues of company. In this
context, Asda is undertaken to show emerging trends and digital business models. Asda is the
British company that has a supermarket chain and now they have an e-commerce business
platform (Benbya and et. al., 2020). Asda is one of the companies that focusing on sustainable
development and growth and that's why they adopted use models and technologies which are
beneficial not only for organisation but also for people. Company identified that digital
transformation is the future of business environment and that’s why they made a website for E-
Commerce platform i.e. https://www.asda.com/. This report also covers the impactof
collaborative relationships and e-commerce principles on organisation.
MAIN BODY
TASK 1
Overview of key trends and advantages of digital technology
Digital business is defined as creation of new business by adopting digital technologies in
which customer can purchase goods and services with the use of internet on organisation website
(Pucihar and et. al., 2019). It becomes the future of business environment and that's why every
organisation is now focusing on transforming their business practices by the application of
digital technologies. Digital business gives many benefits to the organisation that are mentioned
below:

 Organisations are able to understand their customer’s needs and wants with the help of
data driven customer insights (Sánchez, 2017). This can be done only with the help of
using digital transformation in the organisation.
 Company can make more profits with the help of digital transformation of the business
activities because now people easily are able to purchase their production services with
the use of internet which results in increase in sales.
 It also improves productivity and performances of employees as now they are more
focusing on other activities.
 With the use of digital technology, organisations are enhancing data collection as now the
use online information directly from the customers.
With the discussion of benefits from digital technology or digital business, it is now
clarified that every organisation needs to focus on digital transformation of their business
practices as they want to survive and grow in the market (Viriyasitavat and et. al., 2019). In
addition to this, company should also focuses on key trends in digital business environment
which are mentioned below:
 Consumers are already know the digital business and that’s why it becomes very
necessary after pressure of pandemic situation that companies need to focus on
developing software for messengers so that consumers are able to communicate with
company. It really become necessity for customers and that's why IT developers is now
focusing on developing software or messenger apps which are able to communicate with
customers directly in order to resolve their problems. It just not stops the propagation of
virus but also increase the reputation of brand.
 Innovation is the key of success and that's why automation becomes an important trend in
which organisation developing those channels which are automated for solving the
problems of customers (Gupta, 2018). Company can generate cash or profits as well as
loyalty interest of customers. For example, customer is doing just one click on the
website of Asda where they want to register their complaint. With the help of automatic
readdressal program Asda can easily increase the loyalty of customers by resolving the
problem with ease.

 All key trends are not just focusing on customers but also there is a key trend for the
welfare of employees. After pandemic situation in the entire world, organisation needs to
close their stores and offices which results in work from home to all employees. It
becomes a trend which continuous till everything that normal.
Asda is one of the organisations that have their own competitive position in the market. It
is a supermarket chain similarly as Sainsbury which provides consumer goods to their potential
buyers. Asda identified the future of business environment is digital transformation and that's
why they make their own website in order to adopt digital technology (Bouwman, Nikou and de
Reuver, 2019). They are transforming their business practices by physical stores into online
stores. They have their own website which is able to sell goods and services by online with the
use of internet. Asda has their own complaint section on their website where customers can
easily register their complaint which can be automatically solved by Asda artificial intelligence
expert. So it can be clearly seen that Asda already doing digital business practices.
TASK 2
New and emerging digital business models
Organisation has many options of new and emerging digital business model in order to
accomplish their goals and objectives. Companies analyse that digital business model should be
adopted after analysing their pros and cons with other models (Sharipov, Krotenko and
Dyakonova, 2020). The decision of digital business model is very important for every
organisation and that's why Asda adopted digital business model. Some important new and
emerging digital business models are mentioned below:
On demand model
In on demand business model, organisation cannot provide physical products as they
provide virtual products or services to the consumers. For example, online video stores that can
be get by Amazon, Apple TV plus, etc.
E commerce model

E commerce business model are widely used by organisation especially online retailers
such as Asda. This type of business model offers physical products and virtual products or
services (Perkin and Abraham, 2021). It is very important for every organisation as they have to
enjoy many benefits such as profits and revenues.
Ecosystem model
Ecosystem Model is defined as a digital ecosystem in which most powerful digital
business perform their business activities such as Amazon, Google, Tesla, Apple, etc. It also
leverages the customers with many other different services on different platforms.
Free-Model (Ad-supported Model)
It is the model that suggested by their name acid used by two important famous
companies that are Facebook and Google (Singh, Klarner and Hess, 2020). These are the best
example in order to decide that how they can use at supported and free business model. This
business model offers services for free services to the users after that they sold the product.
Google and Facebook using the valuable information of people and then display the ads
according to their likes and dislikes in order to achieve the target.
Freemium Model
This model is the most common digital business model in which users get free access for
limited period or boundaries. That means if user want to access more features of the business
then they have to pay for that. This model is widely used by every organisation such as a Spotify.
Spotify is one of the best example for this model else they provide more features with higher
quality to the user with additional subscription premiums (Batran and et. al., 2017). It is very
beneficial for the company as they can achieve their goals and objectives. It is the way to
generate income and profits by organisations.
Asda is it third largest grocery retailer of UK which is transformed by digitally with the
help of HCL which is a leading global Technology company. As the applied a new DevOps
delivery modelin orders to drive analytics and data (Siebel, 2019). It is very helpful to support
back office applications in which they provide full life cycle support, testing and development.
Asda used E-Commerce business model but this specially focusing on cyber security. This is the

reason that why they are using cybersecurity digital business model in which they can not allow
any other person to access the information of their potential buyers and customers. Day by day
the cyber threats are increasing and that’s why Asda used model in order to save the data of
customers.
TASK 3
Impact of new collaborative relationships and strategic alliances through digital technology
Collaborative relationship: it is the concept of working together for mutually agreed
benefits and share. Two parties take decision to combine their efforts, resources and technology
in such a manner that accomplish the same goals (Basias, and Pollalis, 2018). For example,
companies provide sponsorships and collaboration to other influencers through social media in
which both aims to increase sales by promoting products in an attractive manner.
Advantages:
 Through collaborative working, employees get to learn and acknowledge new things
which make their work easy and less complex.
 It is a best way to promote the product and services though digital platforms as it does not
require heavy excess to company profile.
 It builds team work and an en environment of coordination within the organisation.
Disadvantages:
 Sometimes, decision of both the parties is not suitable for each other which lead to chaos
and disputes (Casella, and Formenti, 2019).
 The resources and factors of production may damages and shift to personal aims.
 Chances of fraud activities and declines in brand reputation with ineffective working of
other business employees.
Strategic alliance: it is the concept of undertaking mutually agreed project and both the parties
separately work in order to get success into their partnership project. Both business parties are
free from any boundation and run individual business practices.
Advantages:

 The business could take advantage of new skills and talent which will enhance their
chances of success.
 The organization has economic advantages as strategic alliance lowers downs the risk by
support of partners and collaborators.
 It reduces competition and work for international success to distribute products and
services into different market.
Disadvantages:
 Lack of trust is the major cons of strategic alliance. Any business party could use
business resources for fraud purpose which will impact on one’s image (Cenamor,
Parida, and Wincent, 2019).
 Language barriers are the most affected factor while working into strategic alliance.
Communication between two parties must be effective.
Application on Asda:
By undertake the benefits of collaborative working and strategic Alliance through digital
technology. As in the era of social media and number of digital platforms, there are many
individuals who are keen to take participating in collaborative working through which they share
their resources and influence others in order to increase product sales. So that, Asda could
collaborate with Top class influencers who have maximum followers and global reach by giving
them concept of their product so that both the parties will contribute their efforts to attain
maximum number of sale for their own benefits (Khotamov, and Avazov, 2020). In respect of
strategic Alliance, as ASDA launch new campaigns and events with the help of strategic partner
in order to complete a specific project about their product sustainable business and any other
criteria. It does not effect on business entity as both the parties with really work separately. To
digital technology, strategic Alliance is also become easy to work by sitting in the host country
and make the brand name into international market.
TASK 4
Discuss how e-commerce principles could be used in ASDA

E- commerce: It is a way of distributing and rendering product and services into the potential
market. E-Commerce provides a wide reach to the customer by enabling business through
internet sources and trade globally to make sales and turnover. At undertake the use of social
media platforms in full utilization manner. It has been the most trending part of everyone life to
shop through online websites and e commercial pages to get an accessible deliveries and
convincible facilities.
Principles of E-commerce:
There are many principles of e-commerce which shows how a business could be successful by
using e commercial sites so that the most effective ones are described below:
User-friendly: the websites or application in which a business sells their products and services
must be less Complex and easy to use (Kirchner, and Razmerita, 2019). It should contain all the
necessary information which a customer wants before purchase Decision.
Unique design: into the vast era of digital technology, the rising competition is requiring
something unique which is rare and imitable that attracts many customers. So that, the website's,
advertisement end product must be eye catching in order to get success in two e-commerce.
Security: It is one of the major principles of e-commerce. Security and privacy must be
maintained as social sites use users information such as passport and bank details. Organization
must protect softwares and data by the reach of hacker.
Effective product description: it is an integrated part buyer's journey. Customer will only
purchase products by accessing all the detail and features for its use and resemblance. Therefore,
it is necessary to give authentic and reliable product description which is easily readable and
understandable.
Application on ASDA:
Now the digital technology and use of social media is becoming easy for every business
organisation. The Asda only required professional experts and it developers to create website and
enable online selling. The company good launch product portfolio into Twitter, Instagram, Face
book so that maximum number of people will show and give their response (Tumbas, Berente,
and vom Brocke, 2017). Through the social media platforms, Asda could gain maximum

followers and make them reach to the websites. The company needs to undertake all the
mentioned principles before selling through online so that they would not lose existing
customers. Every product must be mention with its picture, product and price details. It would be
convincible for customer to make purchase. The website and application must be user friendly
which does not interrupt any network issues or create frustration among customers. These
principles are containing every fact about buyer's journey which make them stop or away from
the product of organisation. Therefore, exam needs to undertake principal of security in a priority
basis due to having threat of hackers and data theft. If any of such things happened, it would
lower down the image of company in the eyes of customers. So that E-commerce must be secure
and safe to enable large market growth and customer reach.
CONCLUSION
It can be concluded from the above discussion that digital business is the future of
business environment and that's why every organisation should transform their business
platform. Now organisation provides goods and services both digitally as well as physically.
Companies identified innovation is the key success of organisation and that's why they trying to
keep abreast for knowing digital technologies. In addition to this, companies need to look of all
key trends in digital business as it helps in taking a competitive advantage and growth of
business. This report also analysed the models or digital business which becomes helpful for
every company towards achievement of the goals and objectives. Companies need to critically
analyse the entire model so that they can select best one. Organisation can successfully apply
digital business model after critical evaluation of pros and cons of models. They can achieve
their objectives with the help of collaborative working conditions that's why it is necessary for
company to develop collaboration between employees. This report also covers e-commerce
principles in order to analyse the impact on organisation.

REFERENCES
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