Digital Business Report: Nike's Strategies and Recommendations

This report provides a comprehensive analysis of Nike's digital business operations, addressing key aspects such as the advantages and disadvantages of digital business models, and how Nike utilizes these models to expand its market reach. The report evaluates new and emerging digital business models, including freemium, subscription, and marketplace models, within the context of key business issues like ethics and cybersecurity. It further examines the impact of collaborative relationships and strategic alliances, facilitated by digital technology, on the industry. Finally, the report discusses the application of e-commerce principles within Nike's operations, offering a holistic view of the company's digital strategies and providing recommendations for future development. The report uses the provided assignment brief to structure its content and includes an introduction, main body with task based structure, and a conclusion with references.

Digital Business

Executive summary
Based on digital business research this executive summary outlines the company's current
and further digital plans. There are various advantages and disadvantage of digital business to
overcome from disadvantage company adopt various principles and models to grow and expand
their business more. Nike is popular brand among every market place because of its quality of
products and brand values. New and emerging digital business models are essential part of
business who are operate their business on digital channels. It provide more opportunities and
assist in exploring more markets and understand various kind of demands and needs in different
countries. Collaborative relationship assist in enhancing brand values and raising sales in market
and company work regularly with collaboration and strategic alliance take care about
arrangements between two organisation who work in collaboration and helps in achieving
common business objectives and goals. Company use new collaborative relationship or enhance
their goodwill and reach more people through digital technologies. E-commerce platforms
provide various benefits to business in effectual manner. Now days every one use e-commerce
channels to provide their services and products to meet their demands and needs. Through this
delivery procedure become more easier and customers prefer online payment because it is easy
and there is no issues related to keeping cash at the time of receiving orders. E-commerce
principles assist in operate business in smooth manner and reach maximum people and locations
to expand brand.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Overview of digital business with its advantages and disadvantages in organisation...........4
TASK 2............................................................................................................................................6
Evaluate new and emerging digital business models in context of key business problem
including ethics and cyber security in company.....................................................................6
TASK 3............................................................................................................................................8
Impact of new collaborative relationship and strategic alliances via digital technology for
industry...................................................................................................................................8
TASK 4..........................................................................................................................................10
Discuss how E- commerce principles could used by organisation.......................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Digital business Refers to new creation of new business by blurring physical worlds and
digital. It adopt technologies to create innovated values in models of business, internal
capabilities and customer experiences which assist in core operations. Term consider both digital
brands and players of traditional that they are transforming business with innovated digital
technologies. It adopt technology as a benefits in external and internal operations. IT changed
infrastructure and business operation from period the internet became available widely to
individuals and businesses. Below report based on Nike, it is American multinational corporation
engaged in development, designs, marketing and sales in worldwide and manufacturing of
apparel, footwear, accessories, equipment and services (Backaler, 2019). It is based in Beaverton
in United State and founded in 1964 by Phil Knight and Bill bower-man. This report includes
digital business overview with its disadvantages and benefits, new and emerging models of
business in context of key issues with security related cyber and ethics, Affect of new
collaborative relationship and strategic alliance and how e-commerce principles could used by
company.
MAIN BODY
TASK 1
Overview of digital business with its advantages and disadvantages in organisation
Digital business defines creation of new business models through technologies and it
includes external and internal business activities. It provide various aspects that are assist in
growth of business by providing customer satisfaction and new experiences. In context to Nike,
they use various kind of digital business to reach different countries and full fill customer
satisfaction (Bakri, 2019). Nike provide different experience to people through digital platforms
and models. There are advantages and disadvantages of digital business in Nike corporation that
are explained below as;
Advantages
 Availability for 24/7: Websites play crucial role in e-business tools and it opens a door
for more benefits and opportunities for business. Now days social media and websites are
up in market because it is open to online transactions for 24/7. Availability of E-
commerce provide more advantages.

 Global reach: Via internet organisation can reach more audience in worldwide for
products and services. In current scenario online shopping become more trendy and
organisations also provide various kind of facilities in different countries to full fill
customer satisfaction.
 Quick Updates: Digital business provide quick updates related to all business activities
that includes products, website, sales in different countries, promotion and many more
(Beverungen, Kundisch and Wünderlich, 2020). Email marketing is effective tool or
platform to sending a quick updates to people in worldwide.
 No location disadvantage: Location of business play important role but physical outlets
are difficult to find for customer so digital business provide products and services in
every area. There is no disadvantage of location on digital channels.
 Saving cost and time: Operating an business through internet assist in save extra cost
and time also. Customers can reach company's products and services very quickly and
they buy through online websites and application. Company can dispatch products to
their area. Organisation can scale up and down their business operations, take benefits of
virtual storage space in unlimited manner as a reaction to customer's demand and market
trends.
Disadvantages
 High competition: In current scenario every organisation have e-commerce websites and
application to providing products and services in various location at global level. In
market there are lots of competitors who provide similar services, discounts and many
more.
 Innovation pressure: In e-business model, it exposes company to a international
competitive fields and there are tendencies for voice of brand and various competitors.
This condition leads to frequently pressure to innovate.
 Handling returns: On websites and application products are some how different so in
this when products reaches the customers is they don't like and cannot meet their
expectation then they will return it (Boone, Kurtz and Berston, 2019). In every
organisation there is return policy for particular time so company have to accept return
and provide refund them. This factor is major disadvantage for e-business and handling
returns is very challenging and extra cost or time consuming.

In context to Nike, company serve their services through digital channels in lots of
countries and they want to expand more. There are different advantages and disadvantage are
facing by Nike. Benefits are Nike's products and services available for 24/7 on their websites and
application, customers can order at any time and from everywhere. Brand have online payment
facilities on their own application or different channels where they sell their products such as
MYNTRA, FLIPKART and etc. NIKE have high reaching rate at internationally through their
brand values and digital platforms (Bulović and Čović, 2020). Company and customers both
receive quick updates, company receive updates regarding sales, promotions, customer's
informations and their demands and etc. Customer get quick updates regarding order status,
price, discounts, new launch of products and many more. There is zero area disadvantage
because customers can easily reach the brand and its goods and services. It save time and extra
cost of company and customers also.
Nike have disadvantage of High competition in market because there are lots of brands
in market who provide similar quality and price of products and services such as Adidas, puma
and etc. These brand also have similar reaching rate at internationally. Due to increasing internet
usage competitor's strategies and its competition also enhance day by day. Nike have innovation
pressure because other competitors provide new innovative products, services and some
discounts so Nike feel pressure of innovation in market if they want to meet market demand
company have to make effective strategies through digital platforms to reach more people and
retain existing customers (Cabigiosu, 2019) (CACCIANI, 2019). Through digital platforms
handling returns is very challenging for company because ones product reaches then users return
that product if their quality and other factor not match with their desires. It effect cost and time in
negative manner.
TASK 2
Evaluate new and emerging digital business models in context of key business problem including
ethics and cyber security in company
New Digital Business model refers to new form of creating new value based on
customer's development advantages adopting digital technologies. Organisation make new
business model through different digital channels which are not connected with existing models.

Increasing digital business models rise a issues of cyber security and data security growing more
technology create more challenges for business.
Emerging Digital Business model defines growth in technologies ad digital business. It
changes investors expectations and needs, also rising price pressures as an out-coming in explore
regular of services and advice model. It assist in survive in marketplace for long term.
There are various new and emerging digital business model that are described below as;
 Freemium Model: This model use more frequently and customers get services and
products at free of charge (Cennamo, 2019). Basic function are provided and no branding
of services, for premium functions and etc. This helps to Nike to reach broad consumer
base, scale organisation into new marketplace and generate profit by converting users
into paying at one time.
 Subscription model: Services and goods can mostly also be provided as subscription.
Amount that would generally occurs once is divided or services created newly that billed
periodically. Major motive behind this model is to blind consumers for long period of
time.
 Free offerings: In this model providing free discounts and offers helps in get more
popularity through internet.
 Marketplace model: This model use in digital marketplace that are create link between
seller and buyer on a common channels (Clarkson and Miller, 2020) Amount mostly
generated through fees, fixed transaction cost and commission. It is possible via use
membership fees on different channels to get amount through promotion.
 Sharing economy: Products and services can mostly purchased or make available to
other people for minimum time. It is also a economic model which refers to peer to peer
based on providing goods and services, activities of acquiring that is often the facilitated
by society based on digital channels.
 User experience premium: Good experience of users helps in adding values to
exchangeable goods. Brand or services and experience of users are improved and charge
premium prices.
 Pyramid model: In this model is typically a sales model which available for years. Sue
to easy billing by aids of technical this pyramid approach can be build quickly and
managed easily. It is interesting for goods with maximum margins and explained easily.

 Ecosystem: Blind users to an ecosystem for long time via lock in procedure in services is
dream of lots of businessmen. Basically is is area of geographic where animals, plants
and another organisms, landscape and weather woke with together to form bubble of life.
It contains biotic, parts and abiotic factors.
 On demand model: As per this model time is money, that is framework of this approach.
Quickly access is sold and premium access to time. Delivery of services and products
called up on definite point in particular time frame. Follow customer's demand can helps
in attract more people.
Nike can adopt various digital business models for accomplish more growth and enhance
reaching rate by expanding their business. Freemium model assist in offer free shipping charges
to attract more people, subscription model is trendy now days on digital platforms to provide
better facilities to regular subscribers and generate maximum revenue, Nike provide subscription
for purchasing in this people get extra benefits and rewards (Clemons, 2018). Free offering assist
in create a good image in mind of new people and existing also. Marketplace model assist in get
more profits through adds of Nike on YouTube or other digital platforms. Providing good
customer experience is must to increase sales company need to meet market trends and demands.
On demand model assist in full fill demand of customers and marketplace of different countries.
TASK 3
Impact of new collaborative relationship and strategic alliances via digital technology for
industry
New collaborative relationship refers to When two or more members perform business
task and activities together in order to achieve common business goals and objectives. It has
become a preferred resolution to performing with various individuals who have different view of
point. There are various ways to build effective collaborative relationship such are create
compelling cause in clear manner, establish group or common goals and many more.
Strategic alliance defines an grouping between two organisations to attempt commonly
beneficial task or business projects while hold its independence. Agreement is minimum
complex and binding less than joint ventures (Das, 2018) (Grubic, 2021). Two company's pool
resources make separate entity of business. Basically it is also a arrangements between two firms
to undertake mutually advantages business projects or tasks while every holds its independences.

Advantages and disadvantage of collaborative relationship and strategic alliances
Advantages
 Collaborative relationship assist in better division of workforce as per requirements and
skills or employees.
 Greater creative input, when various employees collaborating on business task and
projects then company accomplish greater sense of input in creative manner.
 Collaborative relationship helps in enhance workforce morale and collaboration of
employees also have positive impact on morale (Hemantha, 2020). Working together
assist in achieving common goals and entire organisation can celebrate their growth both
teams and individually and this can provide more positive response towards job and
group members.
 Strategic alliances assist in gaining new customer base and add on competitive skills.
 Organisation can enter new territories or new geographic market with good partner who
understand and knows ropes in specific territory.
 It make different sources of additional profit and instead duplicating resources to
partners who are non alliance, company keep work in family by expanding and
improving resources available.
 Strategic alliance provides access to new target markets.
 Assist in create scale of economies and this defines to cost benefits that organisation get
from ordering and expanding in greater volume from suppliers and vendors.
 It provide strengths to business objectives and business goals.
Disadvantage
 Collaborative relationship create lots of faux leaders. Some time too many employees or
employers are trying to lead team or group of people and no one want to take place at
back-seat.
 Due to this conflicts are created in working styles.
 It create lack of trust among group members.
 Strategic alliance provide language and cultural barriers in business.
 Lack of trust among team members and in organisation.
 Goodwill damage.
 Differences in styles of management.

 Loss of autonomy.
Nike have many collaborative relationship with other brands and some non profit
organisation (Herbert, 2020). To improve collaboration company can take benefits from digital
platforms and they can divide work on application or websites to improve efficiency. Effective
collaboration can avoid any conflicts and barriers. Nike can level company's ups and downs by
using alliance partners to work related to outsource during rises in business or partner's economic
cycle at market place. Company can create valuable intellectual capital, for this Nike can be
more holistic customer advocate and with competitor industry to make magic. They need to get
new resources and improve old one resources and build a different perception of every industry.
Company can collaborating with digital campaigns to increase brand values in market and people
also aware about brand products and services.
TASK 4
Discuss how E- commerce principles could used by organisation
E-commerce defines Business model which lets organisation and individuals sell and buy
things through internet. It operates in four main market segment that are Business to business,
Business to consumers, consumer to consumer and consumer to business. E-commerce operated
through tablets, computers and smart phones (Hrynko, 2019). It assist in establish a business in
wide market presence by offering cheaper and efficient distribution platforms for services and
products. There are various benefits that are it is convenience or occurs for 24 hours, enhance
selection.
Principles of E-commerce
 Customer support: In this customer's satisfaction and their experience matters a lot
business give first priority to consumers only and organisation provide helps related to
order and buying issues. Every company make different section on website and
application of customer support to provide help. They provide help to customers and
resolve any technical issues that they may face with services and products.
 Promotion and marketing: E-commerce assist in more marketing and promotional
activities to perform in effective manner. Through digital platforms it become easy to
promote products and services in market it is cost effective and less time consuming also.
Promotion is a part of marketing communication which is adopt to inform target

audiences of related merits of services, issue, brand and product, mostly persuasive in
nature. Major motive of promotion is to enhance awareness, generate sales, create interest
and build brand loyalty.
 Unique design element: E-commerce platforms require different design elements in
products and services. Company need attractive pictures of every products to attract them
towards products to purchase it. Also use visual design in effective structure and convey
messages through visually. There are different elements that are used by organisation
such as colour, shape, texture, logo, typography, scale and many more.
 Know target audience: Through e-commerce platforms it is easy to target different
audience and understand them in better manner their demands and needs. There are
various ways that are assist in defining target market such as identify present customer
base, select particular demographics to target market, evaluate decisions, analyse
competition around company.
 Effective product description: On e-commerce platforms it is important to mention
product description in right manner so it become fair deal between customer and
company. An effectual product description is copy or marketing which are describe what
a services and product is and reason behind worth purchasing. Main purpose of this is to
supply consumers with essential information about benefits and features of goods so that
they were compelled to purchase.
 Express delivery: E-commerce provide fast delivery options in different locations so
customers get their order very quickly and enhance brand values. Basically is fastest way
of shipping. Consumers pay an extra cost on shipping for delivery of products as the
shipment will transported to them anywhere in between 24 or 72 hours.
 Real time information: E-commerce channels show real time of delivery and its status
so customers can track their goods very easily. Basically RTD is information which is
delivered quickly after collection . It is often adopt for tracking or navigation. Such data
and information is usually procured using RT computing although this can be stored for
further or data analysis on off line basis.
 Digital payment: On e-commerce platforms consumers can make their payment through
online such as cards, various kind of wallets and many more. It become easy for both
customers and for industry. It also way of payment that is made via digital modes. In this

type of payments, payee and payer both use online modes to transfer and receive amount.
In other terms it is also refers to electronic payment.
Nike follow all e-commerce principles in effective manner and Nike is well known brand
in every country they have great services for customers on e-commerce platforms and also
provide return or exchanges policies to customers to provide customer satisfaction. They target
all age group people from kids to old age people and also provide great quality (Kaplanidou,
2018). Nike shoes are more popular in every country and provide many variety in this. Nike
company use different e-commerce platforms such as FLIPKART, MYNTRA and many more all
have great facilities and services. Brand and e-commerce platform accept online payment and e-
wallets as per country's currency. People can easily track their order through different channels
and their own application. Company export their products in different countries and have support
of country's government.
CONCLUSION
It is concluded the above report, digital business is essential part in business in current
scenario. Because it provide various advantages that are helpful in growth of business at
international level. Digital business have high reaching rate in different locations and enhance
brand image. New and emerging digital business models are both needed for expanding markets
and brand. Collaborating and strategic alliance helps in build trust among employees and
partners and achieve common goals and objectives of business. There are various e-commerce
principles that are helps to business in various aspects such as in effective marketing and
promotional activities, reach new people and many more in short digital business provide success
to organisation in effectual manner. Company needs effective strategies to avoid any competition
in market.