Digital Business: Trends, Analysis, and Strategies

This report provides a comprehensive analysis of digital business, examining the impact of virtual businesses on the global market and the current trends in online shopping. It explores situational and SWOT analyses, focusing on the strengths, weaknesses, opportunities, and threats within a business context, with a specific example of Asos. The report delves into digital business models, information security threats, and ethical considerations, while also defining and discussing the importance of collaborative relationships and strategic alliances. It further compares and contrasts digital business and e-commerce, outlining e-commerce principles and their application to digital business.

Digital Business

EXECUTIVE SUMMARY
Virtual business have the major impact on the global business. It is the lifestyle of the
generation to shop online. The current trends of the marketing is favourable for he business and
Situational analysis helps the business to evaluate the various factor of the macro environment.
Report also analysed the strength and weaknesses of the business. Also, explained the
importance of collaborative relationship. It helps the employees to work in team and achieve the
common goal of the business.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
QUESTION 1...................................................................................................................................4
Virtual business across the globe................................................................................................4
Key trends with Advantages and disadvantages of Virtual business..........................................4
Importance of technology along with impact on business..........................................................5
QUESTION 2...................................................................................................................................6
Define the situation and SWOT..................................................................................................6
Perform a situational analysis for Asos with the consideration of personalisation.....................7
QUESTION 3...................................................................................................................................8
Models and challenges associated with digital business...........................................................8
Discuss and define the information security threat and ethics....................................................8
Outline the challenges for information security threats and ethics in general............................8
Apply the critical analysis of emerging digital business model and challenges.........................9
QUESTION 4...................................................................................................................................9
Define new collaborative relationships and define strategies for digital technology.................9
Discuss the importance of new collaborative relationships and strategic alliances in digital
business.......................................................................................................................................9
Case study.................................................................................................................................10
QUESTION 5.................................................................................................................................11
Define digital business and E-commerce..................................................................................11
Compare and contrast the digital business and E-commerce....................................................11
Principle and application of digital business.............................................................................11
Compare and contrast digital business and e-commerce..........................................................11
Outline e-commerce principles and discuss their potential application to digital business .....12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Digital business is the mode of business in which various technologies are used to create
the unique and valuable product that enhance the customer experience. Traditional business are
modifying their business in to digital transformation(Beynon-Davies, 2020). In the current
market trends, People are more often to use the online platform to shop and It makes quick
purchasing in effective manner. This business is contributing in the advancement in the UK and
in foreign market. This report will cover the various situation and analysing the strengths,
weaknesses, opportunities and threat of the business. It also explain the virtual business and their
advantages in the global market. It will also analyse the current trends of the market. Further
more, It will explain the models of digital business and challenges associated with information
security threat. It also defined the collaborative relationship and strategies alliances by digital
business.
QUESTION 1
Virtual business across the globe.
Virtual business is doing business on online platform via the Internet. It can be with
physical stores in different locations. It will help the customer to shop with wide range of
products and services. In the current scenario, people are more often to use the online platform
and this is because the excess use of smartphones in individual lives. Virtual business is
impacting the global business towards digitalization and development of the country. Virtual
business will work with effective communication and smart use of internet. It help in shopping
the product from different countries and receive their products with quick delivery services.
Key trends with Advantages and disadvantages of Virtual business.
The current trends of the market is favourable for the virtual business due to its easy
accessibility and advance technology. People are love to shop through online platform which
offers unique and wide range of product at a point of sale. This will help the generation to cope
up with the current trends and their busy lifestyle.
Advantages of Virtual business:
 More satisfied the employees- It will help the employees to work in flexible working
hours with relax environment. It enhance the effectiveness of the individual and

Employee will work more effectively to achieve their business goal and generate higher
revenue. This give the opportunities to the skilled employee who might be not available
or willing to work in office.
 Minimize the Cost- Through virtual business, It will minimize the cost of land for
physical office and help in investing the fund in other operations due to cost cutting is
purchasing in furniture and electricity bill and other utility expenses. This contribute in
generating higher profit and revenue in the organisation.
 Higher measurability- When any business is using the virtual mode, It will help proper
execution and controlling all the work operation at a point of time due to easy
accessibility of business in virtual mode(Brock, J.K.U. and Von Wangenheim, 2019).
Through, this manager can check the availability of goods and In-process goods etc.
Disadvantages of Virtual Business:
 Lack of centralization- In virtual business, there are flexible working hours of the
employees and It is very difficult to run the business in the centralized way by assigning
duties to be completed within fixed time frame. This makes less productivity and
punctuality in the business.
 Communication can be tough- In virtual mode, there is no face-to face interaction of
the employees that may be sent wrong message to the receiver and cause a big conflicts
and misleading of the activities in the business.
 Scheduling Conflicts- When the business is conducting online then it is a problem to
manage the tasks with in a strict time frame and It causes to create dis-balance in the
business activities in the business.
Asos is the virtual business, which offers cloths and cosmetic product to their potential customer.
There are various advantages and disadvantages to deal in the virtual business
Importance of technology along with impact on business.
Asos is the virtual business, which uses advance technology to mapping dresses on model
and then customer can choose the right one accordingly. This technology help the customer to
get exclusive experience on website and the business will expand across the world. Through this,
the Asos will able to manufacture the product according to the customer need and increase their
market share.

QUESTION 2
Define the situation and SWOT.
A situation is the prospective of something in context of their location. It refers to the
condition of the business activity and what can be the measures to correct the situation. For
instance, The company is leading across the world and have good market share so this is the
situation of a particular. Situation analysis is the framework of identifying the status, capabilities
and understanding the organisational behaviour of the company. On other hand, SWOT analysis
is the toll to measure and evaluate the internal and external factor of the business and find the
ways to overcome the threat and weaknesses within the business. The difference between
Situation and SWOT is given below:
Basis SWOT analysis Situational analysis
Meaning SWOT analysis is the strategic
framework of analysing the
micro and macro factors of the
business and helps the
organisation to deal with the
outcomes.
It refers to the state of
condition with the context of
the situation of a particular
task or any business. It involve
to take the various approaches
of research for measuring the
errors of the operational
activities in the business.
Purpose The main purpose of the
SWOT analysis is to identify
the factor that is effecting the
external and internal
environment in Asos.
In Asos, the purpose is to
evaluate the situation and
evaluate the factors and rectify
them in the business.
SWOT and situational analysis helps in evaluating the various factors that impact the
external and internal factors of the organisation. Asos is using both the approaches to evaluate
the various approaches and outcome of the business and take corrective measures to solve them.

Perform a situational analysis for Asos with the consideration of personalisation.
In situational analysis the PEST approach will be used by the organisation. It is the
framework of measuring the macro and micro environment of the business that helps the
business to make strategies to deal with the outcomes. It evaluates the factors which influence
the decision making of the business and PEST analysis is explained below:
 Political: these are the factors which includes government stability and polices of
government( Capobianco, and Nyeso, 2018). This is the main factor which play an
important role in success of the business. It includes government involvement in the
business. In UK, there is stable government which help the Asos to run their business
operation successfully and business will leads to expand their target market and growth.
 Economic: These are the factors which includes economic recession, inflation, import
and export rates etc. these all factors will will be determined by the business in the easy
functioning ans stability in the business. In UK, There is economic recession in the
country and Asos will face the slowdown of the business and leads the business to
decline. These are not factors which can be control by the business. It only can solved
with the best practices.
 Social: these are factors which includes the socio-cultural factors of the market. These
factors affect the culture, religion and customer of the individual in a better way. It is
concern with the life style, choices and taste of the individuals. The manager of Asos is
evaluating and analysing the customer needs and demand and then manufacture the
product. It will help in increase the sale of the business and contribute tot he profit of the
firm.
 Technological: these are the factors which includes advancement of the technology,
Development of the product in existing business. It will help the organisation to attract
their potential customer and deal in a profitable manner. Asos is the digital business and
using advance technology to produce and deliver the product to their customer and
increase their sale and earn maximum profit.

QUESTION 3
Models and challenges associated with digital business.
A digital business model is the aspect that gives values to the costumer experience by
using digital technology in the business (Chaffey, 2019). The main motive of this model is to
create a impactful experience of the customer that the potential buyer will willing to purchase
the company's product and services. There are various types of model which help the
organisation achieve its business goal and these are explained below:
 Marketplace model- It is meant for digital platform, where there are large number of
buyer and seller meet together to meet the demand of the customer. There are many
competitors in the market that deals in a appropriate manner in this model.
 Freemium model- the main principle of this model is to competence standardization in
the business and make sure to maintain the various aspect of the business that help in
easy accessibility of various operations.
Discuss and define the information security threat and ethics.
Information security is the practices to keep the data safe and secure from unauthorised
access. It can be transmitted form one machine to another or keep store in their system, both are
the means from which data can be stolen or corrupted. There are various threat for information
security and these are explained as follows:
 Software attack- these are the threat in which the data can be attracted by viruses, worms
etc. and corrupt the data and used by unfair means in the organisation that can be badly
impact of functioning of business(Dobrolyubova, and et. al., 2017). (
 Malware- It is made up of two terms, Malicious and software. These are the aspect
which harm the system with unauthorised access in the system and use them in wrong
way.
Outline the challenges for information security threats and ethics in general.
There are various challenges for information security that impact the functioning of the
business. E- Commerce is the main concern in saving and securing the data of the
business(Kortelainen, Happonen, and Hanski, 2019).It enables the customer to use their
website and of that, there may be changes of information leakage to the customer. There may be
chances that the website can be hacked and used by the other by unfair means of business. The

data can be corrupted by less security of the business due to government law and rules in the
business operations. Securing the data with wireless computing is the big challenges that leads
to mishaps of date to the final user and hacker can easily hack the data and use that in wrong
means.
Apply the critical analysis of emerging digital business model and challenges.
There are various business model that help the Asos to run their operation in effective
manner and leads the organisation to generate more revenue. On other hand, there are various
challenges to the information security and ethics(Lukiyanchuk, and et. al., 2020).( Bartsch, and
et. al., 2020). Marketplace model will help the business to meet the need and demand of the
customer at a point of time and explain the ways to measure them. The using wireless
computing in business is the biggest change for information security to save the data and use in a
right approach.
QUESTION 4
Define new collaborative relationships and define strategies for digital technology.
New collaborative relation is defines as when two people are agree to do business for
achieving the common goal. It is preferred to work with different individual have different point
of view and opinion(Mizintseva, and et. al., 2018). It will help in achieving the common goal
effectively. There will be strength of the team work and enhance the objective of the business in
a systematic approach. Strategic alliances is the collaboration of two business parties agreed to
achieve the common goal of the business and leads the organisation to ear maximum profit.
Discuss the importance of new collaborative relationships and strategic alliances in digital
business.
There are various factors play important role in collaborative relationships and helps the
organisation to work in dynamic approaching of business.
 It helps in bring people closer together- In collaborative relationships, It enables people
to come closer and work in a dynamic environment(Nicoletti, 2016). In also motivate the
employees in the organisation for team work. When people come together It helps in easy
achievement of business goal and leads the organisation to earn maximum profit.

 It enables people to learn from each other- When people work together, It help the
individual to learn new concept with the team and enhance their knowledge and skills on
the basis of learning. This will leads to earn maximum revenue out of available resources
in the business.
 It leads to higher retention rates- When there is a skilled employees in the organisation
with the good knowledge(Spil, Kijl, and Salmela, 2016). It makes efficient and
effective worker to work in dynamic business environment and learn new concept from
the learning. This will better completion of business operation and business will retain the
market.
Strategic alliances play important role in successful running of business and there are some
factors which justifies the importance of strategic alliances.
 Helps in achieving business goal- With the help of strong strategic alliances, It will help
in creating good channel of communication in the business and leads the organisation to
earn maximum profit and generate more sale. It enhance the employees to work with
more efficient candidate in the organisation.
 It expand the customer base- In any organisation, There will be good customer base with
the formation of strategic alliances in the business. It initiate the employees to work for
the common goal and achieve the objective.
 It promote the brand image- It helps the organisation to retain their potential customer
with the help of offering quality goods and services(Tan, and et. al., 2016). Strategic
alliances will help the firm to work effectively and achieve its business goal.
Case study
When business tends to implement the collaborative relationships in their operations. It
will help in achieving the business goal effectively. It enables the Asos to implement the
activities which is been accomplishing with the help of team work. Strategic alliance also leads
the retailing business to expand their target market in to new areas and generate more
profitability.

QUESTION 5
Define digital business and E-commerce.
Digital is a type of business which uses new technology in their production or selling
process to enhance the customer experience. It is the new trends in the market which is
extensively used by the potential customer and E-Commerce is stands for electronic commerce
that is a business where customer can buy their products and services through online medium
using internet. E-commerce is operated in all four major market segment. It is commonly used by
generation and generating high sale comparing to traditional business.
Compare and contrast the digital business and E-commerce.
Digital business and e-commerce are focuses on promoting their goods and services with
the support of customer care. Digital business emphasis on buying and selling of goods online
and e-commerce is doing whole business on online platform. Asos is a digital business which is
generating higher revenues using both the methods of business.
Basis E-Business E-commerce
Requirement for operation In this business the a website,
CRM, ERP etc. is required in
the smooth running of the
business. Today generation is
also addicted to internet and
using it frequently.
In this business, main
component or can say a part of
e-commerce is website,
through this all the activities
will be done in an effective
manner.
Approaches E-business uses ambivert
approach that includes both
internal and external process
of business.
E-commerce uses extroverted
approach that includes
customer, distributor, suppliers
etc.
Principle and application of digital business.
To make money transaction easy: With the help of digital business, organisation are
accessible to do the business in an effective manner and some times, customer face problem with
the mode of payment in the shopping and with the help of internet and digitalization, It will easy

for the customer to pay according their convenience using various modes of payment. Asos will
enhance their payment modes with the help of digital business and smart use of internet.
For improving page loading speed: Customer resist to stay on a website which is facing
high traffic and slow loading speed on their website. It is recommended for the digital business
to improve their website by putting high speed in loading of pages. Asos will increase their
customer base by improving the speed of loading page on website.
CONCLUSION
It is concluded from the above report that Virtual business is changing the way of
shopping and have significant impact across the world. People are more often to use the online
platform to shop and It is the lifestyle of the generation to do shopping on website or in mobile
applications. In this report, Current trends of the market is evaluated and the advantage of digital
business that It minimize the cost of physical stores and warehousing and the disadvantage of
this business, There is a high risk of business conflicts in the organization. This report also
explains the strengths and weakness of the business with situational analysis. PEST is also
conducted in the situational analysis to evaluate the various factors of external environment.
Furthermore, It also analysed the importance of new collaborative relationships in the business
and the strategic alliances for implementing personalisation and covered the principles of
electronic business and their potentials application in the operations.