Digital Business: Trends, Models, and Analysis Report - LSC

This report provides a comprehensive analysis of digital business, focusing on marketing mix, virtual business management, and the significance of personalization. It explores key trends, advantages, and disadvantages of managing virtual businesses in the global environment, comparing an...Read More

Digital Business

Executive Summary
The prominent report is based on the effective understanding and concept of marketing mix
which is useful for company in order to achieve prominent goals and objectives. For this, the
suitable objective is to identify the marketing essentials and also undertake the effective
discussion regarding the key roles and responsibilities for effective marketing functions which is
related with wider context. Moreover, it tends to analyse the roles and responsibilities of
marketing environment and effective interrelationship among the marketing with other units. The
report tends to cover the effective marketing plan for the effective application of 7P's to achieve
objectives of company.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Critically discuss the key trends, advantages and disadvantages of managing virtual business
in the global environment.......................................................................................................4
Compare and contrast Situation and SWOT analysis. Perform a situation analysis for
Birchbox focussing on personalisation...................................................................................6
Critically evaluate emerging digital business models and challenges associated with
information security threats and ethics in general. Perform a critical analysis with respect to
the case study scenario...........................................................................................................8
Critically evaluate the importance of new collaborative relationships and strategic alliances
through digital technology for implementing personalisation................................................9
Compare and contrast digital business and e-commerce. What are the E-Commerce principles
and discuss how they could be applied to digital businesses?..............................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Digital business is the creation of new business by describing the digital and physical
world as the market sector is quite wide and dynamic and also expanded at the large level.
Considering the effective use of internet, digital tools and technology with the effective use of
social media platform and techniques (Chaffey, Edmundson-Bird and Hemphill, 2019). This
report depicts the brief knowledge regarding the significance of personalisation and uses in
digital business. For this, Brichbox is considered with is a retailer and established in U.S. For
this, company deals in online subscription and prominent services regarding the expansion by
focusing on personalisation. The report tends to cover the suitable benefits and drawbacks of
managing virtual business, significance of technology, situational analysis and emerging digital
business model and challenges which are concerned with information security ethics and threats.
It also tends to develop strategic alliances and digital business considering the e-commerce with
principles.
MAIN BODY
Critically discuss the key trends, advantages and disadvantages of managing virtual business in
the global environment
Global environment depicts the environment which is uncontrollable and impact the
decision making of company. In regard of this, effective management of virtual business is
essential regarding the changing period of time that tends to effectively execute the business
operations, activities and functions effectively. For this, the virtual business depicts the kinds of
business regarding the activities and operations with the help of internet. In terms of this, the
respective company tends to carry forward suitable functions with the help of websites and
applications and there are several key trends for the virtual business which are discussed as:
Key trends: Increase for the reason of virtual work: It represent the effective key trend for the
suitable reason in order to do work effectively and virtually that leads to increase scale
from 2019 for having sudden occurring of pandemic situation (Sousa and Rocha, 2019).
In this, individuals are willing to work at their own place.

 Contract virtually working: It is another trend for managing virtual business for which
employees effectively recruit employees and contract on the grounds of working to
carried out things effectively for stipulated period of time.
Benefits for managing virtual business: Low overhead cost: It is one of the effective factors which is beneficial for the virtual
business to carry forward out. For this, company tends to run their activities with the help
of internet and also tends to worry regarding leasing office, furniture, electricity bills and
so on. Satisfied employees: It is undertaken as the factor in which employees tends to work
effectively and virtually which is quite satisfied in terms of retaining their company for
the longer period of time because of flexible hours.
Disadvantages: Lack of Camaraderie: When is prominently carried out it is quite difficult in terms of
communicating in an effective manner. It is prominent at the workplace which is quite
effective to have effective communication (Senyo, Liu and Effah, 2019). It also tends to
motivate workforce to communicate in an effective manner and also leads to enhance
capabilities to collaborate with others. Risk of opportunities: It depict the demerit for suitably managing virtual business which
is quite risky for having prominent reputation for their customers and not effectively trust
and does not exist physically. Therefore, it is quite critical to be aware regarding the
drawback.
Significance of technology and its impact on business:
Within an organisation, technology is important and useful as without this, it is quite
difficult to survive in the competitive market. It is also essential to use technology in order to
offer competitive edge in business area. Improve communication: It depict the business in which technology is effectively used
in order to enhance communication as by effectively using social media and other tools
for having effective communication including, text messages, smart devices, social media
ad so on. Effective decision making: It depict another reason by which the suitable significance of
technology is analysed by effectively using it for company which is helpful in making

effective decisions. It is done with the effective analysis of issues and errors by using
several tools in company.
Impact: Helps in improving competency level: By using effective technology it leads to impact
the business to enhance the competition for company in the same industry. Moreover, by
considering the suitable adaption of internet and using prominent tools is helpful for
company to execute strategy.
 Improve productivity: It prominently impact the functioning of business and put
emphasis on new approaches and technologies which is helpful in increasing
productivity. Moreover, considering effective productivity depict suitable effectiveness of
work in order to increase performance at higher level (Xu and Koivumäki, 2019).
Compare and contrast Situation and SWOT analysis. Perform a situation analysis for Birchbox
focussing on personalisation
Personalization depict the process in terms of meeting up with the needs and requirements
of individuals by considering Data Analytics. From the changing era it becomes quite important
to focus on the personalization regarding the development of positive relationship among the
parties. In terms of Birchbox the prominently focus on the concept of personalization is useful in
order to increase experience in an effective manner. In regard of the situation analysis defect the
effective combination of both internal and external environment which is helpful for enterprise in
order to examine customers competitor’s environment and many more. To carry forward the
report porter’s 5 force is considered it is mentioned as underneath
Porter Fiver Force analysis
This model is helpful for company in order to analyse threads environment competitors and
so on by considering problems in the internal external side of company. It depicts the various
components which are mentioned as below
 Bargaining power of Suppliers: It represent the competitive force with suppliers suitably
bargain power in prominent manner (Ansong and Boateng, 2019). In relation with
Birchbox the bargaining power of suppliers is low because there are various vendors and
providers who offer better options to organise and run business.

 Bargaining power of buyers: In relation with this the bargaining power of buyers is
moderate as there are a large number of buyers who are ready to purchase commodities
and get subscription for the respective company.
 Threat of new entry: Within the Retail Industry of cosmetics there is a large amount of
competition but the threat for new entry is low as it took time for the new entrants in
order to target customers in the market area. In terms of the respective company they
effectively implement their services for the online platform.
 Industry rivalry: It represents that the industry of cosmetics faces immense and intense
competition in the market. It is analysing that it is important for Birchbox to prominently
execute strategies it is easy to deal with competitors in effective manner (Scuotto and et.
al., 2019). Therefore, the degree of competition is high when the customer expectations
are dynamic and changeable regarding the availability of alternative options. Threat of substitutes: It represent another competitive force that effectively shape the
industry and represent the substitute for the replacement of product by others full stop in
terms of respective company the threat for substitute is moderate and prominent use
personalization to target their customers effectively.
SWOT Analysis
This Framework is reliable for company in terms of analysing internal capabilities by
effectively sassing the strengths weaknesses threats and opportunities. In terms of Birchbox the
considered this framework and it is explained as below
Strengths Weaknesses
 The major strength of Birchbox is that
they prominently offer their services
through the online platform by
targeting their customers and also focus
on the personalization and
customisation that makes them
different from their Rivals (Fahlevi and
et. al., 2019).
 Currently companies moving towards
the advanced technology and because
of this they faced lack of financial
resources and also face difficulty in
terms of expanding their business.
Opportunities Threats

 Because of the advanced use of
Technology, they effectively consider
the opportunity process more for their
customers.
 The prominent threat is that because of
the lack of access of resources the
environmental practice nurse in local
community might impact negatively on
the functioning and running of
company.
Therefore, by effectively analysing these functions it is analysed that effective examination
of both internal and external environment is important by considering the market situation. It
becomes the suitable duty of manager to make sure that both of the factors are required to use in
an effective manner.
Critically evaluate emerging digital business models and challenges associated with information
security threats and ethics in general. Perform a critical analysis with respect to the case
study scenario
For an organisation it is important to effectively use marketing strategies and models by
which they effectively consider and accomplish their objectives in an effective manner. There are
various types of emerging digital Business models which are discussed below:
Open source model: This model is developed by the community developers in terms of vomiting
suitable access to software. But now it is not available for free most of the organisations pay
subscription fees and amount in regard of their open source software (Urbach and Röglinger,
2019). Therefore, it is considered as the most utilised digital business model.
Benefits:
 Provide access: With the effective use of digital business model it represents the easy
things for company like suitable Access for software and use it as per their uses. cost effectiveness: Undertaking this model it is quite cost effective as many individuals
use this and it also has an average subscription amount which is charged for the
additional features.
Drawback:

 Vulnerable to malicious user: As per the open source digital business model not each
and every individual has got suitable intentions regarding their uses and also detect that
there are various users to take advantage of the open-source prominently.
 Not user friendly on all devices: It represents another demerit of using this model as it is
not compulsory as it worked on each and every smart device. Therefore, it reflects that
open source might not be quite user-friendly.
Free model: It is undertaken as another digital emerging business model that leads to make
things easier for the effective use of products and after that monetization is being done
considering the large number of individuals who tends to use products and services (Riera and
Iijima, 2019). By this it is easy for both the customers and company to accomplish their
objectives. For example, Facebook and Google prominently used this type of free model.
Benefits:
 Increase image of company: By undertaking this model company is capable to improve
their reputation in market and also leads to what the brand awareness at the global level
for the large number of users. Enhance productivity: Undertaking this business model helps in increasing the
productivity as by this working efficiency is enhanced.
Drawback: Uncertain situation: The prominent drawback of this model is that it can packed buy the
uncertain events including customer change behaviour market Trends and many more.
Challenges associated with information security threats and ethics:
 Customer Virus: It depict the biggest threat considering the information security as they
are the kind of computer programs that prominently modify the files into their own codes.
In terms of Birchbox the competitive effectively put these computers viruses into their
information security system.
 Unauthorised access: By considering the suitable rise and effective use of digital
technology hackers has the competency to have effective access to the other information
security system (Härting and et. al., 2019). It represents the major challenges which are
required to Birchbox and also needs to update their information considering the
application and website.

Therefore, by considering the above discussion with the help of digital business tools in
enterprise it leads to make things easy for them to reach towards the top customers. Moreover, it
is easy to identify that there are several threats considering the information security which are
required by company to operate their business by internet.
Critically evaluate the importance of new collaborative relationships and strategic alliances
through digital technology for implementing personalisation
Because of the prominent rise in competition various organisations effectively used several
tactics regarding the growth and development of company. In terms of Birchbox the tends to
focus on collaborative relationship with the objective of executing personalization in business.
Collaborative relationship represents the procedure of working collectively with the objective of
accomplishing desired objectives (Olbert and Werner, 2019). Therefore, it represents the
strategic Alliance which is helpful for executing personalization. Hence the significance of
collaborative relationship and strategic Alliance is mentioned as underneath:
 By taking the prominent focus on the collaborative relationship it is quite easy for
company to expand their business activities at the international level by sharing
profitability and losses. In terms of respective company, they tend to have development
of relationship by effective collaboration with other organisation.
 Along with this company prominently opt collaborative relationship and strategic
Alliance which is easy to align and accomplish goals and objectives in an effective
manner. Besides this personalization is executed by them undertaking the suitable use of
digital technology at the advanced level (Arzoglou, Elo and Nikander, 2019). For
instance, by considering the strategic Alliance and collaborating with draper James,
Birchbox is capable enough to suitable fulfil the requirements of individuals in order to
deliver products on the monthly basis instead of one.
 Therefore, these are important to be considered as it is helpful in order to assess the user
data by gaining effective information regarding customers which is useful to understand
the requirements of individuals.
 Moreover, both of them are useful by digital technology which is helpful in executing
personalization suitably. In relation with the respective company they also prominently
focus on expanding collaboration with other organisation by which they have prominent
access to the large sources and small customers.

Therefore, by considering the above discussion it is analysed that effective use of this
collaboration and strategic alliances is helpful for company to accomplish its objectives.
Moreover, they both are useful to execute the personalization by which they are capable enough
to develop positive relationship with each other. Along with the suitable rational for the long-
term survival business is effective for company by focusing on suitable fulfilment of the needs
and requirements of individual.
Compare and contrast digital business and e-commerce. What are the E-Commerce principles
and discuss how they could be applied to digital businesses?
Within an enterprise digital business and e-commerce both are important in terms of
focusing and effective learning of company. Undertaking the retail sector most of the
organisations prominently use digital business (Stolyarov and et. al., 2019). Undertaking the
changing market Trends, it is important to be aware regarding the goals which are accomplished
effectively. Therefore, these are different from each other and undertaken the comparison is
explained as underneath
BASIS Digital business E-commerce
Meaning
It represents a suitable business that
consider the advanced and update
Technology to consider the
competitive advantage within the
functions and operations of
company.
It represents the purchasing
and selling of commodities by
considering the suitable use of
internet and online platform.
Objective It represents a suitable objective of
digital business to carry forward
business activities by having
effective use of digital platforms.
By undertaking the suitable
use of e-commerce its basic
objective is to offer products
and commodities with the help
of online which is considered
as secured way.
Applications Digital business is effectively used
and the wider scale undertaking the
E-Commerce effectively useful
for the retail operations and

market sectors. activities.
Therefore, it is analysed that it is essential to prominently focus on the suitable concepts
undertaking the effective outcomes. Therefore, it is important to use them in an effective manner
considering the market analysis undertaking the issue which does not occur. With the concept of
various types of principles which are mentioned as below
Business plan:
It suitable represent the most essential principal for The E-Commerce that reflect
planning considering the business which is easy to carry forward the procedure. It is quite time-
consuming process which is required for the proper knowledge market research analysis and
strategy. Therefore, without executing plans it is not so easy to accomplish objectives and goals.
Responsive e-shop:
It is another principle which is essential and also specify the E-Commerce and its
requirements towards bi responsive and also aware regarding the enquiry problems and positive
attraction of customers (Gray, 2019). In this company is quite fast towards response and also
depicted the ability to enhance their brand value at the high level.
Be-aware of returns:
In this principle of e-commerce and depict the suitable business activities which leads to
run online activities and also be aware regarding the date and time of written by the side of a
customer. It is the crucial because it leads to keep update regarding the return and also helps in
increasing trust of customers for business.
Use many payment methods:
This principle of e-commerce is helpful in terms of reflecting towards The E-Commerce
business and it is helpful to use alternative as the variety of payment method including e-wallets
like Paytm and many more (Olaf and Hanser, 2019). Moreover, the cash delivery can also be
used by them as the payment method. As there are various types of payment methods which are
opted by customers.
Therefore, it is analysed that both the digital business and e-commerce are required in order
to carry forward the suitable objectives in an effective manner. Moreover, the factor market
research is required considering the positive outcome. Along with these various types of
principles are discussed and for this E-Commerce also conducted over the tablets Smartphones

and computers by describing the digital version of catalogue shopping. It prominently presents
the product and service it is available by E-Commerce transactions considering box music tickets
and financial services.
CONCLUSION
By taking the above discussion it is analysed that digital business is increasing in the market
considering the suitable rise of competition for business which is interconnected for the
digitalization. It is essential to be aware regarding the digital businesses that leads to hertz the
achievement of suitable goals and theories. This report gives the brief information by focusing
on the personalization sector. it also discusses the concept of virtual business analysis of
environment with the help of suitable frameworks collaborative relationship and comparison
among the digital business and e-commerce.

REFERENCES
Books and Journals
Ansong, E. and Boateng, R., 2019. Surviving in the digital era–business models of digital
enterprises in a developing economy. Digital Policy, Regulation and Governance.
Arzoglou, E., Elo, T. and Nikander, P., 2019, June. The Case of iOS and Android: Applying
System Dynamics to Digital Business Platforms. In International Conference on
Computational Science (pp. 499-506). Springer, Cham.
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-commerce
management. Pearson UK.
Fahlevi, M and et. al., 2019. Cybercrime Business Digital in Indonesia. In E3S Web of
Conferences (Vol. 125, p. 21001). EDP Sciences.
Gray, D.E., 2019. Doing research in the business world. SAGE Publications Limited.
Härting, R and et. al., 2019. Potentials of Digital Business Models in the retail industry–
Empirical Results from European Experts. Procedia Computer Science, 159, pp.1053-
1062.
Olaf, J.M. and Hanser, E., 2019. Manufacturing in Times of Digital Business and Industry 4.0-
The Industrial Internet of Things Not Only Changes the World of Manufacturing.
In Advances in Manufacturing Engineering and Materials (pp. 11-17). Springer, Cham.
Olbert, M. and Werner, A.C., 2019. Measuring and interpreting countries’ tax attractiveness for
investments in digital business models. Intertax, 47(2).
Riera, C. and Iijima, J., 2019. The Role of IT and Organizational Capabilities on Digital
Business Value. Pacific Asia Journal of the Association for Information Systems, 11(2),
p.4.
Scuotto, V and et. al., 2019. The shift towards a digital business model: A strategic decision for
the female entrepreneur. In Women Entrepreneurs and Strategic Decision Making in the
Global Economy (pp. 120-143). IGI Global.
Senyo, P.K., Liu, K. and Effah, J., 2019. Digital business ecosystem: Literature review and a
framework for future research. International Journal of Information Management, 47,
pp.52-64.
Sousa, M.J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research, 94, pp.257-263.
Stolyarov, N.O and et. al., 2019, April. The digital reality of the modern economy: new actors
and new decision-making logic. In Institute of Scientific Communications
Conference (pp. 882-888). Springer, Cham.
Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations
rethink their business for the digital age. In Digitalization Cases (pp. 1-12). Springer,
Cham.
Xu, Y. and Koivumäki, T., 2019. Digital business model effectuation: An agile
approach. Computers in Human Behavior, 95, pp.307-314.