Business Report: Digital Solutions - Market Analysis and Strategy

This report provides a comprehensive analysis of a proposed new business venture, "Digital Solutions," which aims to assist clients in their digital transformation processes. The report begins with an overview of the business idea, focusing on its objective to enhance operational customer value through digital solutions. It then evaluates the external environment using a PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. The report also includes an in-depth discussion of the competitive landscape, applying Porter's Five Forces to assess threats of new entrants, bargaining power of suppliers and buyers, industrial rivalry, and threats of substitutes. Finally, it suggests a target market for the business, focusing on organizations seeking to implement digital transformation strategies, particularly those with limited online presence, emphasizing the development of innovative digital solutions to enhance their brand and sales. The report concludes with a summary of the key findings and recommendations for the business.

Introduction to
Business Operations
and Management-
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the proposed new business idea.........................................................................3
Evaluation of external environment.......................................................................................4
Discussion of competition......................................................................................................5
Suggestion for proposed target market...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The changing external environment has lead to lots of threats and opportunities that can
be availed by a business in order to achieve higher competitive advantage. For this there is
requirement to fill the market gaps by identification of the scenario of market demand and no
supply of such demands of the target market of customers (Weill and Woerner, 2018). Present
report is based on developing of a new business idea by making a detailed evaluation of the
changing external environment along with a in depth analysis of the level of competition. Further
based in this discussion and analysis there is suggestions that are developed for the proposed
target market of the new business.
Overview of the proposed new business idea
The present new business idea is based on making a detailed evaluation of the way client
and customers can transform their business to a digital transformation process. The name of the
business venture that is based on assisting of the customers with development of digital solution
for people is named as “Digital solutions”.
The main idea behind this new business is based in the focus of overall strategy that will
be according to and with a aim driving of the operational customer value with higher
operational effectiveness so that there can be a thrive towards evolving world.
Main aim: The major objective of this new business is to be a popular services so that there can
be review of the present digital capabilities of business and their present business digital
aspirations across the organisations. It is related to future tech so that there can be formation of a
base line of the digital strategy and further based on that there can be a effective action plan that
can be formulated for organisations based on high customizations (Dixon, Brohman and Chan,
2017).
According to figures of Tech-jury it has been anticipated that artificial intelligence is a
market that is expected to be worth of almost 60 billion dollars in the coming time period of five
years that is 2025. UK government has developed a intention for promotion and rapid progress
of the artificial intelligence industry that us from 115 million pounds in Artificial intelligent
training at the graduate level. The market is them starring that there is a wide gap between

artificial intelligence leaders and the ones who are reaping the benefits from the improved
revenue generation of capabilities that is the AI laggards.
Evaluation of external environment
For the purpose of making a detailed evaluation of the present external environment and
the way this environment is going to affect digital solutions in both positive or negative manner.
There is a detailed evaluation that is made on the basis of application of PESTLE analysis as a
widely used framework to draw proper conclusions for the new business venture:
Political factors:
It is factor that includes the discussion based on the way political changes are going to
affect the future business decisions (Zott and Amit, , 2017). There is anticipation of higher
government spending because of the present corona outbreak that is predicted to economically
affect the changing nature of industry.
Economic factors:
It includes the economic aspects of a country that are related to the cultural changes and
demographic changes that are taking place at present moment and may continue in the coming
future time period for a short term.
Social factors:
Such as COVID outbreak has resulted into a scenario where people are preferring online
modes of shopping as it is according to the policies of social distancing and leads to prevention
of spreading of viruses. People are now ignoring the situation of large gathering or retuning to
public spaces so it leads to a situation of higher growth prospects for online form of businesses.
Technological factors:
These factors are those that are related to the advancements of technology that can affect
the business functions and operations. There are many business that are relying on use of e
commerce so there is focus on digital business. There is requirement to lay emphasis on websites
by all the brick and motor business so that there are right digital marketing activities that can be
developed for the customers. These activities will be according to the rules and norms that are
set by the government as part of COVID regulations.
Legal factors:

It includes the overall legal requirements that are applied on a business according to
client requirements. There are certain changes that have to be considered by business according
to the industry specific regulations (Sousa and Rocha, 2019). There are wider changing of laws
and regulations such as general data protection that have been implemented in year 2018. further
there are significant changes that are changing very fast and are to be considered by
communicating with the prospects.
Environment:
It includes the external environment that is providing all the required resources to
organisations. It is also a very important factor that includes the steps of forms and whether there
is focus towards stable measures that are adopted by the business in order to deal with the impact
of fast changing environment. There are any weather related issues that is generally not a
concern for the present in business venture “Digital solutions” because this it is a venture that is
based on a complete digital business model. Hence there are not much environment related
factors that are to be considered in this scenario.
Discussion of competition
For the purpose of making a detailed evaluation of the overall completion that is part of
the external Market and the target market of the business there is requirement to analyse by
application of Porters five forces as a framework. Competition in digital field has been rising at
rapid scale. With wide use of internet and fast changing of consumer trends & behaviour,
competition is increasing & impacting upon business sector at larger scale. It is type of
framework which is mostly used for purpose of analysing factors that shape business at wider
context. In context of chosen entity, it is also essential for them to use this framework on basis of
which it is easier to make proper decisions (Berghaus and Back, 2016). For this purpose there is
analysis of the fives forces of Digital solutions as mentioned below:
 Threats of new entrants: This factor is associated with new business that can enter the
same industry and have the same share of target market. These generally include the
start-ups and the tech giants that are having a vision. They are focussing on building up
of a new business model that is powered by a new platform eco system for growth of
digital business. In case of present business of digital solutions it can be said that there is
a very high threat of new business that can enter and posses a threat for them as there is a
increasing prospects of future growth in the digital industry because of the business

moving towards e commerce channels. Threat of new entrants depends upon several
factors such as less involvement of government, low business are with high customer
demands etc.
 Bargaining power of supplier- It is another essential factor in which it shows about
how intensity up to which supplier can bargain. In context of selected organisation,
supplier are being considered as most crucial as they assist in reaching to customers in
proper manner. So, bargaining power of suppliers is higher when there there are few.
Thus, it is crucial to focus on selecting of supplier in most effective manner (Itälä and
Töhönen, 2017). Bargaining power of buyers- In this force, buyers bargaining power is being analysed.
It is seen that buyers often demands for high bargaining power because to gain better
quality products at affordable prices. Bargaining power of buyer is mostly high when
suppliers are less and buyers are more, also when resources are available at wide range.
In relevance of chosen entity, it is necessary for them to have appropriate buyers & also
power of bargaining is also moderate. Buyers are to be considered as asset of firm who
generate profit & sales to business. Industrial rivalry: It depicts about intensity of competition in market. Industry rivalry is
necessary to be scanned & examined so that strategies are implemented accordingly.
Moreover, by proper focusing on this industry rivalry makes it easy for company to carry
out decision making process effectively. It is duty of manager to make assure about these
rivalry so that competitive benefit is achieved at all aspects (Genzorova, Corejova and
Stalmasekova, 2019). Digital solutions will get a competitive advantage as there will be
focus on five major areas of services in the digital platform that will be offered by this
business that includes: Managing of technological wizard Writing of e mails and auto responders online resining sales of products
 Holding of inventory and dealing with shipping issues.
 Threat of substitutes- In this element of Porter Five Force, substitute is defined as
replacement of product. It is crucial to have knowledge about product substitute so that
competitive advantage is gained and specification of product are also improved to satisfy

need of customers at all aspects. In relevance of selected organisation, services which are
provided by chosen entity are rare and which leads to low threat of substitutes.
Together all the above mentioned services will be offered in a package to the customers
which will be highly customized according to their specific requirements so that they will
experience a complete innovative solutions to all their problems of moving towards digital
business. Further, it has been also examined that it is time consuming process but is an effective
on e and requires proper knowledge & skill to understand. Moreover, when applying this
framework, proper scanning of environment is needed to be done.
Suggestion for proposed target market
The main target segment of customers will be based on organisational who are looking
forwards for implementation of a digital transformation business that lies primarily with the
alignment of their laid business goals. There has to be movement away from implementation of a
artificial intelligence technology that is based on initiative level and building up of a wider
enterprise strategy (Rojers, 2018). It is necessary to be aware about target market sol that
decisions and resources are to be carried out by entity in most appropriate manner. The proposed
target market of selected firm are mostly digital businesses clients & agencies who are keen to
develop their enterprises activities globally through using digital tools & techniques. In business
sector, without targetting market, it is not possible for company to achieve their goals as well as
objectives.
The target market will be mainly organisation that are dealing in retail segment of
customers and presently only having physical locations or very limited online presence. The
digital solutions will emphasize mainly on assisting the organisations with enhancing their
present level of sales by influencing the business models by creative and innovative digital
solutions to market their brand for their target Market of customers ( Li, 2020). It is a tool that
will allow business a opportunity to further expand their business by approaching to their
customers in the most unique manner which is going to further leads towards creation of a strong
competitive advantage for such organisations in comprise with other established competitors of
the market.

CONCLUSION
From the above discussed scenario it can be summarized that there are different aspects
of business venture that has to be considered while a new venture is being launched. For this
there is a need to make a detailed evaluation of the external macro environment and the way it is
going to posses a impact on the overall functioning of business. Apart from this porters five
forces is also a framework that is used in order to make a analysis if the various competitive
forces that are part of the external environment and are going to affect the long run functioning
of the business.

REFERENCES
Books and Journals
Weill, P. and Woerner, S., 2018. What's Your Digital Business Model?: Six Questions to Help
You Build the Next-Generation Enterprise. Harvard Business Press.
Remane, G., Hanelt, A., Nickerson, R.C. and Kolbe, L.M., 2017. Discovering digital business
models in traditional industries. Journal of Business Strategy.
Dixon, J.A., Brohman, K. and Chan, Y.E., 2017. Dynamic Ambidexterity: Exploiting
Exploration for Business Success in the Digital Age.
Zott, C. and Amit, R., 2017. Business model innovation: How to create value in a digital
world. Marketing Intelligence Review, 9(1), pp.18-23.
Sousa, M.J. and Rocha, Á., 2019. Skills for disruptive digital business. Journal of Business
Research, 94, pp.257-263.
Berghaus, S. and Back, A., 2016, September. Stages in Digital Business Transformation: Results
of an Empirical Maturity Study. In MCIS (p. 22).
Itälä, T. and Töhönen, H., 2017, July. Difficult Business Models of Digital Business Platforms
for Health Data: A Framework for Evaluation of the Ecosystem Viability. In 2017 IEEE
19th Conference on Business Informatics (CBI) (Vol. 2, pp. 63-69). IEEE.
Genzorova, T., Corejova, T. and Stalmasekova, N., 2019. How digital transformation can
influence business model, Case study for transport industry. Transportation Research
Procedia, 40, pp.1053-1058.
Rojers, J.P., 2018. Digital Transformation, Business Model Innovation and Efficiency in
Content Industries: A Review. The International Technology Management Review, 7(1),
pp.59-70.
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 92, p.102012.
Online:
The new B2B sales challenge: how to stay human in an increasingly digital world, 2020 [online],
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