Digital Business Model Evaluation for Nisa Retail (BUS 101)

This report provides a comprehensive analysis of Nisa Retail Limited's digital business practices, focusing on e-commerce adoption and digital payment systems. It begins with an introduction outlining the importance of digital transformation in the competitive retail landscape and then presents an overview of the company. The report then delves into the advantages and disadvantages of digital practices for Nisa Retail, covering aspects such as increased sales, convenience, cost reduction, and enhanced customer interaction, as well as addressing issues like security concerns and operational costs. A key focus is the evaluation of a new digital business model, specifically a subscription model, to address organizational challenges. The report further examines the impact of collaborative relationships and strategic alliances through digital technology, emphasizing the benefits of partnering with IT firms. Finally, the report includes recommendations and a conclusion summarizing the key findings and implications for Nisa Retail's future digital strategy.

DIGITAL BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Providing advantages and disadvantages of digital practices of NRL........................................3
Evaluating new digital business model to deal with context of organization issues..................5
Evaluating impact of new collaborative relationship and strategic alliance trough digital
technology...................................................................................................................................6
Usage of E-commerce principles................................................................................................8
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digital business refers to the activities that are linked with online and technological
devices. In competitive era it has become essential for companies to adapt changing
circumstances that can provide flexibility and feasibility to customers. The chosen company in
the current case study is Nisa which is retail firm of United Kingdom. It deals in groceries selling
that was entirely owed subsidiary of Cooperative Group Limited (CGL). The present report will
give emphasis on adaption of digital payment system and e-commerce in organization practices.
In addition to this, advantages and disadvantages related to it will be mentioned in current report.
Key enterprise issues that can be faced by firm will be overcome with context of digital business
will be included. The impact of new collaborative relation with strategic alliance with online
technology for Nisa Retail Limited (NRL). The present study will give emphasis on e-commerce
principles along with recommendation for tackling concerned issues.
Providing advantages and disadvantages of digital practices of NRL
It is operated in 1970 and has been working for 51 years. There are various opportunities
that company has grabbed and achieved the current position in industry. The firm has agreed to
CGL for selling itself. With help of CGL company has reached new heights in less span of
period. For attaining competitive advantages it has become crucial for every type of organization
to establish effective payment system (Ritz, Wolf and McQuitty, 2019). In order to obtain this
benefit organization has decided to provide effective transactional methods. It comprises website
access for purchasing, registration on other modes of channel for shopping, etc. There are several
other issues also that has made company to realize need for this pattern of dealing with targeted
customers. Enterprise has received more opportunities of platform for serving after being with
Cooperative Group Limited. With respect to this, many more new locations has been served as
for targeting new market places that is increasing revenue with pace of speed. To have cover
greater customer base using online transaction mode in current scenario would provide these
benefits and drawbacks to company:
Merits
 The crucial benefit that institution can get through this method is increased sales. It
allows customers to buy at feasibility by just clicking a button rather than waiting in

queue for longer duration. In case of traditional mode of buying clients used to back step
in times of rushes to another stores for saving their time and energy.
 Enhancement of speed and convenience to both the parties involved in business activities.
Company can get the biggest benefit of obtaining products or raw material from those
suppliers who do not allow credits system in turn payment through online mode can be
done easily (Lewrick, Link and Leifer, 2018). Additionally, fear of stoling cash by other
parties and not supplying resources can be avoided via electronic payment.
 Reduction of transaction cost is also derived with help of electronic transaction (7
Benefits of Electronic Payment, 2021). Swiping card for even shorter amount does not
cost to customers so encourages them for impulse buying.
 Online rental market places as well tend to enhance customers interaction with company.
It influences buyers perceptions for brand as they tend to assume company is providing
better qualitative products (Shahri and et.al., 2020.). The present scenario of pandemic
has made people forced for adapting digital world so that protection can be achieved. Knowledge of competition through studying similar operating firm's marketing and
promotional strategies via their presence on business based platform. It will allow NRL to
get details of offers and pricing methodologies adopted by business so that improvements
can be made in current procedure of establishment.
Demerits
 There are government rules and models have been established for avoiding fraudulent
activities. Current generation has found so many loop hole for conducting inappropriate
practices. Inadequate authentication also plays role in e-payment system. Hacking and o
similar operating firm obtaining private details of persons with fooling clients is one of
the reason that stops public from being involved with firm.
 If any employee of organization uses companies system without getting authentication. It
can be identified by Nisa Retail limited through checking its bank statement. With respect
to this, there are many cases in which professional hackers perform huge in corrective
action that impact company's financial growth and development. This tends to affect its
reputation as well due to dispute transactions of cybercriminals.
 Increased operational cost as organization need to protect personal information into
computers for further references (Schwertner, 2017). In caes of misuse of these data firm

need to bear expense for protection for by spending on procuring, installing, controlling
related commerce safety application.
 Technical problems and inconvenient offline sales is another reason that increases cost of
business. Nisa Retail Limited may require additional cost for showing its presence on
new platforms to cope up with changing preferences regarding social media platform.
Evaluating new digital business model to deal with context of organization issues
There are various types of approaches that business utilizes with the purpose for
achieving business objectives and goal. The main aim of firm is to maximize profitability and
sales. The digital business model assures that company's product and services tend to serve
expected level of customers satisfaction (Shaytura and et.al., 2017). This plays crucial role in
attaining organizational goals in effective manner. There are several types of model that can be
used by organization in terms of managing its customers activity which includes free,
experience, subscription, etc. model.
The issues that are sever as barrier for growth and development of organizations are
security concern, fraudulent activities, technical and network barriers, competition, exploding
data, monitoring performance, changing customer preferences, poor analytics etc. Approach
should be selected for solving key issues in effectual pattern so that competitive advantages can
be derived (Arrigo, 2021). The suitable approach for NRL would be subscription model. It will
assist organization to tackle with these problems in approach appropriate manner.
Framework is considered to be right for Nisa Retail Limited as it will get access to those
people only who are actually interested in these products and service. Marketing and promotional
activities can formed according to target audience. In such approaches cost is decided according
to per click of customers. Specified efforts attract more clients as they tend to pay for specialized
services.
There are several ways through subscription model can be identified as suitable for
concerned organization. With respect to this, it aids company to provide flexibility to customers
for discontinuing which saves a part firm's cost in longer duration (9 keys for building successful
superscription business model, 2021). It results in lower retention speed as buyers prefer to but
from you monthly subscription rather than going to another platform. This e-commerce model is
makes retargeting, direct email, etc. in turn provide personal connection with subscribers
(Komljenovic, 2021). With respect to customized services can be provided by organization

which makes trustworthy and belongingness atmosphere in perception of buyers that increases
sales.
Theft of personal information is little as there is low number of people using the platform.
It is specially built by organization by encrypting basic and confidential data of payment. The
problem of security is dealt by providing subscription proof to NRL subscriber. For this purpose,
company assures to charge high margin as there is no fear of miss use and management of
important data. Increased sales can be obtained through more profit generating ability by making
services customized Reduction of competition can be predicted by various analytical services
offered through this approach (Agarwal and et.al., 2021). This analytical services provide
opportunity to company for identifying, evaluating and comparing past sales performance with
present scenario. Estimating prices for subscription of channel can be exerted with help of
available information. It reduces extra cost of enterprise in case of unseasonal times and
increases revenue in peak stages. In addition to this, company value also enhances by increased
reputation among segmental target base of audience.
Attracting customers by offering discount through personalized mail enables organization
to have sufficient number of target customers. It outcome in obtaining better attaining of
customers by offering them option of group based purchasing of retail items by changing market
pricing strategies for getting better productivity from this platform. Firm also permits clients to
provide feedback for the products and services that have utilized. This gives improvement
opportunities to business so that issues of clients can also be soled with speed and convenient
method. This e-commerce model makes atmosphere of family as they are getting connected by
making transaction from particular platform that enhances scope of generating revenue. These
are ways that provide assistance to organization in dealing with key business problems.
Evaluating impact of new collaborative relationship and strategic alliance trough digital
technology
It refers to aligning company's operations with other firm so that outcome can be
achieved in positive style. Strategic alliance is concerned with getting into agreement for
fulfilment of specific objectives (Reuschke and Mason 2020). There are various methods that
developing organization adopt for obtaining desire position in industry. Retail sector is
contributing good share in economic development and growth. In current scenario, competition
has arrived to peak level where attaining, retaining skills, knowledge and experience becomes

essential for firm. The NRL can make collaborative relationship with IT firm so that more digital
benefits can be obtained. It is refereed as digital partnership in which non technological
organization tie up with experienced digital firm. With respect to this, strategic alliance brings
new capabilities to cover market, high profit margins, innovation, competing against strong
companies, etc.
With help of technological advantages company assures that risk is also shared equally or
according to agreed terms. It increases firm own added value and decreases competitors placed
worth. Tangible as well intangible resource are gained with strategic alliance that can enhance
company's growth. Nisa Retail limited can acquire technological access from It firm to increase
its sales with speed and flexibility (10 ways your firm can benefit from a strategic alliance,
2016 ). This tends to identify market places and customers with greater speed & ease which is
not solely possible for firm. Digital partner ensures that solutions are effective, monitoring and
maintaining upgrading system. This impact can be considered as positive for progress of
organization.
The assistance in developing innovative product decisions can be taken by organization
by maintaining collaborative relationship with e-commerce firm. Inclination of sales will
increase profit as fixed & variable cost will be shared by firms. In order to gain resources that are
not possible for NRL on independent basis can be derived through this mode of relationship
(Klakegg, Pollack and Crawford, 2021). Nisa Retail Limited can get greater efficiency in its
productivity of employees as expertise training & development programs will become possible
for NRL. This is the best method for getting large distribution channel. Large multinational
organization usually have more market share than normal developing firm so aligning with
specified IT company provides merits. It comprises low marketing, promotion, branding cost &
less research and development expenses for arriving at business based platforms (Malik and
Brem, 2021). Enhancement of goodwill due to more availability of financial, technical, and
operational efficient resources.
Up-gradation of better creditworthiness with access of improved financial position. This
permits organization to gain risk bearing capacity for launching new product line, market mix,
etc. the main aim of any type of organization in involving into digital collaborate relationship is
gaining new client base, entering new business territories, levelling industry up, reducing risk,
competitive attributes, building valuable intellectual capital, etc.

NRL will be in position after doing strategic alliance with IT firm is to reach objectives in
faster and efficient patter. The quality of its groceries can be improved with usage of advanced
technologies as it will also provide declination of cost of production of products (Lafeuillade
and et.al., 2021). The interlink with this organization will make possible for company to get
away from import & export barriers. Digital assistance makes sure that every activity of business
procedure is conducted with advanced pattern so that defects and misappropriation can be
neglected. Expand networking competitive benefit is derived with collaborative connection so
that broaden platform reduces political conflicts that's the biggest vulnerable practice.
Large IT organization has secure data storing technology, higher production generating
device, competitive marketing and promotional strategies, larger market share, effective
communication channel, positive brand awareness, qualitative products and services, financial
assistance, global market access, etc. Nisa Retail limited will get all these merits with digital
assistance of It organization.
Usage of E-commerce principles
E-commerce sector is growing with rapid speed as following each principle becomes
essential for companies success.
Emphasis on security
The most important principle of electronic commencer is ensuring safety of users. While
arriving at landing page of company's website or any other business based platform customers
are asked to provide some basic personal information. NRL should consist effective encrypted
computer system that comprise all data in the safest manner so that no problem is severed to
clients. Payment gateway should as well be secure in terms of monetary transactions.
Users Friendliness
making website understandable by targeted audience without utilizing higher technical
terms and methodologies which will result in more access to program (XU and CHENG, 2021).
Nisa Retail Limited should adopt effectual pattern for representing its products and service. The
customers tend to avoid those online stores that are too complicated and takes much time for
loading information. Providing require data regarding shown products become necessary part of
business.
Distinct design factors

Having uniqueness in procedure is crucial for winning competition against online rivals.
Formulating with bold and innovative elements so that customers can remember online store
while having need of that particular commodity. The purpose of visiting site by users can be
fulfilled by crating suitable through implementation of eye-catching course of action. Getting
consultation from experience person provides better outcome in form of increased sales,
customer base., etc.
Adding search Column
Providing ease in finding required commodity is one of the most important principle of e-
commerce. It not only saves time but also give good impression on buyers regarding business
practices. This will result in good reputation of NRL regarding concern about customers
convenience.
Effective product description
In retail sector there is easy entry of new rivals so making customers aware about your
product quality and features becomes important. It can be exerted through mentioning every
commodities' description by giving detailed information about quantity, price, quality, variety
and many more. The mentioned firm need to comply with this principle of e-commerce while
digitalizing its business practices. It makes clients clear about the price which they are asked to
pay in turn leads to transparent transaction.
Responsive Technology
The scale of organization does not matter while showing details of products. Taking more
time in loading & blur image of goods in turn outcompete in reduction of repetitive buying
practice of customers with NRL. Moreover, responsive technology refers to utilization of that
pattern that provide access in phones, laptop and other devices in proper manner with appropriate
accessing duration.
Minimalist Layout
Removing irrelevant elements and making procedure simplest refereed as Minimalist
layout. Careful selection of logo, colours, images that does not harm any nation's belief, values,
behaviour, etc. Deciding appropriate factors are important trait of digital platform. It is easy &
faster to implement such layout as compared to other patterns. Nisa retail limited should utilize
this structure of website or business platform layout to ensure that business practices appropriate.
Efficient Call To Action

Goal of all business practices is to enhance the conversion rate and generating more
revenue. Objective of creating this is to meeting clients' requirements in the best manner. NRL
aims to set the platform which can improve call conversion rate effectively (Turban and et.al.,
2018). CTA can be attained through being creative, utilization of proper keywords, retargeting in
case person has stopped while continuing placing an order, practices for enthusing emotions of
customers and many more. This can boost sales in stressful and fast paced scenarios.
Consisting Branding
Following values, colours and other elements that define company's brand which will
help buyers to distinct firm from other prevailing organization in market (Bulturbayevich and
Jurayevich, 2020). Utilization of animation, graphics, descriptive texts, CTA, etc. can easily grab
attention of clients. In addition to this, it helps to build strong Customer Relationship
Management (CRM) strategy that is crucial for achieving loyalty, commitment, engagement in
turn suitable course of action can be exerted.
RECOMMENDATION
 Installation of Secure Sockets Layer (SSL) assist company to have protocol on website
which aids it to transfer data in an encrypted form. This can save Nisa from hackers &
build strong CRM that can be implemented in order to obtain enhanced conversion rate.
 Providing information related to importance of authentication to employees and penalty
for not compliance with rule & regulations formed can be done through establishing
training and development programs. Alerting workers regarding their personal
development with adoption of digital practices removes resistance human tendency for
change.
 Evaluation of customers preference via survey and other modes related to suitable
business based platform. With respect to this cost of operating on non-productive sources
can be reduced (Goolsbee and Klenow, 2018). Increasing use of effective search engine
can optimize promotional and marketing plans.
 Being directional, analysing market share, gaining competitive advantages, obtaining
integration, ensuring enough budget, avoiding duplication, search engine maximization,
etc. can avoid all kinds of digital marketing business issues.
 Synthesizing with credit card companies, banks can provide more trustworthiness
practice's among customers. It also helps in educating clients regarding ethical practices

related with digital payment structure of organization. Avoiding redirections refers to not
asking for much personal information brings more convenience in payment procedure.
CONCLUSION
From the above report it can be concluded that digital business practices helps company
to achieve desire outcomes in effectual pattern. The present report has shown advantages and
disadvantages of digital payment system and e-commerce practices in Nisa Retail Limited. It's
benefits involves enhanced sales, reduction of operating, etc. along with challenges such as threat
of security, technical issues. Case study has utilized subscription model for overcoming digital
business issues which in turn aid organization to optimize its available resource. Collaborative
relationship and strategic alliance that present report represents is with IT company that serves
various opportunities for obtaining progress in competitive world. The e-commerce principle that
current report has mentioned are responsive technology, efficient CTA, etc.

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