Digital Transformation: Business Model Evaluation for Online Growth

This report delves into the challenges faced by online businesses in the era of digital transformation, particularly focusing on the shift in consumer expectations and the need for innovative business models. It analyzes the subscription-based business model, exemplified by companies like Amazon Prime and Netflix, as a solution to address issues such as high traffic and conversion rates. The report evaluates the effectiveness of the subscription model in both traditional and online contexts, highlighting its potential to increase profitability and productivity. Ultimately, it emphasizes the importance of adapting business strategies to meet the evolving demands of the digital landscape and enhance customer engagement in the global marketplace. This resource is available on Desklib, a platform offering a wealth of study tools and assignments for students.

Digital Transformation of Organizations
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Contents
Challenges faced by online business...........................................................................................3
Business model analysis..............................................................................................................3
Business model Evaluation..........................................................................................................4
REFERENCES................................................................................................................................5
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Challenges faced by online business
Online shopper do not want to shop same way as they were used to back. For example-
Amazon prime, Netflix. These are consider as an online video streaming business, which is
always inspire or motivate individual people. Generally, a person can use their smartphone to
read item reviews while in-store and pay for purchases by using sort of payment methods.
Sometimes, Online Video streaming businesses are faced a challenge regarding high traffic level.
Therefore, it may reduce the conversion rates ranging in between 1% to 3%, businesses are
putting more efforts in generating a better leads (Chanias, Myers and Hess, 2019). Consequently,
there might be gaps related to the selection of packages in video streaming that have remained
unaddressed.
As per resolution, businesses will be focused on the implementing subscription business
model. It should be categorized the different packages of content so that client can purchase or
subscribe accordingly. In this way, it is also building an email subscriber list as key long term
success. It allows individual to prospect better using online tool or platform.
Business model analysis
The subscription business model is type of approach in which a potential client must pay a
recurring price or cost at regular intervals. Therefore, it can easily access product services. This
kind of business model was pioneered by publishers of contents and now used by different online
businesses (Kurmann and Arpe, 2019). Analysing business model that can help to find whether a
venture is, or will be valuable as well as viable. It will help to increase revenue of online
businesses who will be using as subscription model.
As per analysis the Subscription business model which means that increases importance of
online organizations such as Amazon prime, Netflix. These are majorly used subscription
business model to increase profitability as well as productivity in global marketplace. in
particularly, The challenges faced by online video streaming business so that it will be
implementing Subscription business model to resolve problem or issue.
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Business model Evaluation
In context of digital transformation, A subscription business model can be applied in both
traditional brick-&-mortar, online businesses such as Online video streaming-“Netflix”
Essentially, as it explained in reference to Netflix, the potential consumer pays a recurring
payment on the monthly basis (Sousa and Rocha, 2019). That’s why, it should be considered as
digital transformation while providing the facilities of live video streaming option for potential
client. Netflix is a leading enterprise which is mainly used Subscription business model to attract
more and more customers in global marketplace.
With the help of subscription model, consumer may directly ship its product in the mail
and pay fee charges through app. On the basis of evaluation, it has been identified the importance
of Subscription business model which is not only increasing the profitable rate of organisation,
but it is also helping to earn a lot of money, gain more productivity across global world.
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REFERENCES
Book and Journals
Chanias, S., Myers, M.D. and Hess, T., 2019. Digital transformation strategy making in pre-
digital organizations: The case of a financial services provider. The Journal of Strategic
Information Systems. 28(1). pp.17-33.
Kurmann, P. and Arpe, B., 2019. Managing Digital Transformation-How organizations turn
digital transformation into business practices.
Sousa, M.J. and Rocha, Á., 2019. Digital learning: Developing skills for digital transformation of
organizations. Future Generation Computer Systems. 91. pp.327-334.
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