Digital Business Report: Analysis of Birchbox's Virtual Operations

This report provides a comprehensive analysis of Birchbox, a digital business specializing in online subscription services for beauty products. It explores the concept of virtual businesses, detailing their advantages, disadvantages, key trends like AI and IoT, and their impact on the global environment. The report includes a SWOT analysis of Birchbox, examining its strengths, weaknesses, opportunities, and threats. It also discusses the importance of strategic bonds and new collaborative relationships facilitated by digital technology. Furthermore, the report compares e-commerce and digital business principles, and addresses associated challenges related to information security and ethics. The analysis is supported by references to academic journals and books, offering a well-rounded perspective on Birchbox's operations and its place in the digital business landscape.

DIGITAL
BUSINESSES

INTRODUCTION
Digital business create design new business by fading the physical and digital world. In
this business they use various techniques and new technology to add on new value in businesses
framework, internal abilities and experience of customers that assist its set operations. The below
report is based on Brichbox, this company based on make-up brand, founded in 2010, in new
york city, U.S. They provide monthly online subscription services, company send a box of four
or six sample products of make-up or beauty products to its subscribers. They have various
products such as; cosmetics, perfumes, skin care products, organic products and many more. The
below report include; about virtual business, their advantages, disadvantages, impact, trends and
significance on global environment bye using virtual businesses concept. Analyse the strength,
weakness, opportunity and threat in organisation and also discussion about emerging business
model or associated challenges with information security ethics and threat. Importance of
strategic bond and new collaborative relationship with the help of digital technology for
individualise improvement. Comparison of e- commerce and digital business, e- commerce
principles and how they affect digital business.
MAIN BODY
LO1. Discuss the advantages, key trends, disadvantages managing virtual business in the global
environment, significance and their impact
Virtual business refers to the conduct any business activities through internet. It not have
physical presence employees such as an workplace and employees no need to visit any physical
location. This business focus on digital abilities, measure the physical presence but they cannot
do any physical work through digitally.
Key trends: This refer to the making market clear, continuous move downward and upward it
means trends and key trends means identifying the starting and trends' end is key part in market.
The key trends include Artificial intelligence, Internet on things, block-chains, Argument reality,
experience of users, Drones and voice search.
Advantages: virtual business provide benefits to company such as; improvement in employees
satisfaction, improved their efficiency, improvement in actual growth and scalability, Access
new markets, improvement in employees retention and larger talent pool. These advantages helps
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to global environment in right manner such as it helps in increasing country growth also.
Increase brand value in whole market in different cities and customers are satisfied with brand so
it helps in profitability.
Significance: In company virtual business provide positive significance to global environment
such as, in economy of country it helps in increasing GDP rate, because Brichbox cover
maximum area for providing their quality services and products. In country their political factor
are stable so it is easy to run business in different locations and reach out customers in maximum
numbers. In current scenario customer’s needs and expectations are change regularly. In
Brichbox context, they have various products according to trends in markets, their main focus on
customer's satisfactions . Brand target youth mostly and they cover maximum areas and various
digital platforms also, it helps in increasing sales of business and provide quality services and
products to it gives positive impact on customers.
Impact: Virtual business impact on global environment in positive manner. In Brichbox context,
they produce organic products like skin care, cosmetic and so on, so it is not harm to
environment and it is positive impact on global environment. This business is totally based on
technology, In present days technology grow very fast business adopt new and latest tools and
techniques for effective work and growth of organisation.
Disadvantages: In organisation virtual business give disadvantages also such as; Reputation-al
risks, Need to focus on communication, Lack of sociability, cooperation and security issues. In
Brichbox context, there is also disadvantage of virtual business, such as in this risk are involve
like customer receive defective product or any thing else issue, it give wrong image to customer.
LO2. SWOT Analysis on Brichbox
SWOT Analysis observe the strength, weakness, opportunity and threats of organisation
which impact their growth in both aspect positive as well as in negative.
Strength: It refers to the provide benefits to organisation. In Brichbox context,
Weakness: It refers to provide disadvantage to company which affect the growth of business. In
Brichbox context,
Opportunities: It refers to provide advantages to company which helps in increasing their brand
value and productivity. In Brichbox context,
Threats: It refers to the drawbacks that affect the growth of business. In Brichbox context,
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Porter's five forces
Competition in industry:
Potential of new entrants into the industry:
Power of suppliers:
Power of customers:
Threat of substitute products:
References:
Books and Journals
Kumar, S., 2005. Exploratory analysis of global cosmetic industry: major players, technology and market
trends. Technovation, 25(11), pp.1263-1272.
Yang, K.F., Yang, H.W., Chen, Y.Y. and Fan, C.C., 2019, August. Research on the Service Quality,
Customer Satisfaction, Customer Loyalty in the Cosmetics Industry: Taking LANEIGE as an
Example. In Proceedings of the 2019 3rd International Conference on E-Society, E-Education
and E-Technology (pp. 32-37).
Sharma, V. and Kalra, R., 2020. Study of Impact of Social Media on the Buying Behavior of the
Consumers in Cosmetics Industry. International Journal of Business Management Insight &
Transformations [ISSN: 2581-4176 (online)], 4(1).
Spironelli, C., 2019. Cosmetics industry: an analysis of marketing and mass communication strategies.
Teixeira, T.S. and Piechota, G., 2019. Unlocking the customer value chain: How decoupling drives
consumer disruption. Currency.
Chang, Y., 2017. As K-Beauty Matures, Iope Air Cushion Foundation Comes to the US (Doctoral
dissertation, University of Southern California).
Harala, H., 2016. How to make a business visible online: Online visibility plan for a start-up x.
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