Digital Business | BA in Business Assignment (GC01817)

Abstract

Because Brexit issues and the current pandemic situation of Covid-19 have created a trade war increase product prices and caused the movement of skilled workers to slow down in the UK labor market. Thus, Asos has needed to think of alternatives to promote its products and hiring people from the local and international labor markets. Additionally, it needs to consider both the UK and global political and economic conditions in developing its business strategies. Emerging digital business models improve the value proposition of a business that creates three key dimensions: value chain, product/service, and customer. One of the key emerging digital business models is Business Model Canvas. Information security threats and ethics are considered as one of the foremost topics of concern among industry practitioners and business experts. However, information security threats and ethics face several challenges. Asos has been able to develop an effective business and operating business model to understand the changing needs and buying behavior of its customers.

Table of Contents

Abstract

1.0      Introduction.

2.0      Virtual business and impact of technology on businesses.

2.1 Define virtual business in the context global environment

2.2 Key trends, advantages and disadvantages of managing the virtual business in the global environment

2.3 How technologies affect businesses such as ASOS, Birchbox.

ASOS.

Birchbox.

3.0      Situation and SWOT analysis, and situation analysis for Asos business.

3.1 Situation and SWOT analysis.

3.2 Situation analysis for Asos focusing on its personalization.

4.0 Emerging digital business models and challenges associated with information security threats and ethics

4.1 Emerging digital business models.

4.2 Information security threat and ethics and their challenges.

4.3 Emerging digital business models and challenges for information security threats and ethics in Asos

5.0 New collaborative relationship and strategic alliance through digital technology for implementing personalization.

5.1 New collaborative relationships and strategic alliances and their importance in the implementation of digital personalization.

5.2 Real examples of new collaborative relationships, strategic alliances through digital technology for implementing personalization in Asos.

6.0 Digital business and e-commerce.

6.2 Digital business and e-commerce and their contrast and comparison.

6.2 Outline e-commerce principles and discuss their potential application to digital business.

6.3 Case studies example of application of eCommerce principles in Asos business.

7.0 Conclusion.

References.

1.0  Introduction

Technology is now playing a significant role in the way of business success in the current business world. The concepts of virtual business, digital business, eCommerce business are now increasing day by day due to the advancement of innovative and modern technologies. This paper first gives an overview of virtual business in a global context, and the impact of technologies on businesses. Then, this paper compares situation analysis with the SWOT analysis with the application of situational analysis in business. Next, this paper discusses emerging business models, strategic alliances, and collaborative relationships. Finally, this paper discusses and compares and contrasts digital business and e-commerce.

2.0  Virtual business and impact of technology on businesses

2.1 Define virtual business in the context global environment

Virtual business refers to digital capabilities by scaling back its physical presence. A virtual business global context shows to work online but retains several levels of physical operation.  One of the key examples of a virtual business is all staffs work virtually but the headquarter can be anywhere across the world where its CEO lives. The other example can be where staff work in a headquarter that has a warehouse for packaging and shipping of products for the customers. The current move of globalization and growing global economies are now creating more places for forming virtual businesses by attracting consultants, entrepreneurs, and academics.  The virtual business has now been fundamental to develop new enterprises in the global business environment (Neifield, 2018).

2.2 Key trends, advantages and disadvantages of managing the virtual business in the global environment

According to Chaffey et al. (2019), seven key trends are seen in the current virtual business world. These trends are virtual office design promotes several kinds of works, more people are moving towards digital nomads than ever before, remote work is rising, using virtual office promoting to start a new business, advancement in the use of live receptionist service, and co-working virtual office. There are advantages to managing a virtual business. First, this business concept reduces overall overhead costs. Secondly, the virtual business is able to satisfy its workers more than physical business. Thirdly, virtual businesses are highly scalable. This means staff in physical business are highly required to move into a bigger office space. However, with a virtual team, a business can scale up its business without wondering about office space needed. On the other hand, virtual businesses have some demerits. Virtual businesses are less cohesive, have a lack of camaraderie, and have a high risk of reputation and security and compliance issues.

2.3 How technologies affect businesses such as ASOS, Birchbox

ASOS

Technology plays a significant role in the success of Asos’ business. The online shopping experience of Asos improves sizing assistance to its customers. Asos customers can determine sizing before on selected item using its website but after coming to its app now customers can ensure more informed purchase. This is because this app uses artificial intelligence (AI). This technology now helps Asos to address a common flaw with online shopping and helps the customer to determine the right size without trying an item on. Asos has given its new sizing tool as “Fit assistance”. This “Fit Assistance” is also powered by other technology called Fit Analytics that uses a platform using a database of purchase histories and product information (Turk, 2018). Asos is also using sophisticated warehouse technology to offer customers more access to its ever-expanding inventory, popular brands, and attractive design of products (Plcard, 2019).

Birchbox

Birchbox is also using several wonderful technologies to attract its customers. It is using machine learning in the case of personalization and recommendation algorithms. The aim of this technology is to predict the customer purchase intention and send them an email including products details information. This technology also helps to personalize the online site experience for every single customer. Data scientist directly works along with product development teams to improve these algorithms and balance number of data points processed in the algorithms. However, Birchbox recognizes this machine learning technology is not always perfect. That is why it suggests its customers choose at least one sample and ask to see profile information to improve data points (Digital Initiative, 2018). Birchbox uses other technologies including social media to offer its customers personalized service (McDonald, 2020).

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