Digital Business Activity

DIGITAL BUSINESS ACTIVITY 4

Question1: A Description of the Digital Business Company (Amazon) includingthe Type of Business it is in, its Size, and its Headquarter

Digital businesses refers the use of digital technology to not onlyenhance the delivery of products and services but also expand thestrategic decisions of a business (Stevenson, 2014). One company thathas impressively applied digital business is the Amazon. Amazon isnot only America’s largest online retailer but also a globallyrenowned online retailer. as highlighted by Morabito (2016), eventhough the company has its headquarters in Seattle, Washington, theonline retail company operates across the globe in regions such asThe United Kingdom, France, Canada, Mexico, Italy, Ireland and therest of the world.

Establishedin the year 1994, the company started as an online bookstore, butsoon after diversified its products to include selling DVDs,audiobook downloads, MP3 downloads, video downloads, video games,jewelry, toys, electronics, furniture, and food. The online retailingcompany is also the globe’s leading provider of cloudinfrastructure services, besides selling various low-end goods,including USB cables.

Question2: How Amazon is using Digital Business and/or the Internet of Things

Morabito (2016) discloses that Amazon has been able to redefine theretail industry by employing the digital business strategy that waspromoted by the emergence of the internet. The company identified anumber of challenges that the traditional retailing industry had. Forinstance, traditional booksellers were burdened with not only thecost, but also the responsibility of investing on inventory,qualified staff, as well as a landed property for every retaillocation.

Question3:The Duration the Company has been involved with digital business

Twenty-oneyears since the company gotinvolved in the digital business,using the digital business strategy has provided the company asignificant competitive advantage, as it has capitalized oncentralized inventory management system as well as minimal occupancycosts.

Question4: What the Digital Business Company hopes to Achieve with thisEndeavor

Morabito (2016) argues that Amazon considers continued globalexpansion as a way of revamping its international e-commerceplatform, a factor that will make it easier to reach customers withinits new markets.

Question5: Whether the Company has had any failures in its endeavor, andwhether it is now successful

Despiteits effort to expand its global e-commerce platform, the company hashad to deal with difficulties that have challenged its competitivestrengths, competitive price in a few markets such as Japan(Gaughran, 2011). Even so,as Morabito (2016) confirms,the global retail company now places its focus on customer service, astrategy the company believes will help it improve its client base.Besides, it is also trying to derive other means of improving itscustomer base, including forming alliances so to enable it toflourish within the market. Overall, Amazon is undoubtedly an evidentwinner the digital business, with 2013 statistics indicating thatabout 20 percent of all traffic was created by new Amazon customers.

References

Gaughran,D. (2011).Amazon Faces Serious International Competition from Japan.Retrievedon the 16thJune 2016 from&lthttps://davidgaughran.wordpress.com/2011/11/09/amazon-faces-serious-international-competition-from-japan/&gt

Morabito,V. (2016).The Future of Digital Business Innovation: Trends andPractices. Berlin: Springer

Stevenson,J. (2014).‘‘What does it really mean to be a `digital business?”Information Age