Introduction

Digital business creates innovative models of business through integrating both physical
and digital worlds to create strategic opportunities and generate value in customer
service, sales, production, marketing, and all other operations of the organisation
(Chaffey, Edmundson-Bird, and Hemphill, 2019). The report will discuss about the
cornerstone of digital companies, differentiate between digital and traditional business
designs, and the forces that uplifted the metamorphosis of traditional organisations into
digital organisations. This report is based on the digital business named Lendable Ltd.
which is a super fast lending company founded in 2014 by Martin Kissinger and Van
Lennep for eliminating the traditional bureaucracy in the lending application system in
the United Kingdom (Lendable.co.uk, 2020). This report will address the core
operations, digital business design of Lendable Ltd., their market segmentation, crucial
factors that speed-up the rise of Lendable Ltd and also the macro forces that might
affect the activities of the company will be investigated in detail.

Digital Business

Digital business is the development of innovative business models that bind both
companies and individuals and also link individuals and companies with superior IT that
increase productivity and revenue. In order to be successful, maintain competitive edge,
and gain profit growth, the new digital world demands all corporations to be converted
into digital companies, because today's customers are increasingly connected to digital
technology and networks and are also searching for solutions by just touching the
screen of their smartphones (Montealegre and Iyengar, 2020). No enterprise can now
dream of succeeding and flourishing without a credible digital footprint and not
connecting to their consumers across digital social networks.

Comparison Between the Traditional and Digital Business Models

Traditional corporations must require a physical life to serve the clients by real

time contact, while digital corporations do not require a physical existence  or shop to
serve the clients, but digital corporations may or may not have a coworking space
according to their company requirements. In order to draw possible customers digital
companies do not require a physical space or shop, but traditional corporations face
way more overhead expenses as they have to position their business in a good area
and so the overhead expenses of digital enterprises are way smaller than traditional
firms. Digital firms strive to build a broad customer base of satisfied clients  by
concentrating intensely on convenience by delivering services as consumers stay at
their residents. Traditional organisations do not supply their clients at houses with
home services and their happy client base is also declining as individuals staying in the
comfort-zone of their residents become more addicted to buying products and services
by staying at their residents or workplace (Chaffey, Edmundson-Bird, and Hemphill,
2019). Digital firms supply their clients  with amenities and timely services, but
conventional corporations are far ahead of digital firms in terms of trust and reliability so
far but digital firms are resolving this issue gradually.

The Variables That Promoted the Uplift of Digital Businesses

The Covid-19 outbreak has significantly improved the viability and growth of digital
firms because consumers can't and don't like to go outside to purchase items or to get
services, but are more inclined to purchase commodities  and services from digital firms
via using digital methods. , Many other factors have recently aided in boosting the
development of digital firms, such as the advent of the digital age, mobile dependence,
digital transformation, emerging technologies, continuous innovation, dynamic global
environment, increased competition, digital business climate, the growth of social
networks, the attachment of customers to online shopping, the current technological
revolution, etc. (Montealegre and Iyengar, 2020).
Identifying and Expounding the Macro Factors That Might Influence
the Activities of Lendable Ltd

Large or small, public or private, sole or proprietorship, no matter what type business it
is every company including Lendable Ltd. is influenced by the external macro factors of
the broad business climate in which the company operates. Such factors cannot be
regulated by the company and they can be political, legal, ethical, technological, social,
economic, etc. Lendable Ltd. should identify the macro forces and assess their likely
impact on the company so that they can be aware of those factors to mitigate risks and
take advantage of opportunities. The main crucial macro variables of Lendable Ltd. are
explained below.

Figure: Crucial External Variables Impacting Lendable Ltd.

Source: (Author Design)

Economic: Lendable Ltd. should be concerned about important economic variables like
interest rates, GDP growth, inflation rate, exchange rates, etcetera as they are a lending
company and these prominent economic factors will influence their activities greatly.
The economy of the UK faced a growth rate of 15.5% in Q3 of 2020 despite the
catastrophe created by the Covid-19 outbreak (Smith, 2020). This rapid growth means
more businesses will flourish and new companies will emerge who will need more loans
and boost the revenue of Lendable Ltd.

Political: The activities of Lendable Ltd. will be influenced by the present political
situation of the United Kingdom and the factors that are shaping the political
environment like political stability, trade regulations, corporate tax, digital sales tax, etc.
From April 1, 2020, the UK government introduced a 2% tax on digital sales and this tax
will negatively affect the profitability of Lendable Ltd. as the company will have to pay
2% additional tax (Hern, 2020).

Technological: The present world is undergoing a technological revolution as

innovative technologies and business models are emerging rapidly and also customers
are becoming more depended on technology (Chaffey, Edmundson-Bird, and Hemphill,
2019). However, Lendable Ltd is utilising the full of information technology and they
should also be concerned about disruptive technologies and focus on personalisation,
automation, and R&D to come up with latest models and techniques. If they neglect
disruptive technologies they might make a large investment on a system that will
become obsolete in a few years.

Social: Customers are now becoming more drawn to internet purchases by relaxing on
their sofa and receiving all sorts of services by digital means. Their tastes are shifting
and for digital firms such as Lendable Ltd. it's a promising indicator because such a shift
in customer preferences would lead to further profits for them.

Ethical: For digital firms such as Lendable Ltd., this is perhaps the most significant
variable for tackling the bad image of digital firms when it comes to trust and reliability.
Trust problems are a huge obstacle to digital enterprises, and by maintaining ethics,
they can resolve this insurmountable barrier Montealegre and Iyengar, 2020). Lendable
Ltd should never use their customers' information or sell that information to other
businesses. In order to sustain and prosper for a long period, ethical issues must be
placed at the forefront of all Lendable's activities.
Legal: Antitrust legislation, bank reserve policies, copyright and patent laws,
employment laws, consumer protection policies, and so forth, may be unique legal
factors that will affect the actions of Lendable Ltd. According to UK wage law, the firm
must pay a minimum wage of £ 8.72 per hour and it must comply strictly with antitrust
laws, bank reserve policies, and consumer protection laws that will influence its
operations.

Conclusion
In order to succeed in the present competitive market climate that is powered by
technology, digital companies are taking over the existing corporate world and the
movement towards the conversion of conventional companies into digital companies is
currently happening at a growing pace. The core concepts of digital business, the gap
between traditional businesses and digital businesses, drivers behind the adoption of
digital businesses, as well as the digital system of Lendable Ltd., that is a peer-to-peer
system, its market dynamics, and the variables that contributed to the expansion of
Lendable Ltd., and the macro environmental factors that affect the business, were
explained in detail throughout this paper. Paperless delivery, ethics, convenience,
responsiveness, reliability, instant payment, superior customer experience etc. are
crucial for Lendable Ltd to retain competitive edge. Macro variables like shifting
customer taste, digital sales tax, technology dependency, rapid economic growth,
ethics, continuous innovation, etc. are significant for Lendable Ltd to become
successful. Lendable Ltd. is a very promising digital lending company which will
continue to expand by concentrating on the factors defined in this report to reduce risks
and take advantage of opportunities.
References
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-
commerce management. Pearson UK.

Montealegre, R. and Iyengar, K., 2020. Managing digital business platforms: A

continued exercise in balancing renewal and refinement. Business Horizons,.

Hern, A., 2020. UK To Impose Digital Sales Tax Despite Risk Of Souring US Trade
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<https://www.theguardian.com/media/2020/mar/11/uk-to-impose-digital-sales-tax-
despite-risk-of-souring-us-trade-talks> [Accessed 7 December 2020].

Smith, E., 2020. [online] Available at: <https://www.cnbc.com/2020/11/12/uk-gdp-

q3.html> [Accessed 7 December 2020].

Lendable.co.uk. 2020. Fast Loans At Fair Rates. [online] Available at:

<https://www.lendable.co.uk/frequently-asked-questions> [Accessed 7 December
2020].