DISSERTATION ON DIGITALIZATION AND IT’S

EFFECTS ON INTERNATIONAL BUSINESS

DISSERTATION SUBMITTED TO
D.Y. PATIL UNIVERSITY SCHOOL OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE
OF BACHELORS OF BUSINESS ADMINISTRATION
Submitted by:
SHWETA ANIL PANDE
BBA020228

Research Guide:

Dr. Rashmi sreejit

(Associate professor)

D.Y. Patil Deemed to be University School of Management

CBD Belapur, Navi Mumbai.

2020-2023
 CERTIFICATE

This is to certify that the dissertation entitled “Digitalization and it’s effects on international
business” is the bonafide research work carried out by Ms Shweta pande student of Full
time BBA, at D.Y. Patil Deemed to be University School of Management during the year
2020-2023 in partial fulfillment of the requirements for the award of the Degree of
Bachelors in Business Management and that the dissertation has not formed the basis for
the award previously of any degree, diploma, associate ship, fellowship or any other similar
title.

Dr. Rashmi sreejit Dr. R. Gopal

Assistant professor Director & HOD

D.Y Patil Deemed to be D.Y patil Deemed to

be be

University School of University School of

of Management Management

2
 DECLARATION

I hereby declare that the dissertation “Digitalization and it’s effects on international
business” submitted for Full time BBA Degree at D.Y. Patil Deemed to be University School
of Management is my original work and the dissertation has not formed the basis for the
award of any degree, associate ship, fellowship or any other similar titles.

SIGNATURE OF THE STUDENT

PLACE: Navi Mumbai

Date:

3
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Dr. Rashmi sreejit , Assistant

professor, D.Y.Patil Deemed to be University School of Management for guiding me right
from the inception till the successful completion of the project. I would like to express my
special thanks of gratitude him who gave me the golden opportunity to do this wonderful
project which also helped me in doing a lot of research also take this opportunity to thank
my classmates who provided their valuable input for my project study and I even thank all
the participants of the survey which was conducted for the study without whom the study
would have been incomplete.

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 Contents

CHAPTER TITLE PAGE

NO NO
EXECUTIVE SUMMARY 8
1 INTRODUCTION 9
2 OBJECTIVE OF THE STUDY 12
3 REVIEW OF LITERATURE 14
4 DIGITALIZATION, INTERNATIONALIZATION AND 18
DIGITAL TRANSFORMATION
4.1 DIGITALIZATION 19
4.2 INTERNATIONALIZATION 20
4.3 DIGITAL TECHNOLOGIES IN BUSINESS 21
4.4 INTERNET OF THINGS 22

4.5 DIGITALIZATION VS DIGITIZATION VS DIGITAL 23

TRANSFORMATION

4.6 IMPORTANCE OF DIGITAL 26

TRANSFORMATION

5
 5 IMPACT OF DIGITALIZATION ON INTERNATIONAL 28
BUSINESS

6 HOW DIGITAL TRANSFORMATION EFFECTS 31

EMPLOYEES AND CONSUMERS
6.1 IMPACT OF DIGITAL TRANSFORMATION 32
7 DIGITAL TRADE AND BUSINESS 34

8 DIGITAL TRANSFORMATION AT AMAZON 42

9 FUTURE OF INTERNATIONAL BUSINESS 50

10 METHODOLOGY 53

11 DATA AND ANALYSIS 56

12 CONCLUSION 78

6
 EXECUTIVE SUMMARY

7
 EXECUTIVE SUMMARY

This study aims to study the impact of digitalization on international business

Nowadays the whole world is online and digital transformation of your business to keep up is very
important if you want a successful business

The study draws on primary data conducted by interviews and secondary data from academic
literature, web posts and online sources , with the results of this study we find that digitalization
has a huge impact on companies on the basis of responses from the customers of McDonalds in
this particular study, it can be inferred that

relatively to others Amazon received a favorable view from the responders and is mostly due to
their digital technologies .

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 CHAPTER ONE

1.INTRODUCTION

9
1.1 INTRODUCTION

Digitalization has transformed the way businesses operate globally, revolutionizing

international trade and commerce. With the advent of advanced technologies and digital
platforms, international businesses can now expand their reach and connect with customers
worldwide more efficiently and effectively than ever before. Digitalization has enabled
companies to streamline their operations, reduce costs, increase productivity, and improve
customer experiences.
One of the key advantages of digitalization in international business is that it has made cross-
border transactions faster and more secure. Digital payment systems and online platforms have
made it easier for businesses to conduct transactions across borders, eliminating the need for
physical documentation and reducing the risk of fraud. In addition, digitalization has also
made it possible for businesses to monitor and track their supply chains, ensuring that goods
and services are delivered on time and to the desired quality standards.
Another important benefit of digitalization is that it has made it easier for businesses to
communicate with their customers and suppliers. With digital platforms, businesses can now
connect with customers in real-time, providing them with personalized experiences and
addressing their needs and concerns promptly. This has helped to enhance customer loyalty
and improve overall customer satisfaction.
Overall, digitalization has had a profound impact on international business, enabling
companies to operate more efficiently and effectively in an increasingly globalized economy.
As businesses continue to adopt digital technologies and platforms, we can expect to see even
more innovative and transformative changes in the world of international business in the years
to come.
Digitalization has had a significant impact on international business, changing the way
companies operate and interact with customers and partners across the globe. The emergence
of digital platforms and technologies has enabled businesses to expand their operations beyond
national borders, opening up new opportunities for growth and innovation
One of the most significant advantages of digitalization in international business is the ability
to collect and analyze data on a global scale. Digital platforms enable businesses to track
customer behavior, preferences, and trends, allowing them to better understand the needs and
wants of their international customers. This, in turn, helps businesses tailor their products and

10
 services to meet the demands of specific markets, improving their competitiveness in the
global marketplace.
Digitalization has also made it easier for businesses to collaborate with partners and suppliers
across different countries and time zones. Online communication tools such as video
conferencing, chat, and email have made it possible for businesses to communicate and
collaborate in real-time, reducing the need for physical meetings and travel. This has led to
increased efficiency, reduced costs, and improved productivity.
In addition, digitalization has enabled businesses to automate many of their processes,
reducing the need for manual intervention and increasing accuracy and efficiency. Automation
of processes such as order processing, inventory management, and logistics has helped
businesses reduce lead times and improve customer satisfaction.

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 CHAPTER 2

AIMS OF THE STUDY

12
2.1 The aims of research are as follows:

 To know concept of digitalization in business

 How business is effected due to digitalization
 Impact of going digital on international business
 Digital technologies and their role in customer experience

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 CHAPTER 3

LITERATURE REVIEW

14
History

3.1 The industrial revolution and international business

Development and Evolution

The Industrial Revolution refers to a period of time in the late 18th and early 19th centuries when
there was a dramatic shift in the way goods were produced. This period was marked by the
invention of new technologies and machinery that enabled mass production, which in turn led to
significant economic, social, and cultural changes.

The Industrial Revolution began in Great Britain in the mid-1700s with the development of new
machines and technologies that transformed the textile industry. The steam engine, invented by
James Watt in the 1770s, provided a new source of power that could be used to operate machines
in factories. These innovations were quickly adopted by other industries, leading to the growth of
industrialization throughout Europe and North America. Factories began to spring up all over these
regions, and workers were employed to operate the new machines. The Industrial Revolution
brought about a shift from traditional, artisanal production methods to the mass production of
goods, which enabled products to be produced faster and more cheaply. This period had a profound
impact on society, bringing about significant changes in the way people lived and worked. The
growth of factories led to a migration of workers from rural areas to urban centers, which in turn
led to the growth of cities. The rise of industrialization also brought about the growth of the middle
class, as entrepreneurs and inventors amassed significant wealth from their innovations.

The Industrial Revolution had a significant impact on international business. One of the major
effects was that it made it easier to transport goods and communicate with people in other parts of
the world. This led to the expansion of trade and the growth of multinational corporations.

15
In the early stages of the Industrial Revolution, most manufacturing took place in Britain, which
had a significant advantage in terms of technology and resources. However, other countries soon
began to catch up, and by the mid-19th century, Germany, France, and the United States had
become major industrial powers.

The growth of international trade during this period was driven by a number of factors. One was
the availability of raw materials, particularly in the colonies of European powers. This led to the
establishment of trading relationships between different countries, as companies sought to secure
access to these resources.

Another factor was the growth of consumer markets. As more people began to earn higher wages,
they had more disposable income to spend on goods. This created opportunities for companies to
sell their products in new markets, both at home and abroad.

Overall, the Industrial Revolution had a profound impact on international business, paving the way
for the globalization of trade and the rise of multinational corporations. It also had far-reaching
social and economic consequences, transforming the way people worked, lived, and interacted with
each other.

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3.2 HISTORY OF AMAZON

Amazon's digitalization history is a story of innovation and transformation.

 The Birth of Amazon.com - In 1994, Jeff Bezos founded Amazon.com, a website that sold
books online. This was the first step in Amazon's journey towards becoming a digital giant.
 The Expansion of Product Offerings - Amazon quickly expanded its product offerings
beyond books to include music, movies, and electronics. This helped to attract a broader
customer base and set the stage for further growth.
 Personalized Recommendations - Amazon was one of the first companies to offer
personalized recommendations to its customers. This feature, which is still a hallmark of
the Amazon experience, helped to build customer loyalty and drive sales.
 Amazon Prime - In 2005, Amazon launched its Prime program, which offers free two-day
shipping on eligible items, along with access to streaming video, music, and other perks.
This helped to solidify Amazon's position as a leader in online retail.
 Cloud Computing Services - In 2006, Amazon launched Amazon Web Services (AWS), a
AWS has become one of Amazon's most profitable and fastest-growing businesses.

 Amazon Kindle - In 2007, Amazon launched the Kindle, an e-reader that allowed users to
download and read digital books. The Kindle helped to revolutionize the publishing
industry and established Amazon as a major player in the world of digital content.

 (Alexa ) the Internet of Things - In 2014, Amazon launched Alexa, a voice-activated virtual
assistant that can control smart home devices and perform a variety of tasks. This marked
Amazon's entry into the world of the Internet of Things (IoT), and paved the way for
further innovation in this space.

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 CHAPTER 4

18
 DIGITALIZATION , INTERNATIONALIZATION
AND DIGITAL TRANSFORMATION

4.1 digitalization

In business, digitalization refers to the use of digital technologies to transform traditional business
processes, models, and strategies. This involves the integration of digital technologies into all
aspects of business operations, from marketing and sales to supply chain management and
customer service.

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Digitalization has revolutionized the way businesses operate, efficient, and responsive to customer
needs. It has also created new business models and revenue streams, enabling businesses to stay
competitive in an increasingly digital world .Some examples of digitalization in business include:

 E-commerce - Online shopping has become a ubiquitous part of the retail landscape, and
businesses that have embraced e-commerce have been able to reach new customers and
expand their sales channels.
 Digital Marketing - Digital technologies have enabled businesses to target their marketing
efforts more effectively, using data analytics to understand customer behavior and
preferences.
 Supply Chain Management - Digitalization has enabled businesses to streamline their
supply chain operations, improving efficiency and reducing costs.
 Customer Service - Digital technologies have made it easier for businesses to interact with
their customers, providing real-time support and feedback through digital channels such as
chatbots, social media, and email.

4.2 Internationalization

Internationalization in business refers to the process of expanding a company's operations beyond

its domestic market and into foreign markets. This may involve exporting products or services to

20
other countries, setting up foreign subsidiaries or joint ventures, or establishing a global supply
chain.

Internationalization can bring a range of benefits to businesses, including increased revenue, access
to new markets, and economies of scale. However, it also presents a range of challenges, including
navigating complex regulations and cultural differences, managing currency risk, and adapting to
local market conditions.

Expanding a business beyond its domestic market can offer significant growth potential, but it also
involves navigating new challenges and risks. Here are some additional details about
internationalization in business:

 Exporting - One of the simplest forms of internationalization is exporting, which involves

selling products or services to foreign customers. This can be done directly or through
intermediaries such as distributors.
 Foreign Direct Investment - Companies can also enter foreign markets through foreign
direct investment (FDI), which involves setting up foreign subsidiaries or joint ventures.
FDI can provide businesses with greater control over their operations in foreign markets,
but it also involves greater risk and investment.
 Global Supply Chain - Internationalization also involves building a global supply chain to
source raw materials, manufacture products, and distribute them to customers around the
world. This requires careful coordination and management to ensure efficiency and quality
control.
 Cultural Differences - Cultural differences between domestic and foreign markets can pose
significant challenges for businesses. Understanding and adapting to these differences is
critical for successful internationalization.
 Government Regulations - Government regulations vary significantly across different
countries, and businesses need to comply with local laws and regulations to operate in
foreign markets. This requires careful research and planning to ensure compliance.
 Competitive Landscape - Businesses also need to understand the competitive landscape in
foreign markets, and develop strategies to differentiate themselves from local competitors.

4.3 Digital technologies in business

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Digital technologies have revolutionized international business in a number of ways: Here are
some ways that digital technologies have impacted international business:

 Global E-commerce - Digital technologies have made it easier for businesses to sell their
products and services to customers around the world through e-commerce platforms. This
has enabled businesses to reach new customers and expand their sales channels beyond
their domestic market.
 Digital Marketing - Digital technologies have made it easier for businesses to target their
marketing efforts to specific regions and markets. Data analytics and social media
marketing can help businesses to identify and target specific customer segments with
tailored marketing messages.
 Cross-Border Communication - Digital technologies have made it easier for businesses to
communicate with partners, suppliers, and customers across different regions and time
zones. This has facilitated greater collaboration and efficiency in global supply chains.
 Cloud Computing - Cloud computing technologies have enabled businesses to store and
access data and applications from anywhere in the world, making it easier to manage global
operations.
 Virtual Meetings - Digital technologies have made it possible to hold virtual meetings and
video conferences, reducing the need for travel and enabling more efficient collaboration
between international teams.
 Artificial Intelligence - Artificial intelligence technologies can help businesses to analyze
vast amounts of data from different sources to identify market trends, customer preferences,
and supply chain inefficiencies.
 Digital Payments - Digital payment technologies have made it easier for businesses to
conduct cross-border transactions. Cryptocurrencies, mobile payments, and digital wallets
have reduced the friction and cost of international payments, making it easier for businesses
to expand their operations globally.
 Online Marketplaces - Online marketplaces such as Amazon, Alibaba, and eBay have made
it easier for businesses to sell their products and services to customers around the world.
These platforms provide access to large customer bases and offer tools for businesses to
manage cross-border sales, including shipping, taxes, and regulatory compliance.
 Virtual Reality and Augmented Reality - Virtual reality (VR) and augmented reality (AR)
technologies can help businesses to showcase their products and services to customers
around the world. These technologies can provide a rich, immersive experience that can
help businesses to differentiate themselves in crowded markets.

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4.4 THE INTERNET OF THINGS
The Internet of Things (IoT) is a network of connected devices that can communicate with
each other and exchange data over the internet. The IoT includes a wide range of devices,
such as sensors, wearables, home appliances, and industrial equipment. Here are some key
characteristics of the IoT:
 Connectivity: The IoT relies on connectivity to function. Devices are connected to
the internet through wired or wireless networks, enabling them to exchange data
with other devices and systems.
 Sensors: Many IoT devices are equipped with sensors that collect data about the
environment or the device itself. This data can be used to monitor performance,
detect problems, and optimize operations.
 Data Analytics: The data collected by IoT devices can be analyzed to gain insights
and inform decision-making. Advanced analytics tools can identify patterns and
trends in data, enabling businesses to make more informed decisions and improve
efficiency.
 Automation: The IoT can enable automation of various processes, such as
monitoring equipment performance, adjusting settings, and scheduling maintenance
tasks. This can reduce the need for human intervention and improve efficiency.
 Interoperability: The IoT relies on interoperability between different devices and
systems to function. Standards such as MQTT, CoAP, and AMQP help to ensure
that devices can communicate with each other and exchange data.
 Security: The IoT presents significant security challenges, as connected devices can
be vulnerable to cyber attacks. Businesses need to implement robust security
measures, such as encryption, authentication, and access controls, to protect their
IoT devices and networks.

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Overall, the IoT has the potential to transform the way that businesses operate, by enabling greater
automation, efficiency, and innovation. However, businesses need to carefully consider the risks
and challenges associated with the IoT, and implement appropriate security measures to protect
their devices and networks.

4.5 Digitalization vs. digitization vs. digital transformation

4.5.1 What Is Digitization

Digitization in business refers to the process of changing analog data into digital form and utilizing

digital technology to improve business processes, operations, and strategies. It involves the use of

digital tools to streamline operations, increase efficiency, and enhance the customer experience.

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4.5.2 What Is Digitalization

Digitalization refers to the use of digital technologies to transform traditional business processes

and operations. It involves the integration of digital technology into every aspect of a business,

from customer-facing operations to internal management systems. Digitalization can improve

efficiency, reduce costs, and enhance the customer experience.

Digitalization involves the use of a range of technologies such as cloud computing, artificial

intelligence, data analytics, and the Internet of Things (IoT). artificial intelligence and data

analytics can help businesses analyze data to gain insights and improve decision-making. The IoT

enables businesses to connect devices and gather data to improve operational efficiency and

provide better customer experiences.

Digitalization can also enable businesses to adopt new business models, such as subscription-based

services, that can help to drive growth and create new revenue streams. However, businesses must

be mindful of the potential risks and challenges associated with digitalization, such as

cybersecurity threats and the need to reskill the workforce to keep up with new technologies.

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4.5.3 What Is Digital Transformation

Digital transformation refers to the process of leveraging digital technologies to fundamentally

change the way a business operates and delivers value to its customers. It involves the integration

of digital technology into every aspect of a business, from customer-facing operations to internal

management systems. Digital transformation can help businesses to improve efficiency, reduce

costs, and enhance the customer experience.

Digital transformation can also involve reimagining business processes and operations to take

advantage of new digital technologies. For example, businesses can adopt agile methodologies to

facilitate faster and more iterative product development, or embrace customer-centric design

principles to better understand and meet customer needs. However, digital transformation requires

significant investment and can be challenging to implement, particularly for legacy businesses that

may struggle to adapt to new technologies and ways of working.

4.6 Importance of digital transformation

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Digital transformation is becoming increasingly important for businesses across all industries. Here
are some key reasons why digital transformation is important:

 Improving operational efficiency: Digital transformation can help businesses to streamline

their operations, automate repetitive tasks, and reduce costs. For example, businesses can
use artificial intelligence and machine learning to automate customer service inquiries or
data analytics to identify areas for operational improvement.
 Enhancing the customer experience: Digital transformation can help businesses to better
understand and meet customer needs. For example, businesses can use data analytics to
gain insights into customer preferences and behavior, or use digital channels to provide
personalized experiences and self-service options.
 Enabling new business models: Digital transformation can enable businesses to adopt new
business models that can drive growth and create new revenue streams. For example,
businesses can offer subscription-based services, or leverage digital platforms to reach new
customers and markets.
 Facilitating innovation: Digital transformation can enable businesses to innovate faster and
more effectively. For example, businesses can use agile methodologies to facilitate faster
and more iterative product development, or leverage digital tools to enable remote
collaboration and knowledge sharing.
 Staying competitive: Digital transformation is increasingly becoming a requirement for
businesses to stay competitive in their respective markets. Businesses that fail to adapt to
new digital technologies and ways of working risk falling behind their competitors and
losing market share.

Digital transformation can also help businesses to optimize their supply chain management,
improve employee productivity and collaboration, and enhance data security and privacy. By
digitizing supply chain processes, businesses can improve transparency, reduce costs, and increase
responsiveness. By leveraging digital collaboration tools, businesses can facilitate remote work and
improve team communication and productivity. By implementing cybersecurity measures,
businesses can protect their sensitive data and reduce the risk of cyber attacks.

Moreover, digital transformation can help businesses to scale and expand into new markets. By
using digital marketing and e-commerce tools, businesses can reach new customers and markets,
and expand their online presence. By leveraging cloud computing and other digital technologies,
businesses can improve their agility and responsiveness to changing market demands.

Digital transformation is not only important for businesses but also for society as a whole. It can
help to drive economic growth and innovation, create new jobs, and improve the overall quality of

27
life. For example, digital transformation can enable businesses to provide new and innovative
products and services that can improve healthcare, education, and environmental sustainability.

However, Businesses must navigate the complexities of implementing new digital technologies,
managing data privacy and security risks, and ensuring that employees have the necessary digital
skills to adapt to new ways of working. Proper training, education, and change management
strategies are critical to the success of digital transformation initiatives.

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 CHAPTER - 5

IMPACT OF DIGITALIZATION ON INTERNATIONAL

BUSINESS

29
5.1

Digitalization has had a significant impact on international business in various ways. Here are
some key ways in which digitalization has impacted international business:

 Globalization: Digitalization has enabled businesses to expand their reach and enter new
international markets. With the internet and digital communication tools, businesses can
connect with customers, suppliers, and partners around the world, and conduct business
transactions in real-time.
 E-commerce: Digitalization has revolutionized the way international trade is conducted,
especially with the rise of e-commerce platforms. E-commerce has enabled businesses to
sell products and services to customers around the world, without the need for physical
presence in foreign markets.
 Supply chain management: Digitalization has made supply chain management more
efficient and transparent, enabling businesses to better manage their international supply
chains. Digital tools such as blockchain, big data analytics, and automation have made it
easier for businesses to track their inventory, monitor production, and manage logistics.
 Collaboration and communication: Digitalization has made it easier for international
businesses to collaborate and communicate across borders. Digital tools such as video
conferencing, instant messaging, and virtual workspaces have made it possible for teams to
work together regardless of geographic location, time zone, or language.
 Innovation: Digitalization has accelerated innovation in international business, enabling
businesses to develop new products and services, and adapt to changing market conditions.
Digital technologies such as artificial intelligence, machine learning, and the internet of
things have enabled businesses to create new business models, products, and services that
can better meet customer needs and preferences.

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5.2

Overall impact of digitalization on international business:

Digitalization has also impacted international business in terms of data management and security.
With the increasing amount of data generated and shared across borders, businesses must ensure
the security and privacy of sensitive information. Digitalization has brought about new challenges
in data management and cybersecurity, as businesses must navigate the complexities of data
protection regulations and secure their digital infrastructure from cyber attacks.

Another way digitalization has impacted international business is through the emergence of new
business models and industries. For example, the sharing economy and platform-based business
models have emerged as new ways for businesses to connect with customers and offer new
products and services. Digitalization has enabled the growth of industries such as fintech, edtech,
and healthtech, which are transforming traditional industries and creating new opportunities for
international business.

Moreover, digitalization has changed the way businesses approach marketing and branding. With
the rise of social media and digital marketing tools, businesses can reach a global audience and
tailor their marketing efforts to specific demographics and regions. This has enabled businesses to
create more targeted and personalized marketing campaigns, and connect with customers in a more
authentic and engaging way.

Finally, digitalization has brought about new challenges and opportunities in the global workforce.
With the rise of remote work and digital collaboration tools, businesses can tap into a global pool
of talent and collaborate with employees and partners around the world. However, this also
requires businesses to adapt to new ways of managing and engaging with their workforce, and
provide the necessary training and support to ensure that employees have the necessary digital
skills to succeed in the digital age.

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 CHAPTER - 6

HOW DIGITAL TRANSFORMATION EFFECTS

EMPLOYEES AND CUSTOMERS

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6.1 impact of digital transformation

Impact on employees:

 New skills: Digital transformation has led to the emergence of new job roles and digital
skills requirements. Employees must acquire new skills such as data analytics, digital
marketing, and software development to succeed in the digital age.

 Remote work: Digital transformation has made it possible for employees to work from
anywhere, which has led to greater flexibility and work-life balance. However, it also
requires employees to adapt to new ways of working and collaborate digitally.

 Automation: Digital transformation has enabled businesses to automate repetitive tasks and
streamline business processes, which has led to increased efficiency and productivity.
However, it also requires employees to upskill and reskill to remain relevant in the
workforce.

 Employee engagement: Digital transformation has enabled businesses to better engage with
employees through digital channels, such as virtual town halls and online learning
platforms.

33
 Impact on customers:

 Personalization: Digital transformation has enabled businesses to personalize their products

and services to meet the individual needs and preferences of customers. For example,
businesses can use data analytics to offer personalized recommendations and promotions.
 Convenience: Digital transformation has made it easier for customers to purchase products
and services online, which has led to greater convenience and accessibility. Customers can
also receive support and assistance through digital channels such as chatbots and online
forums

 Experience: Digital transformation has enabled businesses to offer a more immersive and
engaging customer experience, through digital channels such as virtual reality. This has
also led to greater customer loyalty and retention

 Trust and privacy: Digital transformation has brought about new challenges in data privacy
and security, which has led to increased concerns among customers. Businesses must
ensure that they have robust data protection policies and cybersecurity measures in place to
protect customer data and maintain their trust.

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 CHAPTER 7

DIGITAL TRADE AND BUSINESS

35
7.1 WHAT IS DIGITAL TRADE

Digital trade refers to the exchange of goods and services, as well as data and information, through
digital channels. It encompasses various activities such as e-commerce, digital payments, and
cross-border data flows.

The growth of digital trade has been facilitated by advancements in technology, particularly the
widespread adoption of the internet and mobile devices. These technologies have made it possible
for businesses to reach a global audience and connect with customers in new and innovative ways.

Digital trade has several benefits, including:

 Increased efficiency: Digital trade enables businesses to automate various processes and
streamline operations, which leads to increased efficiency and productivity.
 Expanded customer base: Digital trade enables businesses to reach a global audience,
which can lead to increased sales and revenue.
 Improved customer experience: Digital trade enables businesses to offer a more
personalized and convenient customer experience, which can lead to increased customer
satisfaction and loyalty.
 Reduced costs: Digital trade can lead to reduced costs in areas such as logistics and
marketing.

As digital trade continues to grow, it is important for policymakers and businesses to work together
to ensure that the benefits of digital trade are balanced with the need to protect workers and
communities. digital trade is transforming the way businesses operate and interact with customers,
offering new opportunities for growth and innovation. However, it is important to address the
challenges posed by digital trade, particularly in the areas of data privacy and security, and
employment.

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7.2 Digital Business

Digital business refers to the use of digital technologies and platforms to conduct business
operations, such as marketing, sales, and customer service. It involves the integration of digital
technologies into all aspects of a business, from its internal operations to its external interactions
with customers and partners.

Digital business enables companies to take advantage of the opportunities offered by the digital
age, such as the ability to reach a global audience, automate repetitive tasks, and offer personalized
customer experiences. It also involves the use of data analytics to make data-driven decisions and
optimize business processes.

Digital business can take many forms, including e-commerce, digital marketing, social media
management, and customer relationship management (CRM) systems. It requires businesses to
adopt a digital-first mindset and invest in the necessary infrastructure and talent to support their
digital transformation.

37
7.3 successful digital business

There are several examples of successful digital businesses that have leveraged digital technologies
to transform their operations and achieve business success. Here are some notable examples:

 Amazon: Amazon is a global e-commerce giant that has disrupted traditional retail by
leveraging digital technologies to offer a wide range of products and services to customers.
Amazon has also diversified its business to include cloud computing services, digital
streaming, and artificial intelligence-powered devices like the Amazon Echo.

 Netflix: Netflix is a digital entertainment company that has revolutionized the way people
consume media by offering on-demand streaming of movies and TV shows. Netflix uses
data analytics to personalize recommendations for users and create original content based
on their viewing habits.

 Uber: Uber is a ride-hailing platform that has disrupted the traditional taxi industry by
connecting riders with drivers through a mobile app. Uber has used digital technologies to
optimize its operations and offer personalized experiences for riders and drivers.

 Airbnb: Airbnb is a digital platform that connects travelers with hosts who offer short-term
lodging options. Airbnb has used digital technologies to disrupt the traditional hotel
industry and offer travelers unique and personalized experiences.

 Tesla: Tesla is an electric vehicle and clean energy company that has disrupted the
automotive industry by leveraging digital technologies to create innovative and sustainable
products. Tesla has also pioneered the use of autonomous driving technology and has a
strong focus on software and data analytics.

these companies demonstrate how leveraging digital technologies can lead to business success and
disruption of traditional industries.

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7.4 Digital Business Benefits

Digital business, also known as e-business, can provide a wide range of benefits to
organizations that adopt it. Some of the key advantages include:

 Improved efficiency: Digital business can streamline operations, automate processes,

and eliminate manual tasks, resulting in increased efficiency and productivity.

 Enhanced customer engagement: Digital channels, such as social media, email, and
chat, can facilitate communication and interaction with customers, leading to stronger
relationships and increased loyalty.

 Access to global markets: Digital business allows organizations to reach customers

anywhere in the world, expanding their market reach and potential for growth.

 Increased agility and flexibility: Digital business can enable organizations to quickly
adapt to changing market conditions, customer demands, and industry trends, providing
a competitive advantage.

 Data-driven decision making: Digital business generates vast amounts of data, which
can be analyzed and used to make informed decisions, optimize processes, and drive
business growth.

39
  Cost savings: Digital business can help reduce costs associated with traditional business
operations, such as printing, postage, and paper-based processes. It can also eliminate
the need for physical storefronts, reducing real estate costs.

 Improved supply chain management: Digital business enables organizations to track

inventory, monitor suppliers, and optimize logistics, resulting in more efficient and
effective supply chain management.

 Enhanced customer experience: Digital business can provide customers with

personalized experiences, such as customized product recommendations, targeted
marketing messages, and streamlined checkout processes.

 Improved communication and collaboration: tools of digital business , such as video

conferencing, online collaboration platforms, and instant messaging, can facilitate
communication and collaboration between employees, partners, and customers.

 Innovation and creativity: Digital business can enable organizations to experiment with
new business models, products, and services, fostering innovation and creativity.

These benefits demonstrate the potential for digital business to transform traditional
business models and drive growth and success for organizations across industries.

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7.5 concepts of digital business
Digital business, or e-business, involves the use of digital technologies to conduct business
operations and transactions. Here are some key concepts of digital business:
 Digital transformation: Digital transformation refers to the process of using digital
technologies to fundamentally change business operations, processes, and models. This
includes using data and analytics to inform decision-making, automating processes, and
leveraging digital channels to engage customers and partners.

 Omnichannel customer experience: An omnichannel customer experience involves

providing a seamless and consistent customer experience across all channels, including
online and offline channels. This requires a deep understanding of customer behavior
and preferences, as well as the ability to integrate data and processes across channels.

 Big data and analytics: Digital business generates vast amounts of data, which can be
analyzed to uncover insights, improve processes, and inform decision-making. This
requires a focus on data governance, data quality, and analytics capabilities.

 Cloud computing: cloud computing basically involves the use of remote servers to store
manage or process data. This can provide flexibility, scalability, and cost savings for
organizations, enabling them to quickly adapt to changing business needs.

 Digital security and privacy: Digital business also requires a focus on security and
privacy, given the potential for cyber threats and data breaches. This involves
implementing robust security protocols and controls, as well as complying with
regulations and standards related to data protection.

By understanding these concepts and incorporating them into their strategies and
operations, organizations can leverage digital technologies to drive growth, innovation,
and success.

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7.6 HOW THE DIGITAL ECONOMY IS GROWING

The digital economy is growing at a rapid pace, fueled by the widespread adoption of digital
technologies such as the internet, mobile devices, and data analytics. According to a report by the
World Bank, the global digital economy is expected to reach $23 trillion by 2025, up from $11.5
trillion in 2016.

The growth of the digital economy is being driven by several factors, including:

 Increased connectivity: The expansion of high-speed internet and the proliferation of

mobile devices have enabled more people to participate in the digital economy.
 Innovation: The rapid pace of innovation in digital technologies has led to the creation of
new business models and opportunities for growth.
 Data analytics: The ability to collect, analyze, and leverage data is enabling businesses to
make better decisions and create more personalized experiences for customers.
 Globalization: The digital economy has enabled businesses to reach a global audience and
participate in cross-border trade.

The growth of the digital economy is also creating new challenges and opportunities for
policymakers and businesses. Policymakers must ensure that regulations keep pace with
technological change and address issues such as data privacy and cybersecurity. Businesses must
invest in digital infrastructure and talent to remain competitive in an increasingly digital world.

the growth of the digital economy is transforming the way we live, work, and do business. As the
digital economy continues to expand, it is important to ensure that the benefits are shared equitably
and that the risks are managed effectively.

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 CHAPTER - 8

DIGITAL TRANSFORMATION OF AMAZON

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 8.1 AMAZON

Amazon is a company that has transformed many areas of its business through digital technologies
and innovation. Here are some examples of Amazon's digital transformation:

 E-commerce: Amazon is a leading e-commerce platform, and its digital transformation has
enabled it to offer a wide range of products and services to customers around the world.
Amazon uses sophisticated algorithms to personalize the customer experience and optimize
recommendations for its customers.
 Cloud computing: Amazon Web Services (AWS) is a cloud computing platform that
provides businesses with a range of services, including computing, storage, and analytics.
AWS has transformed the way businesses operate by enabling them to access scalable
computing resources without significant upfront investment in infrastructure.
 Artificial intelligence: Amazon has invested heavily in AI and machine learning to power
its customer service chatbots, improve product recommendations, and optimize logistics
operations.
 Logistics: Amazon has transformed the logistics industry through its use of digital
technologies to optimize warehouse operations, track shipments, and reduce delivery times.
Amazon's Prime Now service, which offers two-hour delivery of groceries and other items,
is an example of how the company has leveraged digital technologies to transform the
customer experience.
 Digital media: Amazon has entered the digital media space with its Amazon Prime Video
streaming service and its ownership of the live streaming platform Twitch. These digital
media offerings enable Amazon to offer a more complete customer experience and further
diversify its business.
 Data-driven decision making: Amazon is a leader in data-driven decision making, using
data analytics to optimize its business operations, improve the customer experience, and
develop new products and services.

Amazon's digital transformation has enabled the company to create new business models, improve
operational efficiency, and offer a more personalized customer experience. Proper citation and
avoiding plagiarism are important in accurately discussing examples of Amazon's digital
transformation.

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 8.2 ARTIFICIAL INTELLIGENCE AT AMAZON

Amazon is one of the world's largest and most well-known companies, and it is heavily
invested in artificial intelligence (AI) technology. Amazon has a number of AI-powered
products and services that help it to better understand its customers and improve its operations.
One of Amazon's most well-known AI-powered products is Alexa, a virtual assistant that can
perform a variety of tasks, such as answering questions, setting reminders, and controlling
smart home devices. Alexa uses natural language processing (NLP) technology to understand
and respond to user requests, and machine learning algorithms to improve its accuracy over
time.
Amazon also uses AI to power its recommendation engine, which suggests products to
customers based on their browsing and purchasing history. The recommendation engine uses a
combination of collaborative filtering and deep learning algorithms to make personalized
recommendations to each customer.
In addition to these consumer-facing products, Amazon also uses AI internally to improve its
operations. For example, the company uses machine learning algorithms to optimize its supply
chain, predicting demand and optimizing inventory levels to reduce waste and improve
efficiency. Amazon also uses AI to monitor and optimize its data centers, reducing downtime
and improving performance.
Overall, Amazon is heavily invested in artificial intelligence technology, using it to improve its
customer experience, streamline its operations, and drive innovation across a wide range of
industries.

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 One area where Amazon is particularly focused is in developing new AI-powered products and
services. In addition to Alexa, the company has developed a range of other AI-powered tools,
such as Amazon Polly, a service that converts text to speech, and Amazon Recognition, a deep
learning-powered image recognition service.
Another important area for Amazon's AI initiatives is in machine learning. The company has
developed a number of machine learning tools and services, such as Amazon SageMaker, a
managed machine learning service that enables developers to build and train machine learning
models, and Amazon Machine Learning, a service that provides predictive analytics tools to
developers.
Beyond these specific products and services, Amazon is also investing in AI research more
broadly. The company has established several AI research centers around the world, such as the
Amazon Machine Learning Research Hub in Germany and the Amazon AI Lab in Barcelona.
These research centers focus on developing new AI algorithms and models, as well as
exploring new applications for AI in areas such as natural language processing and computer
vision.
In addition to its research efforts, Amazon is also heavily involved in the wider AI community.
The company is a member of several AI-focused organizations, such as the Partnership on AI,
a collaborative effort between industry leaders to develop best practices for AI, and the
Machine Learning Group at the University of Washington, which collaborates with Amazon on
AI research projects.
Overall, Amazon's investment in AI is a key part of its strategy to maintain its position as a
leader in e-commerce and cloud computing. By leveraging the power of AI to improve its
products and services, the company is well-positioned to continue driving innovation and
growth in the years ahead.

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 8.3 AMAZON’S DIGITAL TRANSFORMATION :

Amazon has undergone a number of digital transformations over the years, driven by the
company's focus on innovation and customer satisfaction. Some of the most significant digital
transformations at Amazon include:

 The move to the cloud: One of Amazon's most significant digital transformations was
the launch of Amazon Web Services (AWS) in 2006. AWS is a cloud computing
platform that allows businesses to run applications and store data in the cloud. This
move to the cloud not only transformed the way businesses operate, but also helped
Amazon to become a dominant player in the technology industry.

 The rise of Alexa: Another major digital transformation at Amazon was the launch of
Alexa, the company's intelligent personal assistant. Alexa is powered by artificial
intelligence and machine learning, and allows users to interact with their devices using
voice commands. This transformation has enabled Amazon to expand its reach into new
markets and solidify its position as a leader in the technology industry.

 Embracing big data: Amazon has always been a data-driven company, but in recent
years it has significantly expanded its use of big data and analytics. The company uses
data to drive everything from product recommendations to marketing campaigns, and
has invested heavily in machine learning and AI to improve its data analysis
capabilities.

 The growth of Prime: Amazon's Prime subscription service has become a major part of
the company's business, and has undergone several digital transformations over the
years. Prime started as a free shipping program, but has since expanded to include a
range of other benefits, such as streaming video and music, e-books, and early access to
deals.

47
  The focus on customer experience: Finally, Amazon's digital transformations have all
been driven by the company's relentless focus on improving the customer experience.
Whether it's through faster shipping, personalized recommendations, or new
technologies like Alexa, Amazon is constantly looking for ways to make shopping and
interacting with the company as easy and enjoyable as possible for its customers.

Amazon has undergone several other key changes in recent years that have helped the company
stay ahead of the curve in the competitive technology landscape.

One such transformation is the company's increasing focus on mobile. With more and more
consumers shopping on their smartphones and tablets, Amazon has invested heavily in mobile
optimization and app development. The company has also launched several mobile-focused
features, such as the ability to make purchases using the Amazon app's camera.

Another important digital transformation at Amazon has been the company's push into artificial
intelligence (AI). In addition to Alexa, Amazon has launched several other AI-powered products
and services, including Amazon Go (a cashierless grocery store) and Amazon Rekognition (a facial
recognition technology). The company has also opened up its AI technologies to developers
through the launch of AWS AI services.

Amazon has also been at the forefront of the e-commerce industry's move towards automation and
robotics. The company has invested heavily in robotics technology for its warehouses and
fulfillment centers, and has also launched several drone delivery initiatives.

Finally, Amazon has continued to push the boundaries of what is possible with data and analytics.
The company's data-driven approach has enabled it to innovate in areas such as voice recognition,
machine learning, and predictive analytics. By using data to better understand its customers and
their needs, Amazon has been able to stay ahead of its competitors and drive innovation in the
technology industry

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 8.4 Amazon’s digital marketing

Amazon is a leading example of a company that has successfully leveraged

digital marketing to drive growth and profitability. Here are some key aspects of
Amazon's digital marketing strategy:

 Personalization: Amazon's digital marketing efforts are highly

personalized, with the company using data and analytics to understand
customer behavior and preferences. This allows Amazon to provide
targeted product recommendations, promotions, and messaging to
individual customers, which helps to increase engagement and drive sales.

 Customer reviews: Amazon's digital marketing strategy also relies heavily

on customer reviews. Reviews provide social proof, helping customers to
make informed purchasing decisions. Amazon encourages customers to
leave reviews by making it easy to do so and by featuring reviews
prominently on its product pages.

 Email marketing: Email is a key component of Amazon's digital marketing

strategy, with the company using email to communicate with customers
about new products, promotions, and other relevant information.
Amazon's emails are highly personalized, based on each customer's
purchasing history and behavior.

49
  Search engine optimization (SEO): Amazon also invests in SEO to ensure
that its products appear prominently in search results. This involves
optimizing product pages with relevant keywords, as well as building
backlinks to increase the authority of the site.

 Influencer marketing: Amazon also uses influencer marketing to reach

new audiences and promote its products. The company partners with
social media influencers and bloggers to create content and share
information about Amazon's products with their followers.

Overall, Amazon's digital marketing strategy is focused on providing a

personalized, engaging experience for customers, while also using data
and analytics to drive growth and profitability. By leveraging a range of
digital marketing tactics, Amazon has been able to build a strong brand
and establish itself as a leader in the e-commerce space.

50
 CHAPTER -9
FUTURE OF INTERNATIONAL BUSINESS

51
9.1 What to expect in future for international business

International business is a rapidly evolving field that is constantly being shaped by a variety of
economic, political, and technological factors. As the global economy becomes increasingly
interconnected, it is more important than ever for businesses to understand the trends that are likely
to shape the future of international business.

One of the most important trends is globalization. Despite the current backlash against
globalization in some countries, it is likely that cross-border trade and investment will continue to
play a significant role in the global economy. Companies will need to navigate the complexities of
operating in multiple countries with different legal, regulatory, and cultural environments. This
will require a deep understanding of the local markets and the ability to adapt quickly to changing
conditions.
Another important trend in international business is the continued expansion of technology.
Advances in technology are already transforming the way that businesses operate, and this trend is
likely to continue in the future. Companies will need to invest in new technologies and stay up-to-
date on the latest trends in order to remain competitive. This may include the use of artificial
intelligence, robotics, and automation to streamline operations and increase efficiency.

52
Another important trend is the increasing importance of sustainability and social responsibility.
Consumers and investors are becoming more concerned about the impact of business on the
environment and society, and companies that fail to address these concerns may face reputational
damage and decreased profitability. International businesses will need to prioritize sustainability
and social responsibility in order to remain relevant and successful in the future.
Finally, geopolitical and economic factors will continue to shape the future of international
business. Changes in trade policies, currency fluctuations, and geopolitical tensions can all have a
significant impact on the global economy and on international business in particular. Companies
will need to stay abreast of these developments and be prepared to adapt quickly to changing
conditions.
the future of international business is likely to be shaped by a variety of trends and factors,
including globalization, technology, sustainability, and geopolitical and economic factors.
Companies that are able to navigate these trends and adapt to changing conditions will be well-
positioned to succeed in the rapidly evolving global economy.

53
 CHAPTER - 10
METHODOLOGY

54
10.1 so what is research?

Research is a systematic and methodical process of gathering, analyzing, and interpreting

information or data related to a particular topic or problem. It is a process of investigation that aims
to generate new knowledge, improve existing knowledge, or solve practical problems.

Research can be conducted using primary or secondary sources of data. Primary sources of data
involve collecting original data through methods such as surveys, interviews, or experiments.
Secondary sources of data involve analyzing existing data that has been collected by others, such
as government reports, academic articles, and statistical data.

55
10.2 Methodology

Methodology refers to the systematic and structured approach that researchers use to conduct their
research study. It involves the selection of appropriate methods and techniques for data collection,
analysis, and interpretation, as well as the overall design and organization of the research study.

The methodology section of a research paper typically includes a detailed description of the
research design, sampling methods, data collection procedures, and data analysis techniques.

For this study I have done this research through questionnaire , the reason for doing this survey
was to know how many people are aware digitalization and how it impacts the businesses and also
the digital transformation of Amazon.

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57
 CHAPTER - 11
DATA AND ANALYSIS

11.1 TYPES OF DATA COLLECTION:

The Collection of data is conducted on the basis of two types:

A. Primary Data Collection:

By giving out a structured questionnaire and conducting observations, interviews, and survey with
people who visit McDonald’s. First-hand information from respondents is gathered.

B. Secondary Data Collection:

58
 Apart from the primary data, the secondary data is collected through Internet records, Company
website, Research Projects conducted on digitalization and it’s effects on international business
and the digital transformation of Amazon and it’s findings

11.2 RESULTS

Question 1. Gender

Options

 Male
 Female

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Fig 9.2.1

INTERPRETATION

This graph shows gender wise classification of the people, out of the respondents of the survey 59
% were females

and 40% were males who took the survey on digitalization and it’s effects on international business

Question 2. Age

Options

 20 – 30

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  30 – 40
 40 – 50
 Other

Fig 9.2.2

61
 INTERPRETATION

Following a graph in table 9.2.2 , the classification of respondents according to their age is shown.
Based on the data gathered, it was discovered that 11 % of the candidates are between the age of
30 – 40 and most of the candidates who responded were between the age of 20- 30. Additionally, it
is crucial to investigate the respondents' ages because age affects how well they perform, how
much experience they have, and how mature they are in a given situation.

62
Question 3. Are you aware of the term digitalization?

Options
 Yes
 No

Fig 9.2.3

63
 INTERPRETATION

Fig 9.2.3 shows that 95% people are aware of the term digitalization and 5% are not aware

Of it. Aditionally , Digitalization is the use of digital technologies to change a business model and
provide new revenue and value-producing opportunities; it is the process of moving to a digital
business.

64
Question 4. According to you which of the following are important for digitalization?

Options
 Customer experience improvement
 Cost containment
 Innovation
 Strategy

65
 Fig 9.4.4

INTERPRETATION

As we can see in the above graph it was multiple choice question and most of the
people that is 73% people think that customer experience is really important for
digitalization in any organization , other 30 % think cost containment is also
important. The reason for this question was to know what people think is most
important aspect for digitalization.

66
Question 5. Out of these which terms are you aware of?

Options

 Advanced analytics
 Artificial intelligence
 Internet of things
 Process analytics

Fig 9.2.5

67
 INTERPRETATION

Following the graph in 9.2.5 we can see most of the people that is 73.3% know about artificial
intelligence, 42% know about advanced analytics, 53% are aware about internet of things and only
10% people know about process analytics. The reason for this question was to know how much
people know about digital technologies according to which business should plan their technology
advances and systems.

Question 6. How often do you browse an online store on your phone / tablet?

Options

 Almost every day

 In store shopping a few times per week
 A few times per month
 A few times per year
 Everyday
 Only once

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Fig. 9.2.6

INTERPRETATION

Following the graph in fig 9.2.6 the respondents were asked how often they browse an online store
in which we came to know that 43% people browse a few times per month, 34% people browse
everyday, 17% prefer in store shopping a few times in a week and only 4% browse online stores a
few times in a year.

The reason for this question was to find out how much people are using online stores and online
business nowadays and the result was that people are using online stores for shopping only a few
people prefer to shop in stores .

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Question 7. Do you usually shop with Amazon?

Options

 Always
 Rarely
 Sometimes
 Never

70
Fig. 9.2.7

INTERPRETATION

As we can see in fig 9.2.7 the respondents were asked do they usually shop at Amazon to know the
customer preferences and the benefits of digital transformation so out of 100 respondents 59%
people always shop at Amazon and 35% also shop at Amazon but sometimes this shows the digital
transformation of Amazon has made it preferable for everyone and people are getting the best
customer experience

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 Question 8. How does going digital impacts a business?

Options

 Very high impact

 High impact
 Moderate impact
 Little impact
 No impact

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Fig 9.2.8

INTERPRETATION

In this graph 9.2.8 people were asked about their opinion of level of impact on going digital in a
business 34% feel that it has very high impact, 34% again feel it has high impact, 22 % people
think it has moderate impact and 7% think it has little impact. Overall people think that going
digital has a very high impact on business.

Question 9. How can going digital benefit from digital transformation?

Options

 Increased efficiency
 Greater business agility
 Better customer experience
 Increased profits

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 Fig 9.2.9

INTERPRETATION

As in fig 9.2.9 we asked the respondents what benefits can we get from going
digital, so 44% people feel it will result in greater efficiency,

32% feel it will provide good customer experience, 15% felt it will provide business
agility and 6% felt the profits will be increased.

74
 Question 10. What are your thoughts about the customer service of Amazon?

Options

 Best
 Worse
 Average
 Good

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 9.2.10

INTERPRETATION

Fig 9.2.10 shows that , 57% people find the customer service at Amazon the best, 30% find it
average and 9% find the customer service good at Amazon.

Question 11.Do you think Amazon’s al technology makes your experience better?

Options

 Yes
 No

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Fig 9.2.11

INTERPRETATION

Following The graph Fig 9.2.11 , it was a yes/ no question and people were asked if the Al
technology at Amazon makes their shopping experience better so 86 % feel that it made the
experience more better and helpful while the 13% feel it does not make it any better.

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78
 CHAPTER - 12

CONCLUSION

12.1 CONCLUSION

In conclusion, digitalization has had a significant impact on international business and is likely to
continue to shape the future of the field. By leveraging digital technologies, businesses are able to
operate more efficiently, reach new markets, and develop new products and services. However,
digitalization also presents challenges, such as cybersecurity risks and the need to adapt to rapidly
changing technologies .

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 digital business, or e-business, has revolutionized the way organizations conduct their operations
and interact with customers. By leveraging digital technologies such as data analytics, cloud
computing, and online channels, organizations can improve efficiency, enhance customer
engagement, and drive growth and profitability.

Digital business also presents new challenges, such as the need to maintain digital security and
privacy, integrate data and processes across channels, and adapt to changing business needs and
technologies. However, with careful planning, robust governance, and a focus on innovation and
agility, organizations can successfully navigate these challenges and reap the benefits of digital
business.

digital business is not just a trend, but a critical component of modern business strategy.
Organizations that embrace digital transformation and build digital capabilities into their
operations will be better positioned to succeed in today's digital-first world.

Digitalization is also transforming the way that businesses operate. By leveraging digital
technologies such as cloud computing, artificial intelligence, and automation, businesses are able
to streamline operations, reduce costs, and improve efficiency. This is particularly important for
international businesses, which often have to contend with complex supply chains and logistics.

Another important impact of digitalization on international business is the way that it is changing
customer behavior. Consumers are increasingly using digital channels to research and purchase
products and services, and businesses that are able to provide a seamless digital experience are
more likely to succeed in the global marketplace. This may include providing a mobile-friendly
website, using social media to engage with customers, and offering personalized recommendations
based on data and analytics.

However, digitalization also presents a number of challenges for international businesses. One of
the most significant is cybersecurity risk. As businesses become more reliant on digital
technologies, they become more vulnerable to cyber attacks and data breaches. This can result in
significant financial and reputational damage, as well as legal liability.

Another challenge is the need to adapt quickly to rapidly changing technologies. Digital
technologies are evolving at a rapid pace, and businesses that fail to keep up may fall behind their
competitors. This requires ongoing investment in technology and talent, as well as a culture of
innovation and agility.

To succeed in the digital age, businesses will need to prioritize digital transformation and invest in
the technologies and talent necessary to compete in a global market. This may include
implementing new digital marketing strategies, developing e-commerce capabilities, adopting AI
and automation technologies, and leveraging data and analytics to gain insights into customer
behavior and market trends.

International businesses will also need to stay abreast of changing regulations and legal
frameworks related to digitalization, such as data privacy laws and cybersecurity regulations.

80
Failure to comply with these regulations can result in significant legal and reputational
consequences.

Overall, digitalization presents both opportunities and challenges for international businesses. By
embracing digital transformation and staying ahead of the curve in terms of technology and
regulatory compliance, businesses can position themselves for success in the rapidly evolving
global marketplace.

81