DIGITAL ECONOMY

Digital Economy

Digital Economy

Introduction

Internet has been piercing in almost all the flied with high pace since 1990. In these circumstances, the human culture is moving towards the era of the digital economy. This is the complex interaction between the process, people and technology in order to develop socio economic advantages for everyone. Digital economy offers a global platform on which organization and people can cooperate, correspond, collaborate and share information. As digital economy has been fame for the public interest, it has made life easier for the public through digitalization of goods like, music, written work, movies and games which can almost cost nothing when moving from one party to another. This formulates models for new business and strategies employed by the business firm that operates in these markets.

However, in this paper we will see the literature of the prices discrimination and customer loyalty and how company sell their online services with the customer security and other things in the digital economy. Hence, the trust of the customers related to the above mentioned factors. Moreover, the Microsoft case on achieving significant financial benefits from consolidating collaboration, document management, internal and external portal software, and search through digital economy.

Literature review

Digital economy is a new structure of the economy which is the outcome of the digital revolution penetrating everywhere in society as well as in economy. This economy pushed by the continuous innovation of digital technology and escort with society knowledge, digital technology innovation hence ended with the development of the new economy. Thus, one can afford the genuine substance of the digital economy. However, when customer purchase through the internet, they consider a lot of factors, these factors comprise of prices, safety, trust and privacy. Online business trustworthiness and trust in the Internet medium demonstrated significant relation with overall trust in e-commerce (Griffin, 2010, Pp. 251).

It proved with the help of the literature review that trust in the internet is up till now is a myth, since it is a big trend which is bringing, a new shape to the business and the information technology that runs it. Nevertheless, yet there is one main theme which resolves around the discussion made above, it says that in almost every case, there are some certain rules and principle of the business that e-commerce does not change. It requires a large amount of money to do business on the web and make it successful, involve leadership that is creative and execution. It requires shrewdness of marketing, determination also application of IT that is intelligent. A lot of aspects of the business and industry changed and will be better as the internet is taking more space in the industry. In the coming years but the certain principles of the business will remain the same. To get results and ensure that these are efficient, concrete and satisfactory you need to create strategies for each company (Shields, Ronan, 2011, Pp. 1).

The Internet is a powerful means of communication capable of building a relationship between customer and ...