DIGITAL ECONOMY: A THREAT OR AN OPPORTUNITY FOR TRADITIONAL BUSINESS?
Keywords:
Digital economy, traditional business, digital transformation, e-commerce, automation, artificial intelligence, market disruption, digital marketing, consumer behavior, sustainability.Abstract
The digital economy has reshaped industries worldwide, bringing both significant challenges and unprecedented opportunities for traditional businesses. The transition from conventional business models to digital platforms has been accelerated by advancements in artificial intelligence (AI), big data, e-commerce, and automation. While digitalization enhances efficiency, reduces costs, and enables global expansion, it also disrupts traditional industries, increasing competition and altering consumer behavior. This paper explores the impact of digital transformation on conventional businesses, discussing key threats such as automation, cybersecurity risks, and high adaptation costs, alongside opportunities like market expansion, personalized customer experiences, and sustainability. Through an analysis of successful case studies, this paper argues that businesses that embrace digitalization strategically can thrive in the digital economy rather than being overtaken by it.
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