A digital-first approach impacts traditional business models by prioritizing online engagement over in-person interactions. Businesses embracing this model often develop strong digital channels, enhancing customer accessibility and convenience. This shift leads to increased competition within the market as newcomers leverage digital technology to offer innovative solutions. Additionally, companies must adapt their strategies, focusing on data-driven insights to enhance user experiences. However, some traditional businesses may struggle to pivot, facing challenges in restructuring operations and updating legacy systems to integrate a digital-first mindset effectively.