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BUIS 463: Electronic Commerce
Exercise #01
Spring 2022 Semester
Instructions:
Answer each question thoroughly. Points will be deducted for fragmentary answers.
The completed assignment should be submitted in the designated Drop Box by
midnight on Saturday, February 26, 2022.
1. Many customers who use mobile devices prefer to make purchases using a mobile app
instead of their devices’ Web browsers. It is less clear that these customers search for and
select specific products using only the merchant’s dedicated mobile app. In about 200
words, outline the advantages and disadvantages of using a specific merchant’s mobile app
to select and purchase products. (5 points)
2. In the first wave of electronic commerce, many businesses tried to capitalize on a first-
mover advantage. In the second wave, businesses were more likely to employ a smart-
follower strategy. In about 100 words, compare the first-mover advantage to the smart-
follower strategy. (5 points)
3. Some business and political leaders argue that offshoring is dangerous because it can move
jobs from developed countries to less-developed countries. Others argue that although
offshoring might displace workers in the short run, in the longer term, everyone benefits
by having developing economies create new industries, products, and markets for products
and services that create high-level service and managerial jobs in the developed world. In
recent years, some economists have argued that offshoring today is having a negative
impact on service and professional employment in highly developed countries. Using
resources in your library or online, present two arguments for and two arguments against a
U.S. company offshoring the management of its customer relationships to technical and
managerial personnel in a less developed country. (10 points)
4. Visit the Amazon website.
(A) Explain its value proposition and revenue model.
(B) Find competing sites in this category and assess how they differ from Amazon.
(C) What is Amazon’s competitive advantage? (15 points)
5. Search the Web for an example of each of the major types of e-commerce. Prepare a written
report describing each company (take a screenshot of each, if possible), and explain why it
fits into the category of e-commerce to which you have assigned it. (20 points)
6. Given the development and history of e-commerce in the years from 1995–2020, what do
you predict we will see during the next five years of e-commerce?
(A) Describe some of the technological, business, and societal shifts in the global economy
that have been or could be triggered by the COVID-19 pandemic. (10 points)
(B) Prepare a written report to explain your vision of what e-commerce will look like in
2025. (10 points)
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