Question 1, Establishing presence (25 points)
The context is a brick and mortar/physical retailer selling accessories like hats, bags, gloves etc. The owner-manager has a limited experience of Internet as a marketplace, however the daughter of the family has returned from university studies abroad and suggested a more digital approach. The owner-manager has thus decided to add an online channel to the existing physical store channel, enabling customers to purchase and interact through e-commerce.
You are to, based on your theoretical understanding:
1.- Suggest an e-commerce business model (or combination of models) that you find suitable and to be the most successful for the company at this stage, motivate/argue why (10p).
2.- Discuss advantages and disadvantages of running a company’s e-commerce presence in-house or outsourcing the entire operation; suggest which strategy you find suitable and in the best interest of the company, motivate/argue why (10p).