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subsequently sent to a that adapts sets of engineering drawings into fabrication drawings, which are employs a skilled Located on Vancouver Island, Detailed Design Drafting Services Ltd. is a medium-sized company fabrication shop for construction. Owner and president Nick Osmond founded the company in 1997. In its first year, it operated as a traditional business and achieved modest growth. In 1998, it launched team of engineers, project managers, information technology technicians, and senior, intermediate, The company's original market was the surrounding area of Vancouver Island and the Greater Vancouver Mainland Region. Since it developed e-commerce capability, its markets have shifted entirely to the United States. One hundred percent of its current sales are to American fabricators, of which 80 percent are medium-sized and 20 percent are large companies. Detailed Design Drafting Services Ltd. conducts business in 12 states, with the heaviest concentration in New York State and Utah. Recently, the company entered into a key supplier relationship with a company in Shanghai, 1. Case Study: Detailed Design Drafting Services Ltd. a website and was repositioned as an e-commerce operation. The company now and junior detailers. China, to whom it intends to subcontract 10 percent of its detailing volume to increase its profitability and support market demand for the company's services. Osmond claims that this Shanghai company can deliver much of the required detailing through the Internet at one-fifth of his production cost. 1. Why would Detailed Design Drafting Services Ltd. consider subcontracting business to China? Identify a potential disadvantage of this strategy. 2. How has e-commerce changed the marketplace for Detailed Design Drafting Services Ltd.? 3. With a partner, develop a list of five other businesses that could use e-commerce to expand into new markets