QUESTION 1:

Introductory Case:

Your uncle owns and operates a small retail store that sells the outdoor clothing of a Ghanaian manufacturer to the predominantly college-student market at KNUST. Lately, a large department store in Kumasi has started selling similar but lower-priced clothing manufactured in China. Your uncle is starting to lose business to this new store. A business associate of your uncle suggested that he considers selling over the internet. Your uncle is the old school type who doesnt even have an email and he has his doubts about getting into something he doesnt understand. When your uncle heard that you had recently completed a course in e-business, he got excited and contacted you to analyze the situation and offer some suggestions. Your uncle is very much worried about the drastic change that this e-business approach will have on his business and he wonders how he will cope with managing this change.

In view of the above, answer ALL the following questions;

(e) Your uncle being an old school person is afraid of taking risks. Explain risk management in the context of e-business to him, explaining any three (3) risks factors he is likely to face and your suggestions on how he can overcome them.

(f) What is an online revenue model? Explain any four (4) online revenue models that will fit perfectly with your uncles product offering.

(g) State and explain with examples any two (2) trading locations in the electronic marketplace your uncle wants to enter. Which of these locations will be his domain?