Question

You have an entrepreneurial spirit and decide to start your own business. You know you first have to consider the degree of digitization you are going to pursue your new business. What does this mean? What are your options? Which option would you choose and why?

Answer 1

Degree of digitization = the extent to which the commerce has been transformed from physical todigital

Options = brick-and-mortar (physical only), virtual/pure-play (online only), and click-and-mortar(physical and online)

Why (potential answers) = brick-and-mortar (niche products for a niche area…you want to get people to come to the store), virtual (don’t want the overhead of a physical store), click-and-mortar (want to balance overhead costs of a store and letting people “touch” products)

Difficulty: Medium

Section: Overview of E-Business and E-Commerce

Learning Objective: 1

Bloom: Knowledge, Comprehension, Application, Synthesis, Evaluation

AACSB: Written and oral communication, Analytical thinking, Information technology, Reflective thinking, Application of knowledge