Your friend owns and operates a wholesale shoe business with annual revenues of $5 million dollars. His wholesale business specializes in supplying and supporting retailers with shoes produced under the two prominent brand names - Columbia and North Face. His motto is "add value for customers or perish". He wants you to help him with the idea of opening a retail e-store on the Internet.

1. Give two reasons why Internet sales may increase the bargaining power of customers?

2. How may information systems assist the retail e-store with a differentiation strategy?

3. What are some of the issues or challenges of operating a retail e-store that need to be addressed?

4. As a new business, information for decision making will be critical for the retail e-store. Explain how data mining and online reporting functionality would help with decision making.

5. Your friend knows that he needs robust e-commerce and business intelligence systems. However, he wants to know what other system should he consider and how would this systems add value?