Question

Anthony notices that his Discover Card statement gives the company's Web address (Discovercard) and directs him there to pay his bills and answer his questions. What e-business strategy is Discover employing with this reference to its website

Answer 1

OPTIONS:

A. Increasing revenue streams

B. Selling additional services such as fraud insurance

C. Decreasing expenses

D. Decreasing revenue streams

Answer:

C. Decreasing expenses

Explanation:

One major e-business strategy that is most appreciated is the reduction of costs associated with providing a service. Expenses that should have been incurred on document preparation, mail preparation,telephone calls, running a physical office etc,are saved, as operating cost is reduced. The website address given by Discover Card, directing Anthony to pay his bills and find also find answers to his questions, is a strategy of reducing expenses that would he been incurred providing such services offline.