The “SmoothPay: Growing a Mobile Payment User Base” case illustrates the transformative capacity ofinformation systems (IS) in the mobile payment and loyalty solutions market. SmoothPay, a 14‐people start‐up in Canada that offered mobile payment and loyalty solutions, enjoyed initial achievements after its launchin 2014. In less than two years, through industry partnerships and community engagement, SmoothPay grewto have over 100 merchants in its system, with over 5,000 users. However, the future was full of risks anduncertainty: businesses and consumers in Canada were both slow in adopting mobile payments, and, as asmall firm, SmoothPay had not yet established brand awareness. SmoothPay’s management needed toaddress several key challenges.Your analysis should comprehensively cover items discussed in the SmoothPay case and reference outsidesources to support your arguments. Your case analysis must address the following questions:Part 1: Mobile Payment1. What is mobile payment? How has mobile payment evolved over time? Research, identify, and explainfour critical challenges facing the mobile payment industry. For each challenge, identify and justify waysin which Information Systems (IS) could provide an innovative solution. (10%)Part 2: Enterprise Strategy2. Explain the term “strategic value.” Discuss, with three specific examples from the Smoothpay case, onhow IS provide strategic value for the organization. While engaging material from the case, you shouldalso review and evaluate SmoothPay’s website and public systems (e.g. mobile apps, etc.). (10%)3. What are SmoothPay’s core competencies? How do these competencies differ from what is offered byits competitors? (10%)4. Define network effects. Explain how SmoothPay uses network effects to grow its business. In yourexplanation refer to materials in the case and outside sources you independently researched. (10%)Part 3: Market Positioning5. Does SmoothPay demonstrate operational effectiveness or strategic positioning? Give three reasons tosupport your argument? (10%)6. In class, we discussed how the Internet influences industry structure. Apply Porter’s Five Forcesframework to analyze SmoothPay’s competitive strategy based on the information provided in the caseand other available information about the related industry. Your discussion must clearly identify howSmoothPay could use IS to gain a competitive advantage. (25%)Part 4: Future Recommendations7. How should SmoothPay protect its business model? How should it handle competitors and imitators inCanada and internationally? (10%)8. What could be the next strategic direction for SmoothPay to deal with the challenges faced by theindustry and continue its growth? Give three specific examples of how IS could be better leveraged forits growth? For each example, describe: 1) the feasibility of these solutions (e.g. highly feasible,moderately feasible or somewhat feasible); and 2) the timeline required to implement the solution (e.g.,long term or in years, mid‐term or in months or short‐term or in weeks). Justify your response. (15%)‐ SMOOTHPAY CASE STUDY 2PERSPECTIVEThis is an individual assessment. Students are advised to attempt all answers with an academic perspective, sothat they attain maximum benefit from the feedback provided. Students are also advised to be proactive inreading and researching beyond and in advance of the scheduled topics, and proceed to consultation and supportservices if and when required.FORMAT REQUIREMENTS The essay should be no more than 8 pages long (excluding cover page and references page), single‐spaced,and written in Times New Roman, size 12 font, with 1 inch page margins. Add page numbers to your report. The essay should be organized into different sections (in the same sequence as the questions above) and eachsection should be given an appropriate heading and question number. Add a brief introduction andconclusion. You MUST include a title page for your essay, with your name, submission date, and instructor’s name. One final page should include the references as specified below and any other extraneous information. The essay must be written in your own words. Excessive quotes, even when referenced, are not desirable. Not complying with each of these instructions will attract a 5% penalty per offence, of the maximum possiblemark.CITATION REQUIREMENTSAt least five references to reputable external sources (scholarly articles) outside of the course content arerequired. It is important that your paper is based on information that you have identified through academic andreputable research. After including references, you may then add your opinion in the paper so long as it is relevantto the subject you have chosen.