This paper looks into several aspects related to the acquisition of a data warehouse by Recreational Equipment Inc. (REI). REI’s Data Warehouse The term ‘data warehouse’ has two components. The first component is the term ‘data’ which refers to the record. There have been little efforts among IT academic circles to distinguish the use of the word data from the use of the word information. In a broader sense, data refer to unprocessed records, while information is the product of data analysis. The second component of the term ‘data warehouse’ is the word ‘warehouse’. In this case, warehouse is a store or a place used for storage. These two components bring about a special meaning used in IT circles. A data warehouse is a physical or virtual storehouse of electronic information. In the past, organizations used physical warehouses to store files and folders used for their business activities. After the advent of IT tools for business, companies started building large storage facilities known as data warehouses to store electronic information. REI is building a warehouse for the following reasons. First, the company’s data storage requirements have been on the rise because of the growth in its membership. In this regard, the quantity of records the company stores grows with time. The second reason is that the company wants to increase the accuracy of the information in its hands regarding the outdoor activities of its members. The company needs this information for planning and for increasing its value for the members. Third, the company needs to increase the overall efficiency of its services using information-based approaches to business management. A data warehouse will make it easy for the company to manage information in its hands and to execute data mining activities efficiently. Consequently, the company wants to build a data warehouse to increase its business efficiency. Disadvantages of Consumer Cooperatives Compared to Traditional Firms The disadvantages of consumer cooperatives in comparison to traditional firms are as follow. First, consumer cooperatives reduce the choices that an individual member enjoys. As opposed to them, traditional firms usually strive to give consumers the widest range of products. Their intention is to maximize the chances that all consumers who come to the store find what they want. However, consumer cooperatives focus on giving their members the best value. This usually means that the members cannot access the full range of products within a specified category. Secondly, consumer cooperatives are driven by the need to give members the best value for their money. The result is that they are not as efficient as traditional firms, which usually do their best to maximize profits. Companies that operate based on the profit motive tend to be more efficient because operational inefficiencies reduce their margins. The third disadvantage of consumer cooperatives compared to traditional firms is that they depend on long-term supply contracts with suppliers. While these contracts guarantee the availability of products, it exposes the consumer cooperatives to dumping of the products. A company holding a long-term supply contract with a