Determining which marketplace to compete in is very important to know in today’s business world. According to Gary P. Schneider, author of Electronic Commerce, 9th edition, there are 5 different marketplaces that businesses can compete in.
 |
| http://ajsmarowsky.tripod.com/WEB260_ test2/chapter5_marketplaces.html |
1. Private Stores
2. Customer Portals
3. Independent Industry Marketplaces
4. Consorita- sponsored marketplaces
5. And Private Company Marketplaces
Each marketplace has its own advantages and disadvantages and companies are wanting to know which marketplace is the most attractive to enter as well as which marketplaces are your competitors entering.
According to Gary P. Schneider, an industry consortia-sponsored marketplace is a marketplace formed by several large buyers in a particular marketplace. Electronic Commerce 9th edition book states that consortia- sponsored marketplaces have few buyers but many sellers and also, have high buyer control and foxed pricing. One example of a consortia-sponsored marketplace is Covisint. Covisint was created in 2004 by a consortium of Daimler Crystler, Ford, and GM. All of them decided to sell Covisint to an independent operator that had no ties to the founding companies.
A buyer would want to participate in an industry consortium instead of setting up its own private company marketplace because, for one reason, the industry consortia is less of a buyer controlled industry and also prevents the sellers from having to bid on major buyers; business. This gives the consortia more buyer control and also fixed pricing. Instead of only having one buyer, the consortia allows for more buyers than the private company marketplace.
In essence, there is no perfect industry marketplace to enter. Each marketplace has different advantages and disadvantages that fit each company. Finding the perfect fit for your company is the trick for your company’s success.
No comments:
Post a Comment