B2B Issues in Web-Based Marketplaces Myopic View of B2B Competition Companies compete with each other for corporate clients Zero-sum game with competing companies Only a partial view of the complete picture Supplier A Supplier B Corporate Client Supply Chain View of Competition
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Source: Electronic Business Today, August 1997, p. 32
3Com saves over $100 million per year by automating supply chain purchases and support. Pre-net, each large sale initially required a 3Com vendor to visit a site.
Source: Kaplan, S. and Sawhney, M., “E-Hubs: The New B2B Marketplaces,” Harvard Business Review, May-June 2000, p. 306
Collins, P., “E-logistics 2000: Re-thinking the supply chain,” Management Services, Jun 2000; 44 (6) pg. 6-10.
auction … gives potential
buyers two ways to work
ONSALE.Com emphasizes auctions for goods that are commodities. Their inherent transactability is very high in this medium.
markets distinguish First
Auction from some of the
other players in the market.
Its “instant auctions” are
aimed at introducing
for both buyers and sellers.
takes RFPs and bids
for procurement via its
It utilizes the First Price
Sealed Bid mechanism
for its auctions.
This kind of approach is increasingly common when the goal is to
achieve the benefits of a very large marketplace, with many participants.
Kentucky is also applying a similar approach to “fire sales” of surplus
property. This levers efficiency by increasing the potential for liquidity.
used by GE TPN.
In B2C commerce, search costs are somewhat reduced. In B2B commerce, this effect is increased. No longer do you need to coerce quotes or find the right supplier at the right time.
A savvy entrepreneur
made use of the
web to disintermediate
investment bankers -- by
running an electronic
initial public offering
highly successful follow up
company portrayed in the
Allows traders to list P/Q combinations in terms of their “willingness to trade”, a new utility dimension