B2B Marketspace

B2B Marketspace B2B has set hearts racing in the business domain with many businesses rushing to incorporate B2B e-marketplaces into their business strategies. In furrow some feed failed to make the connection between B2B e-marketplaces and strategy, accept that B2B is a strategy in itself. Overall, very few businesses have successfully leveraged the possibilities offered by B2B e-marketplaces to produce sustainable emulous advantages. What possibilities do B2B e-marketplaces offer business, are there potentially negative set up and how do B2B e-marketplaces effect strategy? B2B e-marketplaces allow businesses to leverage the inherent qualities of the Internet to make supply chains more than efficient, providence cadence and money. Buyers are attracted to B2B e-marketplaces by the promise of lower prices and more efficient trading. Sellers are attracted to potential efficiencies such as time savings and better use of inventories (Ramsdell, 2000 and Red Herring, 2001). Those are distinctly outcomes that can produce operational effectiveness; thus by entering B2B e-marketplaces businesses may have an opportunity to bring rivalrous advantages based on cost and price advantages (Porter, 2001).

A agonistic advantage based on B2B e-marketplace delivered operational efficiency mustiness be sustainable to deliver considerable term value. However, sustainability requires that the competitive advantage be difficult for competitors to copy and substitute (OKeeffe, 2001).



operational efficiencies gained through involvement in B2B e-marketplaces are not proprietary to any one firm, most firms that engage in B2B e-marketplace trading allow for develop similar efficiencies. Thus over the farsighted term, as more participants in any one effort become involved in B2B e-marketplaces, the competitive advantages experienced by first movers will disappear. B2B e-marketplace will not in themselves develop competitive advantages based upon operational efficiencies as the improvements that B2B e-marketplaces will delivered will be shared throughout an industry over the long term (Porter, 2001).

The possibility that B2B e-marketplaces will increase barriers to...

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