Page 283 - Electronic Commerce

Chapter 5

Industry Consortia-Sponsored Marketplaces
Some companies had relatively strong negotiating positions in their industry supply
chains, but did not have enough power to force suppliers to deal with them through a
private company marketplace. These companies began to form consortia to sponsor
marketplaces. An industry consortia-sponsored marketplace is a marketplace formed by
several large buyers in a particular industry.
258 Figure 5-12 summarizes the characteristics of five general forms of marketplaces that
exist in B2B electronic commerce today. The information in the figure comes from several
sources, but the structure of the figure is adapted from one presented by Warren Raisch, a
Web marketplace consultant, in his book The eMarketplace.

Seller-controlled industries Buyer-controlled industries

Private stores Customer Independent Consortia- Private company
on sellers' sites portals industry sponsored marketplaces
marketplaces marketplaces
One seller Few sellers Many sellers Few buyers One buyer
Many buyers Many buyers Many buyers Many sellers Many sellers
Cisco, Dell Grainger ChemConnect Covisint, Harley-Davidson
Exostar Supply Net

Few products Catalog based Offer auctions Buyer control Sellers bid on
major buyers'
Fixed pricing Fixed pricing Dynamic pricing Fixed pricing business

Adapted from: Raisch, W. 2001. The eMarketplace, p. 225.
FIGURE 5-12 Characteristics of B2B marketplaces
Although the figure shows five distinct B2B marketplace categories, the lines between
them are not always clear. For example, Dell has from time to time sold other companies’
products on its private store site, which would make it more like a customer portal than a
private store. As the B2B marketplace industry matures, it is unlikely that one type of
marketplace will become dominant. Most B2B experts believe that a variety of
marketplaces with the characteristics of these five general categories will continue to exist
for some time.

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