Electronic Markets: Benefits, Costs and Risks

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Existing literature in relation to e-marketplaces and IT adoption is used to develop the research questions and formulate the interview questions. The structured case methodology is used to analyse each case and relate the findings to possible explanatory theories.


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Context, mechanism and outcome patterns, identified in each case, are presented. Building on economic market, institutional and network theories the research identifies organising vision theory and community discourse as explanations for organisational legitimation that can circumscribe the use of e-marketplace trading. Six types of community group that influence organisational adoption of e-marketplace technology are identified. The research suggests that the influence of these groups within the organisation, the fit with organisational culture and strategic objectives can prevent or instigate change.

Further, the decision making process supported by the group or group member is more influential in the strategic adoption of the e-marketplace than the ability of the technology to deliver efficiency or transaction processing gains. This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how much their decision making is influenced by organisational and environmental features. The thesis contributes to the discussion on organising vision theory, e-marketplace trading and business value creation. It demonstrates the application of the structured case study methodology to research that is underpinned by critical realism.

Standing, S. How organizing visions influence the adoption and use of reverse auctions. Electronic Commerce Research , 13 4 , Link to article available here. A review of research on e-marketplaces Decision Support Systems , 49 1 , Standing, C.

E-Procurement, Drivers, Benefits, Barriers to e-procurement - ECMC Lectures

The relationship between electronic marketplace strategy and structure. Standing Ed. There are no offers currently available for this product. I would like to report this offer Please select a reason for reporting this offer. Is your question one of these? How much will it cost? How do I pay? Can delivery be arranged? How long will it take and how much will it cost? Where can I purchase, which shops? Do you have stock?

Advantages & Disadvantages of E-Payment | Bizfluent

Can you quote me? May I buy in bulk and do you offer discounts for bulk buying? How to purchase For a product displaying a "Add to Cart" button the product can be purchased directly on PriceCheck's Marketplace. For a product displaying a "View Offer" button clicking the button will direct you to the product on the associated shop's online store where you may complete the purchase.

Cost The price displayed for the product on PriceCheck is sourced directly from the merchant. The price of the product can be seen on PriceCheck. How to pay Our listed shops offer various methods of payments which are displayed on their websites. We only partner with reputable online stores, so think trust, think reliability and think the best possible prices.

Delivery For a product displaying a "Add to Cart" button the product can be purchased directly on PriceCheck's Marketplace. We are pleased to offer our customers door-to-door delivery by courier anywhere in South Africa.

Talkin’ About an Evolution

The delivery time is a combination of the merchants processing time and the days allocated to the courier. The processing time is set by the merchant and can be 1,3,5,7 and newly added 14 or 21 days. For a product displaying a "View Offer" button clicking the button will direct you to the product on the associated shop's online store. Yes, delivery can be arranged as shops offer various delivery methods. All of our shops use the South African Post Office or reputable couriers to deliver goods. Unfortunately, PriceCheck can not clarify how long delivery will take, or how much delivery costs.

However, some shops do display an estimated delivery time and cost on their site. So if the merchant has a processing time of 3 days, we add 5 days to that for the courier and display it as days for delivery. We do not source products. Our platform features offers from merchants who have signed up with PriceCheck.

The Logic of Electronic Markets

You are welcome to search for the product on our website and make contact with any of the merchants featured on PriceCheck for more information regarding their offers. By using computers to help customers order supplies or make airline reservations, such companies have boosted their profits and net worth and permanently altered the competitive dynamics of their industries.

But companies that try […]. We believe that the dynamics that have caused these single-source sales channels to evolve are generic and that many of the single-source sales channels that have proliferated in recent years will ultimately follow the same path toward electronic markets. This evolution of computer-aided buying and selling will disrupt conventional marketing and distribution patterns.

As the competitive landscape changes, some companies will emerge as winners—like those that make electronic markets or those that use them wisely. Others will lose out—like those that are unwittingly eliminated from the distribution chain and those that try to lock in customers through obsolete arrangements. Ultimately, the electronic links between suppliers and customers will have an even more important effect on our economy. By reducing the costs of negotiating and consummating deals and by helping buyers find the best supplier, electronic markets will make it more attractive to buy certain goods and services than to make them.

Therefore, vertical integration will be less appealing to many companies. Networks of companies that perform different steps in the value-added chain, also known as value-adding partnerships, may well become a major industry structure. Beginning in the s, a number of suppliers created single-source electronic sales channels. Some of those early channels failed, but others have grown and changed. The electronic sales channels that work do so because they give customers something of real value. For one thing, having on-site terminals is often simply more convenient than contacting a sales representative.

Also electronic sales channels eliminate much of the paper handling and clerical work associated with making a purchase: processing the order, billing the customer, tracking the delivery, and accounting for the sale require many people and take a long time. Electronic sales channels streamline much of that. Some systems let customers reduce their materials inventories by arranging just-in-time deliveries of components. All of this translates either directly or indirectly into savings for the customer. The advantages to the seller can be even more substantial. Customers who become accustomed to the convenience of electronic terminals on their premises give the vendor a captive audience.

Competitors must bend over backwards to lure customers away. They would rather be able to compare a number of competing products to be sure of getting the product features they want, at the best price. Electronic markets offer cross-company electronic connections, just as single-source sales channels do, and therefore give customers the same convenience.

But they include offerings from competing suppliers. Not only do customers have electronic connections to their suppliers but they can also choose which supplier they want to use. If the technology exists to create electronic markets and customers want them, it is just a matter of time until services arise to meet that need. They risk losing their customer franchise, but if they try to keep their customers captive too long, they risk losing those customers entirely.

Ebook Electronic Markets: Benefits, Costs And Risks

Consider what happened in the airline industry. In , United Airlines created a single-source sales channel called Apollo that allowed travel agents to book flights on United. The system provided a competitive advantage for a while, but then American Airlines did United one better.


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It created Sabre, a system of its own—but one that soon included flights from other airlines. Travel agents of course liked the range of choices. The airline companies had moved from single-source sales channels to electronic markets for competitive reasons, but the markets they created were biased. The defunct Civil Aeronautics Board intervened. To protect consumers and the smaller airlines, it required Sabre and Apollo to eliminate the bias in the listing order.

Making an unbiased electronic market is a potentially profitable business in its own right. For some organizations, like Inventory Locator Service, Inc. Not long ago, when an airplane needed a replacement part, a repair person would have to call parts dealers and brokers to see if they could provide the item. The search was slow and somewhat random because it relied heavily on personal relationships.