Session 9
BASICS OF THE ELECTRONIC MARKETS

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Session Objective: Managing in the Electronic Marketspace

The cases (Aucnet and Inventory Locator Service) deal with the establishment of an Electronic Market Access Forum (EMAF) in which multiple buyers and suppliers operate on a common platform (electronic marketplace). We will explore the implications for the global marketplace. We will consider new markets in Cyberspace..

Readings:

Cognitive Reapportionment - John Sviokla and Benn Konsynski

Also

Managing in Marketspace - Jeff Rayport and John Sviokla

Also

Strategic Control in the Extended Enterprise - IBM Systems Journal

Prepare:

AUCNET

The AUCNET: TV Auction Network System (9-190-001) case to examines the factors in the success and failure of these platforms connecting buyers and suppliers. The setting is the used automobile sales market in Japan. The organization is considering making initiatives into other industries and other countries (e.x. United States) You will examine the special situation in the Japanese auto market and compare this with the dynamics in the US market. Assess what the protagonist Mr. Fujisaki, should do to 1) gain more share in his current market, 2) move into other markets (goods) in Japan, and 3) try to move AUCNET to the American shores. Market conditions and buying and selling behaviors are unique in the Japan setting, and you should contrast that market with the U.S.

Study Questions

1) How would you characterize the used car market in Japan? How does it differ fron what you know about the U.S. used auto marketplace? What are the key success factors for "auctioning" of used automobiles?

2) What role can information technologies play in creating value in the trading process? What value added is offered from the perspective of the buyers and the sellers?

3) What advice would you give Fujisaki with respect to AUCNET's operations in Japan? Should he target increased market share in used autos or work on other markets in Japan?

4) What factors should Fujisaki consider in evaluating the implementation of AUCNET into the U.S. market?

5) How would you address the issues raised by C.Itoh in the case?

6) What is the role of information technologies in changing the relationship between buyers and sellers - providing value to each? What are the dangers in linking buyers and sellers using information technologies?

Don't forget to visit - Autotrader

How would you compare Aucnet with Manheim?

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INVENTORY LOCATOR SERVICE

The Inventory Locator Service (ILS) (N9-191-008) case will be used to examine the factors in the success and failure of these platforms connecting buyers and suppliers. The setting is the aircraft parts industry. The organization is considering making initiatives into other industries (including nuclear reactor parts) following success in the parts market. We will examine the decision to enter these electronic market forums and the conditions and qualifiers that should be considered.

Questions:

1. How well has ILS done in establishing its role as a market facilitator? What policies and decisions were critical in their evolution?

2. What will it take for ILS to be successful in the other targeted markets? How would you assess the readiness of the marine, power and telecommunication equipment markets?

3. What advice would you give to Fred Meyer?

4. What does it take to be, and to build, an electronic market access forum (EMAF)?

Visit the following as we will discuss this

• AUCNET - Yes, it is gone!
• Autotrader
• Manheim

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Copyright Notice - This material was authored by Benn Konsynski to support the course Patterns of Electronic Commerce. All rights are reserved. © Benn Konsynski, 1999

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