Reintermediation strategies in B2B electronic commerce

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					Reintermediation strategies in
 B2B electronic commerce
  Repoter: Po-he Lin
  Date:2001/10/18
           IDR cycle
 (I)Intermediation
 (D)Disintermediation
 (R)Reintermediation
                   IDR cycle (con’d)
   Intermediation phase
    A new company enter into the value chain that
    connects buyers and suppliers. In this phase
    companies typically adapt pure electronic or
    information-focused intermediation strategies.
                             Strategic phases
     Traditional       Intermediation Disintermediation Reintermediation
                            EC-only          EC-only           EC-only
                         Intermediaries   Intermediaries    Intermediaries




        Traditional       Traditional        Traditional       EC-able
      Intermediaries    Intermediaries     Intermediaries   Intermediaries
                   IDR cycle (con’d)
   Disintermediation phase
    With the emergence of the internet , The
    EC-only intermediaries expanded and
    replace those traditional intermediaries.
                             Strategic phases
     Traditional       Intermediation     Disintermediation Reintermediation
                            EC-only             EC-only           EC-only
                         Intermediaries      Intermediaries    Intermediaries




        Traditional       Traditional           Traditional       EC-able
      Intermediaries    Intermediaries        Intermediaries   Intermediaries
                   IDR cycle (con’d)
   Reintermediation phase
     Reintermediation refers to the process
    through that a once disintermediated player
    is able to re-enter the value-added chain that
    support buyer and seller transaction.
                             Strategic phases
     Traditional       Intermediation     Disintermediation Reintermediation
                            EC-only             EC-only           EC-only
                         Intermediaries      Intermediaries    Intermediaries




        Traditional       Traditional           Traditional       EC-able
      Intermediaries    Intermediaries        Intermediaries   Intermediaries
           Factors that enable
            Reintermediation
   Imitation and Weak Appropriability
    – EC system is not easy to patent and can be readily
      imitated.
   Ownership of co-specialized assets
    – It is hard for EC-only intermediaries to acquire the
      necessary co-specialized assets.
   Economies of scale
    – EC-only intermediaries will not succeed if they cannot
      achieve economies of scale.
Firm Reintermediation Strategies
          ~ American Travel Industry

  Alliancing for technology development
  Portfolio partnering
  Other strategies involving technological
   focus,market timing,and preexisting
   industry expertise
         Firm Reintermediation
         Strategies (con’d)
   Alliancing for technology development
    – An alliancing for technology development
      strategy involves a decision to develop all the
      necessary EC applications jointly with only one
      technology provider.
    – American Express Travel secured an
      exclusivity agreement for a partnership with
      Microsoft.(AXI, American Express Interactive)
        Firm Reintermediation
        Strategies (con’d)
   Portfolio Partnering
    – Firm decided to work concurrently with a
      number of technology providers , each
      responsible for developing one component of
      its electronic commerce solution.
    – Carlson Wagonlit Travel partners with
      TravelNet , Sabre (BTS) and E-Travel.
        Firm Reintermediation
        Strategies (con’d)
   Other strategies involving technological
    focus,market timing,and preexisting
    industry expertise (Know-How)
    – Microsoft offered its services directly to
      customers (Expedia Travel),existing travel
      intermediaries(American Express Travel), and
      travel suppliers(Northwest Airlines)
                 Conclusion
   Traditional nontechnological intermediaries
    have a greater opportunity to reintermediate
    in the long run , and even to strengthen their
    position in the market as EC-able
    intermediaries.

				
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