E-Markets Need Some Soul-Searching
So, what should we do now?" I was sitting across from the CEO of a once-hot, now-struggling electronic marketplace.So, what should we do now?" I was sitting across from the CEO of a once-hot, now-struggling electronic marketplace. His office was surprisingly opulent, a legacy of happier times. The e-market, like most of its brethren, had spent aggressively, racing to become the industry leader. But it hadnt worked out that way. Participants were slow to join and suppliers even slower. Two well- funded industry consortia had arisen in its space, and most industry players expected them to dominate. And, most tellingly, the participants that had joined this CEOs independent marketplace were not experiencing the promised benefits. In many industries, the conventional wisdom, initially dubious of consortia e-markets, has now declared them clear victors over the independent e-markets.
Consortium-based e-markets would certainly seem to enjoy some advantages. They start life with strong funding and ready access to a set of core industry players. But, even with those advantages, the consortia are running into the same problems as the independents. Many have burned through much of their original funding. More critically, their participants arent realizing the promised benefits, either.