The original concept of these exchanges was for

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: their presence in the marketplace through media advertising, industry marketing programs, e-mail discount offers, and other high-visibility activities. The original concept of these exchanges was for independent operators to facilitate interactions between buyers and sellers in fragmented markets. But new developments occur quickly in electronic commerce. Most recently, in many industries the major buying companies in that industry have set up and are operating their own exchanges –– in the automotive industry, high-tech manufacturing, retailing, agri-business, and many others. While these “buyer-centric” exchanges can no doubt be effective, there is a growing concern among suppliers that their purpose is not to broaden the pool of suppliers but to enable the biggest corporate buyers to exert their combined clout over their smaller suppliers and extract lower and lower prices. Using e-procurement tools to achieve volume leverage is discussed in more detail in the next section. With extensive competition both within and between exchanges, suppliers...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online