CLOSING CASE STUDY ONE (p. 151) WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACE In this first case study your students will explore the use of an e-marketplace in the B2B commerce business environment. But this isn’t an ordinary e-marketplace. It supports only one buyer, Volkswagen AG and it requires all its suppliers to use it. Volkswagen AG is so big that it can build its own private e-marketplace and require all suppliers to participate in it. QUESTIONS Volkswagen operates its own proprietary B2B e-marketplaces in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace? DISCUSSION Potentially, Volkswagen could be missing out on using a new supplier entering into the market. The new supplier would go to a generic e-marketplace and start its advertising campaign. To attract the attention of Volkswagen, the new supplier would have to go directly to Volkswagen. As well, Volkswagen may be missing out on some demand aggregation because it does not let other buyers participate in its e-marketplace. From an advantage point of view, there are tremendous benefits. Volkswagen can determine how the e-marketplace will operate. It can gather vast amounts of competitive intelligence on it suppliers. And it has greatly reduced supplier power because it is the only buyer. When Volkswagen needs a new part design, it uses VWsupplygroup.com to get its suppliers involved in the design process early. This creates a tremendous amount of collaboration. What are the advantages to the suppliers and to Volkswagen in doing so? DISCUSSION The suppliers receive the advantages of working closely with one of their biggest buyers. That way, they can be sure to develop the part exactly as Volkswagen wants it. As well, the suppliers receive the benefit of completely understanding what Volkswagen wants and why it wants it.
CLOSING CASE STUDY ONE (p. 151) WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACE In this first case study your students will explore the use of an e-marketplace in the B2B business environment. But this isn’t an ordinary e-marketplace. It supports only one buyer, Volkswagen AG and it requires all its suppliers to use it. Volkswagen AG is so big that it can build its own private e-marketplace and require all suppliers to participate in it. QUESTIONS Volkswagen operates its own proprietary B2B e-marketplaces in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace? DISCUSSION Potentially, Volkswagen could be missing out on using a new supplier entering into the market. The new supplier would go to a generic e-marketplace and start its advertising campaign. To attract the attention of Volkswagen, the new supplier would have to go directly to Volkswagen. As well, Volkswagen may be missing out on some demand aggregation because it does not let other buyers participate in its e-marketplace. From an advantage point of view, there are tremendous benefits. Volkswagen can determine how the e-marketplace will operate. It can gather vast amounts of competitive intelligence on it suppliers. And it has greatly reduced supplier power because it is the only buyer. When Volkswagen needs a new part design, it uses VWsupplygroup.com to get its suppliers involved in the design process early. This creates a tremendous amount of collaboration. What are the advantages to the suppliers and to Volkswagen in doing so? DISCUSSION The suppliers receive the advantages of working closely with one of their biggest buyers. That way, they can be sure to develop the part exactly as Volkswagen wants it. As well, the suppliers receive the benefit of completely understanding what Volkswagen wants and why it wants it. commerce
closing_case_study-group_assignmnent_mis.docx