Despite the widespread attention given to consumer marketing on the Internet, the market for business-to-business commerce on the Internet potentially huge and an estimated ten times the volume of Internet sales of consumer goods. Electronic business communities begin to entire industry to link supply chains, reducing the long-standing barriers between different participants. GE Trading Process Network (TPN) allows the company to make more than a billion dollars worth of business with mo … Read more »

Despite the widespread attention given to consumer marketing on the Internet, the market for business-to-business commerce on the Internet potentially huge and an estimated ten times the volume of Internet sales of consumer goods. Electronic business communities begin to entire industry to link supply chains, reducing the long-standing barriers between different participants. GE Trading Process Network (TPN) allows the company to make more than a billion dollars worth of business with more than 1,400 suppliers around the world. The ultimate goal is to push the suppliers towards GE settlement similar businesses with their suppliers. A multi-level business with different vertical and horizontal interactions taking shape. Factors influencing the growth of electronic business communities include lower initial cost, less complexity, greater industry supply and market penetration and increased flexibility. Challenges for the realization of this potential are concerns about the safety and privacy, certain legal and regulatory considerations, concerns about the reliability and scalability, and customer resistance and lack of knowledge. Electronic business communities require cooperation and open exchange of information – the essence of
“community.”
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from
Ramon J. Peypoch
Source: Business Horizons
4 pages.
Publication Date: Sep 15, 1998. Prod #: BH042-PDF-ENG
Case for electronic business communities HBR case solution

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