November 11, 2005
TRC Boardroom, Main Building, CSB
Parker Wheatley, Economics
After the Bubble: The Survival and Evolution of Internet Markets for Business-to-Business Exchange
Recent theory predicts that ownership structure of an Internet markets matters in the success of its adoption. Specifically, buyer and seller ownership or affiliation with an e-market is pivotal for survival. For example, in the dairy industry, large buyers in this industry own the Internet market for dairy product. Similar results are seen in the steel industry and in automobile parts supply. This paper will review some of this underlying theory and provide cases and ‘screen shots’ of the markets that survived. The paper goes on to investigate how other firms ‘morphed’ in this competitive environment to play other profitable roles in facilitating B2B commerce. Specifically, the paper provides a diagrammatic representation of the evolution of Internet markets for agriculture as well as specific examples of the different business models used in surviving the early and turbulent years of Internet markets.