AUCNET's Third Challenge - Critical Success Factors for New Entrants Using Electronic Markets -
نویسندگان
چکیده
AUCNET is famous worldwide as one of the pioneers that developed an electronic market for used cars. It uses a unique satellite auction system. In 1985, AUCNET entered successfully the used-car market in Japan. In that period the used-car market was booming, so AUCNET could easily introduce their market system and could overcome the resistance from the traditional market. After a while AUCNET also entered the used-car market in the US. AUCNET faced some problems there. These problems were related to the different used-car market structure and the dependencies of the car dealers. At the moment AUCNET faces a third challenge: it tries to enter flower market in Japan. However, the flower market is already in mature stage, and has been implemented a sophisticated marketing chain with many participants, i.e., growers, wholesalers and large retailers. AUCNET needs to develop another institutional base and entering tactics for successful entrance to flower market. Much has been written about the first challenge of AUCNET. However it has been not so much discussed how the state of used-car market affects AUCNET's strategy. Furthermore, it has been almost neglected what tactics to enter AUCNET used to enter the market and how these tactics affected the results. Most of the literature emphasized on the benefits provided by AUCNET. However, many benefits associated with electronic markets are realized only in the case that the market has achieved a critical mass of participants. In this article we examine the relationship between efficiencies and a critical mass. We compare the AUCNET's Japanese used-car and the flower case, and highlight the influences of the status of market and entering tactics. We conclude that the in-depth analysis of the market structure and the tactics to achieve a critical mass are the most important issue to a successful entrance. Keyword: AUCNET; Efficiency; Institutional Base; Critical Mass; Entering Tactics; Successful Entrance
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