Developments and Development Directions of Electronic Trade Platforms in US and European Agri-Food Markets: Impact on Sector Organization



M. Fritz, et al. / International Food and Agribusiness Management Review Volume 7, Issue 1, 2004

in the agri-food sector. The analysis of emerging platform models allows for taking
into account the actual structure of the agri-food trade platform landscape. The
platform models “Neutral verticals”, “Downstream re-intermediaries”, “Ag output
subsectorials”, and “Large consortia” are specific occurrences of distinguished
criteria combinations and are derived from a cluster analysis using the framework

13


Table 4: Emerging Platform Models and Stra

egic Advantages___________________

Platform
models
(Fritz, Hausen,
Schiefer 2003)

Characteristics

(Fritz, Hausen, Schiefer 2003)

Strategic advantages

“Neutral
verticals”

Neutral ownership

Along whole chain

Worldwide

Cooperation with otherETS

Sellerbuyer nm

(n>>mnι<<m)

Transaction support

Static coordination
Mechanism

Mixed coordination
Mechanism

Fee for transaction____________

Market maker in spot markets
(neutrality generates trust; see Bailey,
Bakos 1997)

Market organization and coordination

Aggregation and bundling

“Downstream re-
inter-mediaries”

Fee time-based

Single market participant

Agrifoodproducts in general

Stage specific

Bottom-up

Sellerbuyernm (n>>m;n<<m)

Static coordination mechanism

Combination of market expertise and
existing business relationships with
efficiency potential of electronic
commerce

“Ag output sub-
sectorials”

Specific products only

Fee for transaction

Stage specific

Mixed coordination mechanism

Specialization

“Large consortia”

Non-food products

Consortium

Supply chain management

Agrifoodproducts in general

Bottom-up

Cooperation with other ETS

Sellerbuyernm (n>>m;n<<m)

Dynamic coordination
mechanism

Mixed coordination mechanism

Efficiency advantages due to joint
technology development (outsourcing)

Critical mass of platform participants
to be reached more quickly

Market power as supported by group of
existing industry players

Acts according to members’ interests

Elimination of competitors

Strengthens members compared to
non-members

Combination of market expertise and
existing business relationships with
efficiency potential of electronic
commerce

Example from other industries:
Covisint (consortium platform, car
manufacturers)_____________________

© 2004 International Food and Agribusiness Management Association (IAMA). All rights reserved.



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