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

Electronic trade platforms are not yet part of the model. They are entities, and
usually enterprises, in their own right but a new addition to the supply chain
infrastructure. Initially, they have their place in the linkages between the supply
chain enterprises.

Direction ofAnalysis

The analysis of developments of electronic trade platforms in the agri-food sectors of
the US and Europe builds on two lines of analysis:

1. Analysis of variations in the platform infrastructure.

2. Analysis of development strategies of successful platforms.

Developents and development directions of electronic trade platforms build a basis
for the discussion and estimation of middle-term implications and consequences
from evolving platforms for the agri-food sector’s organization (see section 5).

Analysis of Variations in the Platform Infrastructure

The analysis focuses on variations and developments in the agri-food platform
infrastructure between 2000 and 2002. The aim is to identify some principal
development patterns in the agri-food platform infrastructure as a basis for the
further analysis of successful platform development initiatives. The analysis tracks
and examines development paths of agri-food trade platforms including market
exits and market entries. It provides a dual view: it follows the development paths
of 85 electronic trade platforms that were active in 2000 and identifies the
development history of 36 electronic trade platforms active in 2002, including those
that entered the market during the analysis period. These platforms represent an
almost complete coverage of the platform market. The analysis builds on an earlier
analysis of electronic trade platforms in the meat and cereal markets (Fritz, 2000a,
Fritz, 2000b, Fritz et al., 2001), but includes all major agri-food product lines.

Analysis of Development Strategies of Successful Platforms

The analysis of development strategies of successful platforms aims at the
identification of predominant strategic elements of agri-food platforms that
successfully acted in the 2000 / 2002 period. The analysis follows an elaborate
framework for analysis outlined in the following chapter and builds on the
accessibility of sufficient information regarding individual platform developments.
A successful electronic trade platform would be one involved in actual agri-food
transaction activities that successfully stabilized or even improved its position
between 2000 and 2002. Of the 25 electronic trade platforms that existed in 2000
and remained active during the analysis period, nine matched these criteria and
could be used in the analysis. Electronic trade platforms may follow specific

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



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