The critical success factors for participation in
an e-marketplace are: Background Information: Before deciding to
become a member of a marketplace, it is necessary to gather information
on the operating company or consortium. Critical Mass and Transaction Volume: The promoter
of the marketplace has to be able to attract enough participants to
generate sufficient volume to make the whole endeavour viable.
A critical mass must be achieved to attract the major players of the
industry. It is also important to achieve transaction volumes
whose levels are comparable to total transaction volumes of the traditional
market. Integral Functionality: To add value
to the process, these sites must have a minimum of functionality including
the capacity to allow for negotiation, close deals, manage transactions,
exchange information, etc. in ways that are not possible in a traditional
market. Flexibility: The marketplace must have the capacity
to grow, change, incorporate new business rules, accept new actors,
and swiftly adapt. It is important to remember that more functions
offered by the site makes it more difficult to be flexible. Controlled Operation Costs: Operational and
investment costs of the e-marketplace cannot exceed the benefits that
the whole market can generate. Consequently, all costs of the
marketplace will be borne directly or indirectly by their users. Generate Genuine Value: One simple truth that
cannot be forgotten is that the e-marketplace will be viable if it
can add value to all participant firms, meaning that the e-marketplace
must generate more value at equal market costs or generate similar
value at lower market costs.
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