Types of Auctions

There are several types of auctions, each with its motives and procedures. The two major types of auctions:

1) Forward Auctions: The sellers use as a selling channel to many potential buyers. Usually, items are placed at sites for auction, and buyers will bid continuously for the items. The highest_bidder wins the items. Sellers and. buyers can be individuals or businesses. For example, the popular auction site eBay.com is a forward auction.

2) Reverse Auctions: In reverse auctions, there is one buyer, usually an organization, which wants to buy a product or a service. Suppliers are invited to submit bids. Online bidding is much faster than conventional bidding, and it usually attracts many more bidders. The reverse auction is the most common auction model for large purchases (in terms of either quantities or price). Governments and large corporations frequently mandate this approach, which may provide considerable savings.

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E-Procurement Cycle

Figure 2.6 illustrates the different steps associated with the overall procurement cycle, from the order placement to the accounts payable, in steps through a web based e-commerce network. It includes customers' inventory and supplier information and is readily accessible at any time and from everywhere. E-procurement allows two-way communication of real-time financial and purchasing information. Management at both the buying and selling end can see what is happening at any given moment and identify trends and problems. A shorter purchasing cycle enables companies to maintain lower inventory levels and respond more quickly to stock-outs. Previous Next

Business Strategy - Strategic Planning Cycle

E-business competitive strategy is normally formed and implemented according to a planning cycle which is called strategic planning cycle . There are four stages in this planning cycle as shown in figure 1.19: Industry and Competitive Analysis It aims to identifying those factors on which the success of an electronic commerce project or business would depend. One way of doing that is to carry out SWOT analysis and study your business as well as the business of competitors. Analysis of online competitor businesses is relatively easy since they are just a few clicks away on the web. Strategy Formulation Based upen study of internal and external business environment and in light of a company's strengths and weaknesses, a competitive business strategy is formed. It may be a strategy of cost leadership, product differentiation or focus. One can also identify ways how information technology can be used to implement/enforce such strategy. The inputs to the strategy formulation process ar...

Disadvantages of EDI

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