Case Study 5:1 and 2

CHAPTER FIVE

CLOSING CASE STUDY ONE
WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACE

1. Volkswagen operates its own proprietary B2B e-marketplace in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace?

2. When Volkswagen needs a new part design, it uses VWsupplygroup.com to get its suppliers involved in the design process early. This creates a tremendous amount of interorganizational collaboration. What are the advantages to the suppliers and to Volkswagen in doing so?

3. How is Volkswagen’s VWgroupsupply.com B2B e-marketplace an example of a vertical e-marketplace implementation? How is it an example of a horizontal e-marketplace implementation? Why is it necessary that Volkswagen combine both of these e-marketplaces into one e-marketplace? What would be the drawbacks to creating two different e-marketplaces—one for suppliers of direct materials and one for suppliers of MRO materials?

4. To make effective purchasing decisions, Volkswagen’s purchasing agents need business intelligence. What kind of business intelligence does iPAD provide to purchasing agents for carrying out their tasks? What additional kinds of business intelligence not discussed in this case could Volkswagen’s purchasing agents take advantage of to make more effective decisions?

5. IPAD manages the workflow for purchasing agents. Describe how iPAD manages this process including information provided, steps to be executed, and the presentation of information.



CHAPTER FIVE
CLOSING CASE STUDY TWO
E-BUSINESS TREND: FAR-EAST E-COMMERCE EXPLOSION

1. According to Porter’s Five Forces Model (from Chapter 1), how would you characterize the competitive space in which Cyworld and Myspace operate according to buyer power, supplier power, threat of substitute products or services , threat of new entrants, and rivalry among existing competitors? Pick one of Porter’s Five Forces and describe what Cyworld has undertaken to shift that force in positive way in its direction.

2. In our discussion of customers and their perceptions of value, we noted that customers tend to categorize products and services as either convenience or specialty. How would you characterize the products and services on Consumer to Consumer e-commerce auction sites such as Taobao and eBay- convenience, specialty, or perhaps a combination of the two? Justify your answer.

3. What sort of payment options does eBay provide? You may have visit to eBay’s site to learn this information. If Taobao were to enter the U.S market, would it have to offer similar payments options? That is, are these payment options entry barriers? Is there room for innovation in the payments space? If so (and the answer is yes), describe it.

4. Privacy is overriding concern today on the internet. At sites like Cyworld and Myspace, some people often divulge too much information such as full name, an address, and even a phone number. From an ethical point of view, do you believe that social networking sites have an obligation to protect users from cyber stalkers? If you believe that the answer is no, justify your answer. If you believe the answer is yes, describe the steps can be undertaken to protect users.

5. One key to consumer retention is creating a “sticky” Web site. Review the virtual environments for both Cyworld and Myspace. Which do you think is more “sticky” and better retains comsumers? What is your definition of “sticky”?