Virtual market space & e-market ecosystem
By Prabath Withanage : 2007
This article is based on an assignment that I submitted for the executive MBA under the subject of Ecommerce
virtual market space
Is a virtual network of interactions and relationships over which information, products, services, and payments are exchanged. It is equivalent to a physical marketplace except is Web-based.
Components of Virtual Marketspace-
Electronic Commerce (e-commerce): buying and selling goods and services electronically
Electronic Business: executing all the firm’s business processes with Internet technology
Intranet: private, secure business network based on Internet technology
Extranet: extension of the intranet to authorized external users
Difference between the traditional marketplace and the emerging market space
traditional market place
Content: Products/goods
Context: Physical Interaction
Infrastructure: Shops, Warehouse
emerging market space
Content: Information
Context: Online
Infrastructure: Internet, Intranet, Extranet
stages of evolution of an e-market ecosystem
There are 4 stages of evaluation of the e-market ecosystem. Those stages are shown below
Birth
Expansion
Authority
Death
Stage 1- Birth
In this stage, businesses must maximize customer value and also have to find new values in an efficient way. Also must protect ideas.
Stage 2- Expansion
When the business is expansion they need to attract more customers to increase market share. And also they need to build some alliances with other businesses and make new partners, close with suppliers. In the meantime make sure to maintain market standards.
Stage 3- Authority
In this stage, the business becomes mature and can lead the market. This is identified as co-evolution leadership. In this stage, the business makes a vision for the future and has to maintain strong bargaining power.
Stage 4- Death
In this stage, the business needs to decide to introduce new innovations or close the business product or services. If they decide to innovate then need to work with innovators and also develop and maintain high barriers to competitors.