CBVMCommunication & the Biblical View of Man
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Executives in one industry, which is held hostage by a dominant supplier of vital inputs, hope to use the combined market power of its CBVM to develop alternative sources.
But little collaboration has occurred so far, though every CBVM we studied has offered its founders a formal role in shaping the business--which seems to suggest that they would be willing to give those CBVMs a large volume of their transactions, to share some data, and to collaborate with competitors.
A CBVM that persuades its founders to contribute their talent, capital, and brand names and exploits its strategic relationships will find itself in a stronger position than any independent competitor could hope to achieve.
In the first, suppliers, distributors, and other participants in the supply chain (such as original-equipment manufacturers and assemblers) are invited to help found a CBVM.
A CBVM that can achieve all three should ultimately generate value that its founders couldn't find elsewhere and--at last--acquire the liquidity once regarded as certain.
Compared with other kinds of B2B marketplace, CBVMs have been thought to enjoy an inherent advantage: a high degree of liquidity resulting from the founders' aggregate expenditures.
No doubt it isn't fair to judge the success or failure of the CBVMs on the basis of early liquidity.
A second flaw in the business strategy of the CBVMs is the failure of some buyers-only consortia to develop robust and attractive value propositions for suppliers-after having told them to conduct all future sales through the marketplace.
Fortunately, the early limitations of the CBVMs haven't eclipsed their compelling advantage; access to the founders' collective wisdom and influence has much more value than the price efficiencies, purchase process savings, and neutrality of independent vertical marketplaces.
Price transparency and the savings that result from aggregating the expenditures of many companies on a common purchasing platform are not a distinct of CBVMs.
Like private marketplaces and some other e-procurement facilities, CBVMs both enable users to automate the requisition-to-pay process and enforce improved compliance measures that can reduce rogue spending.
The fear that many companies feel about sharing information with fellow marketplace participants against which they ordinarily compete is the biggest hurdle facing CBVMs and many other kinds of on-line marketplace.