2nd GLOBAL CONFERENCE on BUSINESS, ECONOMICS, MANAGEMENT and

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The Development of Electronic Commerce in Agribusiness – The Polish Example 2nd GLOBAL CONFERENCE on BUSINESS, ECONOMICS, MANAGEMENT and TOURISM, 30-31 October 2014, Prague, Czech Republic 製作者:10514625 王俊淵、10114183 郭韋辰

Outline Introduction The development of electronic commerce as a complex and evolutionary phenomenon The development of electronic commerce in Polish agribusiness Conclusions

Introduction Information technologies enable many companies to achieve competitive advantage over their competitors by cutting costs, and entering new markets. These changes also apply to agribusiness, which in many countries is an important sector of the economy. Agribusiness is also an important sector of Polish economy, a country that after the period of economic transition, in 2004 became a member of European Union.

The development of electronic commerce as a complex and evolutionary phenomenon Zwass (1998) defines electronic commerce as the sharing of business information, maintaining of business relationships and conducting business transactions by means of telecommunication media. The main types of electronic commerce transactions are Business-to-Business and Business-to- Consumer transactions. There are significant differences between these two types of transactions. B2B transactions are of larger volume and value, higher risks, less buyers, and different way of making purchasing decisions comparing to B2C transactions. B2B transactions are also prevailing in agribusiness as they are conducted between enterprises representing successive levels of agri-food chain.

The development of electronic commerce as a complex and evolutionary phenomenon Bakos (1991) distinguishes between two different ways of conducting B2B e-commerce which are the information links, which are mutual investments of the two companies in a solution of electronic communication between them, and the electronic marketplaces, which are represented by inter-organizational information systems that allow the exchange of information between many sellers and many buyers. Well developed and effective structures of agricultural markets of developed countries are less susceptible to the institutional changes caused by electronic commerce, comparing to developing countries with less effective market structures and fragmented market. Despite this, in the USA and Europe efficient electronic agricultural markets emerge.

The development of electronic commerce in Polish agribusiness In Poland, there are still significant differences in the use of the Internet in terms of place of residence and age. Slower Internet connections in rural areas are not a factor encouraging online shopping by consumers. The development of electronic commerce in Poland can be compared with one of the most developed in this respect country in the EU which is Finland. According to Eurostat, in 2013 the percentage of individuals who ordered goods or services for private use over the Internet in the last three months was 23% in Poland and 49% in Finland.

The development of electronic commerce in Polish agribusiness

The development of electronic commerce in Polish agribusiness According to the data of the Polish Main Statistical Office (GUS 2013) online shopping conducted 11.2% of the food industry enterprises. However, most of the transactions did not exceed 5% of total purchases value. In 2013 online sales (over Website or EDI) were conducted in 10.7% of food industry enterprises. The main barriers to the sale of products through the Internet in the food industry enterprises were: unfit products for sale through the website (51% of responses) logistical difficulties (37%) difficulties with payment (24%) difficulties with security of information systems or data protection (20%) legal difficulties (15%) too high costs (31%)

The development of electronic commerce in Polish agribusiness On the Polish agricultural market there is a very large number of intermediaries. They buy agricultural products from farmers to sell them later at a profit. Many intermediaries are present in key Polish agricultural markets such as cereals market, pork market, and vegetable market. In Poland, one can observe the processes of concentration and consolidation at the level of food processing and retail .

The development of electronic commerce in Polish agribusiness It can be argued that the most powerful and with greatest bargaining power enterprises in the food chain in Poland are large retail chains and supermarkets, which can dictate terms of transaction to their suppliers. In turn, the food industry have high bargaining power in their dealings with intermediaries and farmers. Small farms do not have many alternatives to sell agricultural commodities and usually sell them locally. The Polish agricultural market is characterized by low level of contracting and vertical integration, and dominate informal agreements and open market transactions.

The development of electronic commerce in Polish agribusiness At the wholesale level, many organizations are trying to use e-commerce to strengthen their position in the food chain. Examples are dairy wholesalers in Poland that by allowing customers to place orders via the Internet, lowered operating costs and strengthened their position in the marketing channel In the Internet there are many emerging Polish websites related to agribusiness, which have the characteristics of public electronic marketplaces. However, they have usually the form of simple electronic catalogs of sale offers and buying requests.

The development of electronic commerce in Polish agribusiness

Conclusions Although e-commerce has a great potential to provide many benefits for both consumers and businesses, its development in Poland is still at a lower level compared with the highly developed countries of the European Union. However, electronic commerce affects the operation of many enterprises and agricultural markets. In Poland, one can observe two main directions of development of B2B e-commerce in agribusiness. On the one hand, traditional enterprises of agri-food chain try to use e-commerce solutions to strengthen their market position and to better conduct existing functions. On the other hand, there are beginning to appear new cybermediaries who try to take advantage of the fragmented Polish agricultural market.