©Prof. Karen Clay Chemdex Who are the customers? –Supply chain Attracting customers to website is not a key problem in B2B Offering them a reason to use the site can be

©Prof. Karen Clay Chemdex –“A key element of our strategy is to market our solution directly to life sciences organizations, and to succeed we must satisfy the purchasing departments, information technology groups and the individual researchers who are the users of our Internet-based purchasing solution. The time it takes to sell and implement our solution is long and we devote significant sales, marketing and management resources to the sales process without any assurance that the customer will use the Chemdex Marketplace.” Nov Q

©Prof. Karen Clay Chemdex What are the value propositions for the various types of customers?

©Prof. Karen Clay Chemdex What is the basic business model?

©Prof. Karen Clay Chemdex Network externalities –What are they? –Why are they important? Ebay example

©Prof. Karen Clay Chemdex How sustainable is their competitive advantage? How portable is their business model? –That is, how easy will it be for them to expand into other lines of business?

©Prof. Karen Clay QRS Reduce coordination costs –Virtual intermediary Catalog model Recently added auction model How sustainable is their competitive advantage? How portable is their business model?