Shakeouts in Digital Markets: Lessons from B2B Exchanges
- Topics:
- Strategy Formulation
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Overview: Shakeouts loom large in the landscape of all fast-growing markets. During the boom period, an unsustainable glut of competitors is attracted by forecasts of high-growth and promises of exceptional returns. Even when the market is already crowded, more entrants keep arriving. These followers are often naïve about the barriers to entry and do not realize how many others are also poised to enter at the same time. The abruptness of this shakeout offers new insights into the boom and bust process. The short and unhappy history of business-to-business exchanges is representative of the long-run transformative possibilities of the internet that attracted a glut of competitors and the collective delusion that led to widespread exits.
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Format: PDF | Size: 5,714KB | Date: Jan 2003 | Pages: 21
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