Background
CitiusNet is a company that provides a third-party electronic trading system for products that are used in the production and administrative process such as office goods. Providing originally an EDI support system for linking just to one supplier-CitiusNet (by that time CitiusNet operated under the name Brun Passot). In order to fight this drawback the company started to develop a multi-supplier telepurchasing system and launched CITIUS in 1993, the “first European platform for B2B electronic commerce” and evolved to an early Internet marketplace. CitiusNet as the electronic intermediate connected purchasers and suppliers through EDI using a telecommunications network or optionally a VAN. It offered supplier catalogs, catalog management, order management, EDI translation services and payment transactions.
Third Party Marketplace
This emerging model is suitable in case companies wish to leave the Web marketing to a third party (possibly as an add-on to their other channels). They all have in common that they offer at least a user interlace to the suppliers’ product catalogues. Several additional features like branding, payment, logistics, ordering, and ultimately the full scale of secure transactions are added to 3rd parly marketplaces. Revenues can be generated on the basis of one-off membership fee, service fees, transaction fee, or percentage on transaction value. CitiusNet grasps the opportunity by providing necessary services for this model.
The vertical Internet portals or hubs serve as a point of access for companies operating in a specific business field to support business transactions. A vertical portal can also be the platform for different business communities and can support all transaction phases. Particularly used for procurement to lower transaction costs vertical hubs provide product catalogs and supplier listings. Furthermore they might as well offer online brokerage services to find business partners that match best specific supplier or purchaser profiles.
Competitive Advantage
CitiusNet not only moved business from VANs to an Internet marketplace but also built competitive advantage. Three crucial competitive advantages established CitiusNet’s assets. The first is community building. This represents the idea that once a large purchaser is using CitiusNet’s marketplace, its suppliers are pulled to the market as well since they themselves will benefit from putting their catalogs online and thereby generate more business. Secondly, content is important. A rich set of product catalogs will clearly attract more customers. And thirdly control is necessary to identify business processes and requirements in order to be able to add value to the customers’ business process.
