Additional Readings Unit 2

Additional Readings
Contents
Reading 2.1: “Electronic Markets and Virtual Value Chains on the Information
Superhighway” Benjamin, Robert, Wigand, Rolf. Sloan Management
Review. Cambridge: Winter 1995. Vol. 36, Iss. 2; pg. 62, 11 pgs.

Reading 2.2: “Beyond Porter”, Larry Downes, Context Magazine, Fall 1997
Reading 2.3: “Beyond Porter – A Critique of the Critique of Porter” Dagmar Recklies

Additional Reading 2.1

“Electronic Markets and Virtual Value Chains on the Information Superhighway”,
Benjamin, Robert, Wigand, Rolf.

Sloan Management Review. Cambridge: Winter 1995. Vol. 36, Iss. 2; pg. 62,

UNSW, Copied under Part VB of the Copyright Act 1968, as amended, on
December 1993.

Electronic Markets and Virtual Value Chains on the
Information Superhighway
Benjamin, Robert, Wigand, Rolf.

Sloan Management Review. Cambridge: Winter 1995. Vol. 36, Iss. 2; pg. 62, 11 pgs

Abstract
The questions of how future traffic on the information superhighway will affect each segment of an industry value chain and whether electronic markets will provide new areas of opportunity for retailers, producers, and consumers are examined. It is suggested that the national information infrastructure (NII) will give consumers increased access to a vast selection of goods but will cause a restructuring and redistribution of profits among stakeholders along the chain. There will also be an evolution from single-source sales channels to electronic markets. Electronic markets may lower coordination costs for producers and retailers, lower physical distribution costs, or eliminate retailers and wholesalers entirely, as consumers directly access manufacturers. Consumers’ full access to the market will also be an issue that policymakers need to explore.
Electronic markets may soon affect the evolution of the national information infrastructure (NII), or in formation superhighway, as well as the emerging global infrastructure. As the NII is connected to consumers’ homes, market activity will

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