Two-Thirds of the B2B Marketplaces Can’t Survive on Their Own?

[Berlin, GERMANY] Many of the numerous newly established B2B platforms in
Germany will not survive, a study says. Two-thirds of the 80 marketplaces
established by start-ups are not likely to be able to survive on their own,
business consultants Boston Consulting stated yesterday in Munich. In the
long run, they either have to link up with established companies or they
will disappear.

Traditional, old economy companies are in the process of surpassing the
new, hopeful ventures in the field of electronic business between companies
(B2B). Of the roughly 130 virtual German marketplaces currently
operating, only those will survive which can draw a transaction volume of at
least Euro 1.5 million to their platforms. By 2003, according to Boston
Consulting, there will only be room for between 60 and 100 virtual
marketplaces established in Germany.

But the scope of transactions alone will not secure the virtual
marketplaces’ existence, they will also have to offer additional
services. Functions such as logistics and the handling of payments are
indispensable according to BCG. Since the established old economy companies
already have such tools, they have an advantage in the long run. Pure
start-ups without any notable presence in the real world only have a chance,
if at all, in very splintered sectors in which they won’t run up against
individual dominant companies.

In three years, according to the study, 14 percent of the trade between businesses
in Germany will be conducted electronically. For large companies with a
turnover of Euro 5 billion and more, the volume will be 26 percent. The B2B
volume will increase from its present level of Euro 177 billion to Euro 422
billion in 2003. For the study, 330 companies were surveyed.

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