B2B OrganizationsThe Steel Industry.ppt
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1、1,B2B Organizations The Steel Industry,Akcaglayan, Halit Bortey, Ishmael Chang, Thomas T. Chien, Jane Y Cukier, Juan J,2,“Selling steel over the Internet is very embryonic. It could become an A, or it could be not much. But it would be nave to close our eyes to the Internet.“ - USX chairman, Tom Ush
2、er,3,General Facts About the Steel Industry,Worldwide production is over 750M tons of the 3.000 different catalogued steel types available. China, US and Japan are the largest steel-producing countries, followed by Germany, Russia and Korea. Steel use is closely linked to the wealth of an economy (e
3、.g., steel “consumption” per person is about 20kg in Africa, against 420kg in the US). The industry employs about 1.3M people worldwide.Source: International Iron and Steel Institute,4,Key US Players,Source: International Iron and Steel Institute,5,Steel and the B2B Model,B2B in the steel industry i
4、s characterized by: Small market segments Big amount purchases, both in money and volume High expectations for service Knowledgeable buyers Most based on auction model (value is created by spatial matching of buyers and sellers),6,Market Share,By 2001, $32 billion of steel will be sold through inter
5、net portals compared to only $150 million today Morgan Stanley Dean Witter By 2005, 40-60% of all metal produced in the world will be sold via the Internet E-commerce in metals sector is still in infancy about 3% of total sales (Andersens global metal practice),7,Space for B2B sites to operate,= Spa
6、ce for an online steel site to operate,New Value Chain for MetalSite,Raw materials, coal, iron, scrap metal,Integrated or Mini mill about 60-80 producers,Toll process, Distributor, Service centers about 10,000 intermediaries,8,Major Players in the E-Industry,MetalSite Metal Suppliers Online Metal Ne
7、twork Exchange Services E-SteelAll sites are relatively new. MSO was the first-mover, on Feb 1997. All use rigorous qualifying standards before permitting companies to sell and buy online.,9,Online Front Page Samples,Membership is highly sought,All sites provide multiple sources of information,10,Ho
8、w Do They Attract Customers Online?,Cold calls (most) Direct mail (most) Links from .org-steel related sites (all) Exchange of advertising for links (most) Word of mouth (all) Search engines (all) Physical presence in conferences and seminars (all) Recommend this site button (MSO),11,Three Component
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