By Sally Watson, 26 April 2000 13:29
NEWS Business-to-business (B2B) marketplaces are not the Internet goldmine of the future, according to the latest report from research company AMR. The report, 'Evaluating the Independent Trading Exchanges', forecasts that within the next year up to 90 per cent of exchanges could go bankrupt or be swallowed by mergers and acquisitions. The last six months have seen a raft of announcements in the B2B arena, with major exchanges like Ford and Oracle's AutoXchange, and Commerce One's aerospace deal, leading the way. But it is the smaller players that will suffer, according to AMR, with researchers citing flawed revenue strategy, poor liquidity and lack of neutrality as some of the main stumbling blocks. AMR predicts that pricing pressures will increasingly drive suppliers to set up their own online exchanges, rather than relying on independent B2B players.
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