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ITS 380 Global E- Commerce

Chapter 12


Case Study Questions


1.           If you were a small chemical company, what concerns would you have about joining Elemica?

As a firm, you might be concerned with the certain requirements from Elemica even though they donít require ERP system to connect with them. Elemica still requires some degree of sophisticated technology. So firms should be able to evaluate their current technology state and if it can be improved due to the decision of joining Elemica.


2.           Elemica provides a community for participants where they can transact, coordinate, and cooperate to produce products for less. Yet these firms also compete with one another when they sell chemicals to end-user firms in the automobile, airline, and manufacturing industries. How is this possible?

In my opinion, Elemicaís central enterprise system is what glueing the businesses together. Firms donít need ERP system to join Elemica and this is a huge plus. Because not every firms have enough money to buy or subscribe for an expensive software system. Buy the central one program Elemica provides, transaction, logistical side of businesses became easier for sellers. Also Elemica not only provide platform to market sellersí products, but also provide one central channel to get desired products as a buyer.


3.           How does the purchase of Elemica by Thoma Bravo, a private equity firm, change how Elemica fits into the B2B framework illustrated in Figure 12.9?

After the purchase, Elemica went from an e- distributor to an industry consortia.