Industry Consortium Marketplace

There are some definite advantages to a buyer being a part of an industry consortia-sponsored marketplace. A company who might have a relatively strong negotiating position can increase their power to force suppliers to deal with them. In a private company marketplace they wouldn’t have the same leverage. Being part of a larger group brings an advantage to the table and gives the buyer more control. When a company sets up their own private market place, they are vulnerable to large companies who might exert power over them in purchasing negotiations. These purchasing negotiations are usually set up in the form of a bid. Whichever vendor comes in at the lowest cost would win the bid and the business of the buyer. This would allow the company to use its power in the supply chain to force suppliers to deal with them on their own terms rather than negotiating.

Industry Consortium Marketplace

Angela A. Peterson

Strayer University

There are some definite advantages to a buyer being a part of an industry consortia-sponsored marketplace. A company who might have a relatively strong negotiating position can increase their power to force suppliers to deal with them. In a private company marketplace they wouldn’t have the same leverage. Being part of a larger group brings an advantage to the table and gives the buyer more control.

When a company sets up their own private market place, they are vulnerable to large companies who might exert power over them in purchasing negotiations. These purchasing negotiations are usually set up in the form of a bid. Whichever vendor comes in at the lowest cost would win the bid and the business of the buyer. This would allow the company to use its power in the supply chain to force suppliers to deal with them on their own terms rather than negotiating.

Becoming a part of an industry consortia-sponsored marketplace increases the buyer’s power