Critical Issues for Digital Exchanges

Maginnis, Jerry
May 2001
Financial Executive;May2001, Vol. 17 Issue 3, Special section p4
Academic Journal
The article reports on electronic commerce with particular focus paid to digital marketplaces, otherwise known as business to business electronic markets. These marketplaces are following traditional business cycles - innovation, rapid growth, investors, and shakeout. An entire industry can be served by only a few exchanges so it is imperative that those wishing to enter the market should do so quickly to gain a dominant position. Challenges facing start ups on a digital exchange include the maintenance of a successful launch, meaning having enough capital to cover up to a 36 month start up period.


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