Freemarkets

In: Business and Management

Submitted By gein0513
Words 1059
Pages 5
Case: FreeMarkets OnLine, Inc.

I. Statement of the Problem/Key Strategic Issue

Glen Meakem founded FreeMarkets OnLine in Pittsburgh, Pennsylvania in 1995. FreeMarkets OnLine, Inc. is an electronic market company which delivers interactive bidding among competing suppliers generated price savings. It created fair and open exchange software which is necessary for Competitive Bidding Event (CBE). The company was successful at developing reasonable expertise and market knowledge, to lead the art and science of making markets for custom products, where each buyer in the market has his own set of objectives and issues. FreeMarkets assists industrial buyers in posting requests for proposal (RFPs) and holding Internet based reverse auctions for their products. By automating the flow of information, a large number of suppliers can be effectively included in the RFP process, resulting in more competition and lower costs for the buyer.

FreeMarkets Online lead in creating B2B online markets and providing E-commerce technology and services for the procurement of industrial parts, raw materials, commodities and services. FreeMarkets combines its proprietary technology platform with information on the procurement, or “sourcing” of direct materials, commodity-specific domain knowledge and services to deliver measurable savings to customers.

FreeMarkets Online is faced with developing a strategy that will increase revenues from $1.8 in 1997 to $6 million in 1998. To achieve this increase of their revenue, FreeMarkets Online must decide which strategic opportunities they wish to pursue in order to attain these revenue goals. These opportunities include both vertical and horizontal market expansion, technology licensing, and networked purchasing information systems. FreeMarkets Online management must ascertain how to best leverage such factors as their current…...

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