By Garth Saloner, A. Michael Spence
2000 | Case No. EC14 | Length 15 pgs.
This business case study focuses on the QRS, a provider of demand chain management services to participants in the global consumer goods demand chain, needed to make to address a new Web-based business concept, Tradeweave. The company was interested in creating a business-to-business auction marketplace for surplus merchandise that was preferable to the existing disposition process, but in May 1999, it was only an idea. Time was of the essence, and management at QRS needed to build a plan to define the opportunity, develop the business model, and establish and implement the new business. The case provides the reader with the information needed to imagine a business opportunity in the sector that QRS would be well positioned for: QRS Corporation’s products and services, the apparel goods supply chain and surplus merchandise disposition, new web-based entrants in surplus merchandise disposition and transaction facilitator revenue models. The case leads the reader to think about determining a business model for the venture, attracting traffic and interest by buyers and sellers to the site to create a marketplace, the functionality required by the service offering and the QRS resources that could be leveraged to meet the new challenge. Practical issues involved in the establishment of a new business are also introduced: the capacity of QRS management, the administrative establishment of the business and the means of developing the new product.
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