Ivey Publishing
eLance.com: Preventing Disintermediation
Product Number:
9B01E003
Publication Date:
02/27/2001
Revised Date:
12/17/2010
Length:
9 pages (8 pages of text)
Product Type:
Case (Field)
Source:
Ivey
eLance.com allowed buyers to find sellers for time-sensitive project work without limiting bids to sellers within the vicinity of the buyer's physical office. It was just finishing the beta test of its site which had facilitated over 30,000 transactions in the past year. eLance was in the midst of closing its second round of venture financing which would allow it to execute its plan to become the premier online global services marketplace. To do this, it needed to prevent disintermediation - instances when eLance buyers and sellers, after being introduced on the eLance site, decide to conduct future project-related transactions offline. This would prevent eLance from mediating these transactions and gaining revenue from them. eLance had already implemented several customer-focused onsite and offline features to deter disintermediation. The co-founder and vice-president of business development had to determine what incentives were needed to keep customers dealing with each other through the site rather than offline.
Issues:
Disciplines:
Entrepreneurship,  Information Systems
Industries:
Administrative, Support, Waste Management and Remediation Services
Setting:
United States, Small, 2000
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Translations: French (11 pages)
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