Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. Description
In February 2000, DaimlerChrysler, Ford Motor Co., and General Motors Co. jointly announced plans to combine efforts and form a global online business-to-business (B2B) exchange. The goal of the exchange was to provide original equipment manufacturers and suppliers with the ability to reduce costs in their respective supply chains and bring efficiencies to their business operations. A few months after the announcement, Renault S.A., Nissan Japan, and several top-tier automotive parts suppliers voiced their support and planned to join the exchange. The founders coined the name "Covisint" for the exchange. In July 2000, the Federal Trade Commission (FTC) in Washington, DC launched an investigation into Covisint's structure and mission, to explore any possible antitrust implications. The FTC was aware that Covisint's founders represented a large share of the automotive market. Given the influence of the big players, the FTC feared that small companies could be excluded from the market and that the exchange could provide a channel for the improper transfer of sensitive information among the participants. Covisint was the first B2B venture to be reviewed by the FTC. The outcome of the case and the issues raised sparked widespread debate about how, or whether, the B2B industry should be regulated by antitrust provisions. The case also raised concerns from companies that intend to invest or participate in B2B trading platforms.
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Case Analysis of Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc., is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Global Business Solutions
In the Texas Business School, Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Step 1 – Problem Identification of Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. - Harvard Business School Case Study
The first step to solve HBR Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ftc Covisint is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ftc Covisint, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc..
The external environment analysis of Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study. PESTEL analysis of " Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
To do comprehensive PESTEL analysis of case study – Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Government policies have significant impact on the business environment of any country. The firm in “ Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Ftc Covisint is operating, firms are required to store customer data within the premises of the country. Ftc Covisint needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Ftc Covisint in case study Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc." should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ftc Covisint in case study “ Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ftc Covisint in case study “ Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ftc Covisint can compete against other competitors.
Government Scheme & Subsidies Impact on Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Ftc Covisint needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Social Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Technological Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Environmental Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Legal Factors that Impact Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc. case study. PESTEL analysis of " Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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