The powerful worldwide changes have altered the environment of business. The first change is the emergence of internet economy. The second change is the transformation of industrial economies and societies into knowledge and information based service economies. The third is the transformation of the business enterprises. The fourth is the buying power movement from seller to buyer. These tremendous changes are affecting enterprise procurement systems. Many companies are considering further transforming the supply chain into a virtual organization, a process I believe can be made easier with the advent of the internet.
Semiconductor market has been expanding continuously with the development of computer software and hardware, commodity product and information technology and so on. And its market growth rate is predicted over 20% annually through 2002. However the enterprise virtual marketplace in semiconductor area is not activated compare to the other industry. Everyone is now starting.
As is generally known, year 2000 is the year of turning point in the internet business including B2C and B2B. But the value of well organized internet business model is increasing. The key driving factors for B2B include the need to increase the speed and flexibility of the supply chain to reduce total system costs and motivate the members to get higher benefits.
For the S company who is Korean semiconductor manufacturer, they are now developing e-business system very strongly in the field of manufacturing, procurement, sales and marketing department respectively. Now I propose desirable strategies for getting leadership in the worldwide semiconductor B2B marketplace by examining empirical evidence from the Korean semiconductor industry.
