Electronic Markets in Hong Kong's Air Cargo Community

This paper takes a critical look at electronic markets. Through an examination of Hong Kong's air cargo industry, where an electronic network recently has begun its operation, we argue that none of the key industry stakeholders stand to gain from an electronic market. Instead we found that the existing electronic network has limited its service to carefully preserve the distribution of power among the stakeholders, it has done so to be successful and to attract a critical mass of users. The network now has a de-facto monopoly in Hong Kong's air cargo community. The monopoly and the stakeholders will seek to block any attempt to establish an electronic market in the future. Electronic means of communicating market information is raising a considerable interest in the business community and academia alike. What has become known as electronic markets are predicted not only to assist organizations or individuals in doing business more efficiently, but it will also change the very way business is done (Lee & Clark, 1996). In that sense most people concur that electronic markets constitute a significant innovation that will radically alter markets in the future. However two key questions remain. Who will stand to benefit from electronic markets? And how should various existing market players position themselves in regard to initiatives to establish such mar-kets?