Group assignment 2: Wednesday Group 9 Matti Arkko Sebastian Löfhjelm Ville Seppänen.

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Group assignment 2: Wednesday Group 9 Matti Arkko Sebastian Löfhjelm Ville Seppänen

Control inventory  InsWeb  Inventory can’t be controlled, because InsWeb doesn’t supply concrete products  FreeMarkets  Offering only the service, no inventory of physical products needed  E-Loan  Provides financing, inventory control not possible

Sell online  InsWeb  Doesn’t sell online. InsWeb works as a intermediating marketplace between insurance companies and customers  FreeMarkets  A global B2B marketplace. Brings together sellers and buyers  E-loan  Financing can be applied online

Price set online  InsWeb  Insurance companies set the prices, which customers can compare.  FreeMarkets  Price set online, using downward price auctions.  E-loan  Fixed prices, customer can select the most suitable form of loan.

Physical Product/ Service  InsWeb  No physical products actually, documents etc. may be shipped  FreeMarket  Products are transferred between sellers and buyers  E-loan  Doesn’t provide physical products

Likely Revenues  InsWeb  Free for consumers. Probably gets a fee from the insurance companies  FreeMarket  Revenues likely based on transaction fee  E-loan  Organizes loans for its customers from third parties and collects service fees

Likely costs  InsWeb, FreeMarkets, E-Loan  (IT-)Service maintenance  developement costs  advertising costs  customer support

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