Exchanges in the Digital Economy: The Case of StorebrandXchange.com

Abstract Store brands offer a novel approach for retailers to differentiate themselves from the competition, enhance its image and provide the consumers with a quality product at an affordable price without coupons or promotional pricing. StorebrandXchange.com (SXc) started in early 2000 with a focus on helping to level the playing field between national brand manufacturers and private label manufacturers, and more importantly provide a forum to respond and compete with the bigger retail exchanges. Bob McCain, Vice-President of Business Development, SXc, noticed a distinct shift away from the specialized public exchanges such as Ventro or VerticalNet, and towards large industry-wide exchanges run by consortia of incumbent firms, such as Covisint in the automotive industry and Transora in the consumer products sectors. Taking a clue from these developments, SXc had to transform itself to be successful. This case describes the key issues involved in the decision process of this transformation in the digital economy.