Vertical Net, Inc. By Christina Soh & Harminder Singh

Abstract

After the fall from grace of Internet-based retailers, the business-to-business (B2B) industry was enthusiastically promoted as the next beneficiary of the diffusion of the Internet in business. Among the many firms that were founded to take advantage of this wave of goodwill was VerticalNet. Although it was not the first B2B dot-com to be founded, it became a highly visible success story and within three years, it had opened twenty-four "verticals" or industrial communities.

This case study traces the evolution of its strategy, as it progressed from providing basic matchmaking services for businesses in specific industries to offering the software that would enable firms to improve their procurement processes and enhance their links with their partners. As it expanded the scope of its activities, VerticalNet faced a fast-shifting competitive landscape and its responses to these challenges are detailed in the case in an effort to understand the mechanics of its strategy-making process, as well as provide some guidance on its future trajectory.

Issues: E-Commerce, B2B Business

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