Who will run the electronic commerce networks?
• How will electronic commerce change the structure of distribution? • Who will the winners and losers be? Who Will Run the Electronic Commerce Networks? The ownership and management of electronic commerce networks will clearly influence the acceptance of electronic commerce. The online airline reservation systems, some of the first examples of electronic commerce, provide interesting insights into the ownership issue. Leading airlines developed their own proprietary systems. With these reservation systems, carriers attempted to increase travel agent allegiance to the airline, build customer brand loyalty and, eventually, lower costs. Travel agents welcomed the productivity and customer service improvements. However, the agents feared the network might eventually give the airlines more power over them, particularly in negotiating commission levels. Also, the federal government felt that the systems were biased in favor of the airline running the system. The reservation systems example
