The rapid change in industrial structure that creates a change in a business form in a variety of industries is happening presently. Until now, each supplier has a similar business form within the pharmaceutical & medical industry. But, due to the changes in the environment such as cyber space marketization, market saturation, the development of the information network, technological innovations, and deregulation, the diversification of the business form is happening. Many enterprises which have a new business form are seen as an enterprise which follow one after another and grow, especially outsourcers which shoulder only a part of the value chain, genome ventures, and so on. This study proposes the new model to analyze the business form of each enterprise in industry. Also it investigates what kind of business form will be realized in the future by doing a prediction and confirming the validity with a case in the pharmaceutical & medical industry. This model is the business form analysis model that shows the point of view from the industrial upper reaches of value chain to the lower reaches, and also the business layers from the contents of a product to the infrastructure. It is thought that the role which an enterprise plays in the industry and the positioning, can be defined by this model that all the business forms are covered thoroughly.

Bakos advocated “Reduced Price Hypothesis.” In electronic market or in electronic commerce environment, he insisted, by reducing search cost competition among sellers is intensified then prices become lower. Lee et al. confirmed the prices at AUCNET auction are higher than those at traditional auctions. He provided suppositions on the mechanism of higher prices, however, he cannot prove it due to the lack of data. We analyze the factors contribute of these higher prices at AUCNET auction using questionnaire to auction users. Then we found out electronic market make competition more intensified among buyers than sellers. We conclude, even in an electronic market, price move relatively higher in particular market circumstances.

Internet auctions are prevailing nowadays, but the mechanism of internet auctions has not been discussed sufficiently. This paper shows a framework of internet auctions from a strategic point of view. We classified internet auctions by mechanisms for risk reduction into 2 types; Shop Sale-type & Market Creation-type. According to the list of Yahoo! USA, there are over 250 auctions as of February 2000. We reviewed these internet auctions and attempted statistical analyses to investigate hypotheses about the classification of internet auctions. The analyses support the classification by mechanisms for risk reduction. These also support that Shop Sale-type and Market Creation-type has different mechanisms for risk reduction concerning product quality and transaction execution, which depend on characteristics of products, sellers and buyers.