Globalization and electronic commerce : inferences from retail brokering

E-commerce has contributed to the retail brokerage industry becoming more global and more contestable. By examining the different stages of the value chain, we can analyze the differential impact of the information and communication technology (ICT) revolution on each segment of the industry. To date, the primary drivers of globalization have been manifested at the 'whole-sale' stage of the industry. In contrast, important features of the broker-customer interface have perpetuated a multi-locational competitive structure at the retail stage of the industry. Nevertheless, actual and potential competition has been significantly increased by the spread of e-commerce at all stages of the industry. E-commerce innovations encourage both standardization and variety within an increasingly competitive industry.