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Case Study of Online Coffee Auction in India: Presented By: Sahena Ahmed Priyanka Das Navneet Paliwal Arijit Pal

This case study examines setting up an online auction system for trading various grades of coffee in India. It analyzes different coffee procurement models including physical mediated, physical direct, online mediated, and online direct. The study finds that online auctions lower transaction costs and allow for daily operations compared to physical auctions. However, online auctions lack face-to-face interactions. The role of intermediaries and government agencies in providing infrastructure, certification services, and financing is also discussed. In conclusion, the study emphasizes developing quality verification standards, expanding internet infrastructure in rural areas, and negotiating relationships between participants.

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Arijit Pal
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42 views

Case Study of Online Coffee Auction in India: Presented By: Sahena Ahmed Priyanka Das Navneet Paliwal Arijit Pal

This case study examines setting up an online auction system for trading various grades of coffee in India. It analyzes different coffee procurement models including physical mediated, physical direct, online mediated, and online direct. The study finds that online auctions lower transaction costs and allow for daily operations compared to physical auctions. However, online auctions lack face-to-face interactions. The role of intermediaries and government agencies in providing infrastructure, certification services, and financing is also discussed. In conclusion, the study emphasizes developing quality verification standards, expanding internet infrastructure in rural areas, and negotiating relationships between participants.

Uploaded by

Arijit Pal
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Case study of online coffee auction

in India

PRESENTED BY:
Sahena Ahmed
Priyanka Das
Navneet Paliwal
Arijit Pal
Case study..
This case study deals with setting up online
auction for trading various grades of coffee.
• Information system
• Identify the conditions
• Role of govt. agencies and platform providers
DIGITAL DIVIDE

•Income inequality
•Income increases
LITREATURE REVIEW IN TRADE

• Nascent electronic auction trades in


agriculture commodities.
• Analyze different procurement model which
co exits in this environment.
• contribute to the growing literature which
focus on the use of IT in global context.
Research Process

Steps are:
• Collection of information through website,
trade articles, newspapers
• Interview with experts
• Analysis at transaction data
• Process stakeholder perspective
Coffee supply chain, participants and
auctions
• Coffee supply chain in India
1. planters
2. exporters
3. domestic roasters
4. intermediaries
Coffee grades
Regulations and Market trends
Procurement models
1. ICTA and online auction
A) ICTA
• Major weekly coffee auction in India
• Planters, brokers and agents carry sample of coffee in
the auction.
B) Online auction
• Open for business 5 day a week
• Time limitations
• Lots that remain unsold is offered again on following
days.
How online auction differs from
physical auction ??..
• Transaction cost lower
• Daily operation
• Experienced participants
• Lack of face-to-face interaction
Procurement models
• Physical mediated
• Online direct
• Online mediated
• Physical direct
Dimensions Physical Physical Online Online Direct
Mediated Direct Mediated
Search Search seller Buyer find Intermediary Buyer finds
on behalf of seller through search the seller through
buyer ICTA auctions seller and auctions
sells through
auctions
Valuation Intermediary Price Price Price discovery
discover price discovery discovery through
through through auctions
auctions auctions and
intermediary
Logistics Intermediary Face to face Between Between buyer
arranges interaction buyer and and seller
transportation based on intermediary
and payment auctions rules
Payment Arranged Face to face Arrange Arrange
through through through online
intermediary online auctions
platform platform based
based on on rules
rules
Authenticatio By trusted Face to face By trusted Through
n intermediary intermediary online
and through platform
online
platform

Communicati Communicati Face to face Limited Limited


ons & ons through communicati communication
Computing intermediary ons online s online
platform platform

Product Visual Visual Coffee type Coffee type and


representation inspection inspection and sub- sub-grade
and sub-grade and sub-grade grade specification
specification specification specification
Uncertainty-Verifiability
Framework
The Uncertainty - Verifiability
framework
Role of intermediary
• Consolidating lots from multiple buyers in
online mediated model
• Arrange for transportation
• Manage logistics for buyers and planters
• Provide storage facilities
• Grading and certification services
• Financing for planters
Summary and conclusions

1) Development of quality verification


scheme
2) Marketing literature negotiates between
manufactures & retailers
3) Govt. will provide IT & Internet
infrastructure in the villages.
Have a coffee day

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