Coalition 1
Coalition 1 : Coalitions are either buy-side or sell-side and are generally groups of buyers or sellers who agree to channel procurement through a single marketplace. They operate a marketplace without having a third party, neutral Net market as the hub. Many claim to be neutral--that anyone can join--but, by the nature of their partnership their first audience is either buyers or sellers. The advantage of coalitions, particularly buy-side coalitions, is they can do a lot of transactions, which creates marketplace liquidity. However, the problem with coalitions is they have several challenges to overcome--political challenges, both from regulators and relationships between powerful companies, as well as technology challenges of integrating legacy systems. Due to the complexity of these issues, none are operational yet. If they do in fact successfully overcome these obstacles and operationalize, we expect they will conduct a large number of transactions because they can force their suppliers to go through this marketplace to conduct the transactions
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