New entrants and the role of information technology case-study: the Tele Flower Auction in the Netherlands

This article discusses the successful entrance of Tele Flower Auction (TFA) into the Dutch flower industry, enabled by information technology (IT). Indeed, the development and introduction of TFA is one of the initiatives in response to import restrictions by the traditional Dutch flower auctions. TFA is an electronic alternative that enables buyers to trade at a distance; this alternative is currently exploited by an import organization called East African Flowers (EAF). This article aims to provide a better understanding of the success of TFA. It provides a descriptive framework for analyzing the merits of electronic auctions. It uses that framework to evaluate the TFA case. The results of the analysis and the framework itself illustrate the various complex issues that arise in the design and implementation of electronic markets.