From Niche Player
to Virtual Mall Developer:
Mercantec Lays the Foundation
for an E-Business Platform

1. Mercantec
2. Strategy
3. Opportunity
4. Business Model
5. Market Assessment & Competition
6. Technology
7. Risks
8. Net/Net
Chicago-area software-maker Mercantec could win big if they can harness the powerful synergies possible among users of its virtual storefront development tools- especially if they can avoid channel conflicts with retailers as they provide more business services to merchants.

Online retailing is the wedge that is helping to drive the web even more deeply into the homes and lives of people everywhere. In fact, a large cross-section of the public is finally warming up to the idea that the web can serve as their personal concierge of sorts, eliminating a lot of the legwork that used to add time and drudgery to their daily lives. Newspapers articles herald the experiments of people who have pledged to seclude themselves from the outside world as they fulfill their everyday needs via the web. Microsoft Network's recent series of television ads touting its concept of the everyday web is another notable instance of the contemporary zeitgeist. So while consumers are becoming more sophisticated-and demanding-web shoppers, online merchants have an even greater need for well-designed, turnkey solutions for launching virtual storefronts.

Suppliers of commerce-enabling technology are very much in demand these days. Mercantec, a Chicago-area software developer, is well-positioned to capitalize on this opportunity. Formed in 1995, Mercantec provides technology and services that help small- to medium-sized merchants rapidly build attractive, user-friendly and easy-to-manage virtual stores for any product they want to sell. The company's SoftCart e-commerce software provides businesses with an easy way to create, stock and operate online stores with consistent storefronts and integrated back-end payment and inventory systems that can be built into new or existing web sites. This is just the foundation, however. Mercantec is already well on its way toward building an entire suite of products and services clustered around three key functional areas (see figure 1). Taken together, these components will comprise an integrated e-business platform to help online merchants better manage and optimize their entire value chain.

Core Commerce Community Service Traffic Generation
Payment Fulfillment Community Participation
Order Tracking Marketing Affiliate Opportunities
Cataloging Customer Service Leveraged Promotions
Discounting Financial Services Qualified Online Shoppers
Reporting Information Resources
Tax & Shipping Development Services
Figure 1


Part 2 - Strategy