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E-Marketplace Business to Business - Coursework Example

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Volkswagen has several disadvantages in that running its own B2B e-marketplace could be risky. This is in terms of all the legal procedure involved and the capital involved. The company could lose business, as most suppliers could not be for the idea of directly participating…
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E-Marketplace Business to Business
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E-marketplace Business to Business Volkswagen has several disadvantages in that running its own B2B e-marketplace could be risky. This is in terms of all the legal procedure involved and the capital involved. The company could lose business, as most suppliers could not be for the idea of directly participating in the VWgroupssupply.com (“Closing Case Study One” 152). The advantages include a reduction in the costs of finding business. This means that the company could be more efficient and productive.
2. The suppliers get a chance to make improvements on Volkswagen products. This ensures the production of quality products for the suppliers that leads to an appreciation in their goodwill. For Volkswagen, the company reduces its marketing costs. In addition, it manages to incorporate the resources of suppliers in the improvement of the product. This gradually leads to the company gaining competitive advantage in the global markets.
3. The relation between the suppliers and the company makes it a vertical e-market place. The horizontal structure occurs through the suppliers, Volkswagen, and the suppliers of the MRO materials. The company needs to combine the e-marketplaces to minimize the bureaucracy involved in the supply of the materials. The creation of two distinct e marketplaces could increase the costs of maintenance incurred by the company.
4. The iPAD tracks business events and sends information back to the purchasing agents. It attaches relevant information about suppliers that aid the purchasing agents in the determination of potential suppliers. Such information is completed by iPAD electronically. The iPAD could provide business intelligence on low cost tools for operating an e marketplace. Moreover is could provide reports on viable sources of information for an efficient decision making process.
5. IPad provides relevant information to the purchasing agent. This includes the identification of potential suppliers in addition to the inventory they supply and at the stated cost. The steps involved are firstly, the presentation of a business event. Secondly, the process involves the provision of information relating to the events to the purchasing agents. Finally, it involves the sending of the information to the purchasing agents electronically.
Work Cited
Closing Case Study One. (n.d.). When You Are Big You Can Be Your Own B2B E-marketplace,
151-153. Read More
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