E-Commerces Effect on B2B Relations - Essay Example

Comments (0) Cite this document
B2B exchanges provide a multi-node alternative approach to managing the flow of information, transactions, products and money. 'Supply webs (or vortals) serve industry sectors by integrating the supply chain systems of various buyers and sellers creating virtual trading communities.' (Turban et al, 2006: 282)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
E-Commerces Effect on B2B Relations
Read TextPreview

Extract of sample "E-Commerces Effect on B2B Relations"

Download file to see previous pages Organizations typically participate in more than one exchange in order to derive network advantages from complementary goods and services. Participating in an existing web-enabled B2B exchange allows organizations to reduce their own online start-up costs and to benefit from lower customer acquisition costs. (Kabir, 2004).
"Today, supply chain management is far more important than manufacturing as a core competence; so much so that it's possible, as Nike and Cisco Systems have amply demonstrated, to dominate the market for a product without owning so much as a single factory" (Taylor, 2003).
Online business-to-business (or B2B) exchanges are widely used in commercial and industrial sectors be it automotive or retailing. The Wall Street Journal (2003) reported that US businesses spent $482 billion in B2B transactions, up 242% from 2001. It was predicted that by 2006 $5.4 trillion in goods and services would be transacted B2B. Bandyopadhyay et all (2006, 512).
B2B exchanges lower the cost to buyers through the automated nature of the procurement process. Further transaction cost falls occur with the use of reverse auctions. Value is added because of the interoperability of the application platform amongst users. Users are able to plan in concert.

Ordanini et al (2004) investigated the factors which determined success for B2B electronic market places or exchanges in Italy.They looked at the content, structure and governance of a variety of business models, using a cluster analysis of the three dimensions.

They found that in a period of 3 years (2000-2003) B2B e-commerce operators had fallen from 120 to 40, with less than 50% of the survivors operating above break-even. Research shows that similar patterns have occurred in the US and Europe. Ordanini et al found that private, large exchanges were generally more successful, due to their "superior capability to generate turnover compared to vertical niche operators" (Ordanini et al, 2004, p281).

Electronic marketplaces were supposed to be a panacea to all the ills of electronic data interchange with its proprietary systems and 1:1 networking. An internet based platform promised disintermediation and new sources of competitive advantage, since the Internet was based on generic public standards and considerably cheaper to make use of.

Figure 2: Alternative Business Models: Output of the Cluster Analysis. Source-Ordanini et al (20 ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“E-Commerces Effect on B2B Relations Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
E-Commerces Effect on B2B Relations Essay Example | Topics and Well Written Essays - 3500 words. Retrieved from https://studentshare.org/miscellaneous/1528366-e-commerces-effect-on-b2b-relations
(E-Commerces Effect on B2B Relations Essay Example | Topics and Well Written Essays - 3500 Words)
E-Commerces Effect on B2B Relations Essay Example | Topics and Well Written Essays - 3500 Words. https://studentshare.org/miscellaneous/1528366-e-commerces-effect-on-b2b-relations.
“E-Commerces Effect on B2B Relations Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.org/miscellaneous/1528366-e-commerces-effect-on-b2b-relations.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF E-Commerces Effect on B2B Relations

B2C Compared to B2B

..., we can define B2B as those "portals that allow businesses to deal directly with their suppliers and distributors online, thereby allowing electronic transfer of orders, invoices, payments etc. Wholesalers, distributors, and manufacturers fall in this category". (2006a) B2B websites serves as primary or direct link, which connect suppliers to suppliers or business-to-business while "B2C websites are intermediary portals that link customers to suppliers as its main concern is selling to the end user". (2006a) "From a 'solution-oriented' perspective, a B2C site is just the end point of B2B and B2C supply chain". (2006c) "Research suggests that that both the...
4 Pages(1000 words)Essay

B2B E-Commerce System

... REPORT ON STRATEGY OF B2B E-COMMERCE SYSTEM 22 March 2009 Report The Chief ExecutiveOfficer Report from: Subject: Report on the IT components that shall form the B2B E-Commerce System for the organization Writer ID #: 19714 Order No. 282441 [Name] [University Name] [Course Name] [Supervisor] [Any other details] 22 March 2009 Table of Contents: Introduction: This report is presented with respect to the plan of implementing a B2B E-Commerce system for the organization. In this context this report presents a brief on the queries that you had raised and a feasibility study... and cost benefit analysis of the project at the end. The report on Web and Application Servers Background: In this report, I present an analysis of Apache,...
8 Pages(2000 words)Essay

Effect of E-Business on Marketing Strategies

...Running Head Effect of E-Business on Marketing Strategies Effect of E-Business on Marketing Strategies Effect of E-Business on Marketing Strategies E-business has wider possibilities than traditional marketing in terms of business operations. E-marketing uses bolt-on systems based on the addition of an e-business system as a value added service to existing supply chains. The more business that is generated by bolt-on e-business systems, the lower are intermediation and search costs. The transaction costs of managing the supply chain reduces by use of standardized and...
5 Pages(1250 words)Case Study

Impact of E-commerce on B2B

...better with processes. (Chen, 2003) 3.0 Research Aims The fundamental aim of this paper is to identify E-commerce and its Impact on B2B Organizations Supply Chain and identify the way in which the logistics of business-to-business e-commerce can be managed to gain the most efficient form of supply chain in UK. 4.0 Research Questions The fundamental question of this paper is to find out the whether the impact of E-commerce and B2B Organizations Supply Chain if effective and whether it is logical to implement it in the parameter of supply chain in UK. 5.0 Data collection The...
9 Pages(2250 words)Essay

B2B Marketing

.... Therefore, it is vital that the opportunities and implications of e-commerce be understood." (Stair & Reynolds, 2001) B2B E-commerce and the Impact on Industry Structure: The most important characteristic of the B2B e-commerce is that it has changed the way the procurement activities undertaken by the intermediary firms. Although the online competitors are not wholly replacing the traditional intermediary firms but still they are giving tough competition to the traditional competitors. They have the cutting edge of speedy and easy to reach service. These intermediary firms are also using the electronic...
10 Pages(2500 words)Essay

MSc International Marketing Management

...sequence and these are: D —- Define the marketing predicament E —- Enumerate the controllable and uncontrollable assessment aspects C —- Collect appropriate data I —- Identify the preeminent option D —- Develop and execute a marketing plan E —- Evaluate the verdict and the assessment process This concept starts by defining the problem, aims and hindrances then considers the possible and unmanageable factors, selection of the best alternative, generate a feasible plan, and lastly evaluates the decisions taken (Twedt). Carleton (2009) categorises two major areas of market research: consumer market research or business-to-consumer (B2C) and business-to-business (B2B) market research or...
16 Pages(4000 words)Essay

B2B Marketing

...Business-to-Business (B2B) Marketing How does business market management differ from consumer packaged-goods marketing? Business-to-Business (B2B) marketing takes place between businesses in contrast with consumer marketing which businesses conduct to attract individual consumers. Thus, in B2B marketing, both parties are profit motivated whereas consumer packaged-goods are designed to be consumed for personal use. Strictly, the other business may also ‘consume’ the good in a sense but the goods are usually used in a process, which may eventually lead to further marketing later on. For example, a manufacturer could obtain parts from another businesses, and then sell the completed products...
2 Pages(500 words)Essay

B2B Marketing

...1. Why is it important to make your new products’ realisation strategy market-driven? In highly competitive market environments organizations need to place extensive efforts towards conceptualizing, designing, developing and marketing products or services that address strategically and effectively to the market demand while at the same time offer competitive edge to the enterprises themselves. New product realization is a rather complex process that involves more than the development of an innovative product, but pertains predominantly to the entire procedures that relate to initiating, conceptualizing and eventually developing the new product (Chakravarty, 2001). Product realization entails the...
6 Pages(1500 words)Essay

B2B Marketing

.../50309/the-risk-of-not-investing-in-a-recession-2/ [Accessed May 08, 2010]. INSEAD, 2009. Global recession a catalyst for change in the advertising industry. Knowledge. [Online] Available at: http://knowledge.insead.edu/recession-advertising-consumerism-090730.cfm?vid=288 [Accessed May 08, 2010]. Jakovljevic, 2004. Differences in Complexity between B2C and B2B E-commerce. DePaul University. [Online] Available at: http://facweb.cs.depaul.edu/econfer/ect455/Class%20Material/B2B%20B2C%20Distinctions.pdf [Accessed May 08, 2010]. McDonough, M. & Ackert, G., 1986. Developing a Promotional Strategy. Michigan State University. [Online] Available at:...
10 Pages(2500 words)Essay

B2B and Reseller Markets

...compromising the positive relationship. The third issue is supply chain prospect. The supply chain activities often help to understand the organisational coverage with respect to services provided to the clients. Irrespective of the fact that most of the primary expenses of Airslash are related with supply chain, the core valuation would determine customer profitability (Ford & et. al., 2006). Analysis of Customer Problem and Management of Relationship Power: The relationship persisting within b2b environment is mainly characterised by power and dependency. Power in business relationship is a key aspect, which results in the destruction of relationship or enhancement of the same. It is worth...
6 Pages(1500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic E-Commerces Effect on B2B Relations for FREE!

Contact Us