The growth of e-commerce
It is suggested that a major growth area now and in the near future is in B2B e-commerce. Critically discuss the factors supporting this view and identify the key areas where the perceived benefits lie."B2B Connectivity is no longer a luxury; it's a necessity in order for a company to remain competitive. B2B integration enables a company to focus on its core competencies and offload other services to partners in order to gain efficiencies and reduce cost." (ebiz.net, 2003)Electronic commerce has emerged as a significant and rapidly growing component of global economic exchange. The opportunities to reduce procurement costs through Business to Business (B2B) e-commerce have motivated firms in many industries to band together to create electronic supply networks. While it will not be known for years who the winners and losers will be in this economic transformation, it is widely expected that B2B e-commerce will significantly alter the competitive landscape of many industries. (Ansberry, 2000) This essay will critically discuss the factors supporting these views and consider why it is such a major growth area as well as identify the key areas in which the perceived benefits of B2B e-commerce lie.
htmlResearched: March 20th 2004Firstmonday. ReferencesAscusc. org, 2002)Dell computer in the US is a good example of a company that has realised tremendous cost savings as a result of B2B e-commerce for both its sales and procurement. Although many companies will abandon traditional ways of doing business for the potential benefits of the new, the transitions will take place to varying degrees and within varying time frames depending on company characteristics and industry variables. Thus, an organisation can spend valuable time on providing high levels of service while benefiting from the lower cost distribution associated with B2B e-commerce. org, 2002)The recent and without doubt future growth of the B2B model lie in cost saving. Although the internet is dramatically affecting the way we do business, the rate of growth and adoption has been much slower than expected. The business to business model has provided the technological platform for businesses to bulid on. Yet, the potential in terms of monetary volume and number of transactions, however is far higher for B2B even than B2C. Technology may change and executives will have to plan again but all must admit that business has been forever changed by the digital transformation of processes and the structure of supply chains.
Common topics in this essay:
Lucking Spulber,
Business B2B,
Information Exchange,
B2B B2C,
Server Technologies,
Moreover B2B's,
B2B Connectivity,
Kenjale Phatak,
Researched March,
Data Interchange,
b2b e-commerce,
supply chain,
b2b exchanges,
researched march,
cost procurement transaction,
procurement transaction,
cost procurement,
value chain,
business business,
costs associated,
business processes,
key perceived benefits,
procurement transaction reducing,
march 20th 2004,
researched march 20th,
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Acceptance Essays
