B2b Exchanges And Business Activity Perspective

1189 Words Jan 15th, 2016 5 Pages
“Business-to-business (B2B) exchanges or marketplaces provide dramatic opportunities to automate collaborative business processes with customers and suppliers, generate internal efficiencies, and reach new markets at minimal cost.” - (Kenjale & Phatak, 2002)
The epigraph quote from a 2002 article in the CRM magazine provides the commonly used and accepted definition of Business-to-Business (B2B) exchanges. The key differentiating attributes of the B2B Exchanges from the Business-to-Consumer (B2C) exchanges are: the target customers (Business customers such as Resellers, Industrial market, etc.); the nature of demand which is “derived” based on consumer demand; and the exchange process which are more formal in nature (more purchase constraints and decision makers), with more direct producers leading to complex negotiations. Now that the scope of the B2B exchanges is clarified, the B2B exchanges can be viewed from 3 different perspectives. These perspectives are Market perspective; Procurement stage perspective; and Business Activity perspective. All 3 perspectives are valid and discussed below with specific attention to the role of the internet as a resource impacting the exchanges in each of the perspectives.
The first and the simplest (comparatively) perspective of the B2B exchange is the Market perspective defined by the motivation of the buyers and sellers for conducting the exchange. In this perspective as noted in the book “Digital Business – Concepts and Strategy”, the…
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