Internet Marketing - B2B BUSINESS MODELS AND STRATEGIES by RushenChahal

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									BUSINESS MODELS AND
    STRATEGIES:
   THE B2B SPACE
      Prof. Rushen Chahal




              Prof. Rushen Chahal   Page 1
                               4-2

FORECASTS OF B2B E-
    COMMERCE




         Prof. Rushen Chahal         Page 2
                                4-3
E-PROCUREMENT AND MORE
         AT GE




          Prof. Rushen Chahal         Page 3
                              4-4


    VERTICAL vs.
HORIZONTAL MARKETS




        Prof. Rushen Chahal         Page 4
                                    4-5

B2B CUSTOMER SEGMENTS

 • Programmed
 • Relationship
 • Transactional
 • Bargain Hunter



              Prof. Rushen Chahal         Page 5
                                    4-6

B2B INTERNET MARKET
      SEGMENTS




                               www.accenture.com

         Prof. Rushen Chahal                Page 6
                                     4-7
STEPS IN THE PURCHASE PROCESS and
OPPORTUNITIES FOR COST REDUCTION




               Prof. Rushen Chahal         Page 7
                                      4-8
B2B INTERNET MODELS


• Marketplace/Exchange

• Application Service Provider

• Infomediary




                Prof. Rushen Chahal         Page 8
                                          4-9

  BENEFITS OF MARKETPLACES

• Reduce Search Costs
• Reduce Cost of Information Transfer
• Provide Standardized Business Systems
• Improve The Buyer/Seller Matching Process



                    Prof. Rushen Chahal         Page 9
                                           4-10
   TYPES BY OWNERSHIP
• Public Marketplaces
  – Few Remain
• Private Exchanges
  – One Firm and its Customers
• Industry Exchanges/Consortia
  – Present in Many Industries
  – Some Enterprises Use Services of an
    Industry Exchange to Set Up Their Private
    Exchange

                     Prof. Rushen Chahal          Page 10
                               4-11
MARKETPLACE SUCCESS
      FACTORS




         Prof. Rushen Chahal          Page 11
                                   4-12

MANY MARKETPLACES HAVE
        FAILED




 ‘LIQUIDITY’ IS MAJOR REASON

             Prof. Rushen Chahal          Page 12
                                                      4-13

    BUILDING BLOCKS OF E-
          MARKETS
                Transaction Mechanisms



     Revenue Models           Value-Added Services



Information Flows/
                                               Infostructure
    Community


                         Prof. Rushen Chahal                   Page 13
                                            4-14

MARKETPLACE TRANSACTION
         TYPES
 • Online Catalogs

 • Auctions

 • Reverse Auctions




                      Prof. Rushen Chahal          Page 14
                                            4-15
         REVENUE MODELS

•   Commission Paid by Seller
•   Transaction Fees Paid by Seller
•   Annual Fee for Sellers
•   Advertising
•   Membership Fee to Buyers
•   Percentage of Transaction/Cost Saving



                      Prof. Rushen Chahal          Page 15
                               4-16
VALUE-ADDED SERVICES




         Prof. Rushen Chahal          Page 16
                             4-17

DETERMINANTS OF
 INFOSTRUCTURE




       Prof. Rushen Chahal          Page 17
                            4-18
INFORMATION &
  COMMUNITY




      Prof. Rushen Chahal          Page 18
                            4-19

WHAT IS AN ASP?




      Prof. Rushen Chahal          Page 19
                      4-20




Prof. Rushen Chahal          Page 20
                              4-21




WHAT ARE THE FUNCTIONS
  OF INFOMEDIARIES?


        Prof. Rushen Chahal          Page 21
                         4-22



   HAVE YOU MET
A NEW BUSINESS MODEL
         LATELY?




   Prof. Rushen Chahal          Page 22
        STRATEGIC SUMMARY
                        4-23

• B2B E-Commerce Removes Economic Friction
  from Value Chain
• Enterprises Have Been Striving to Set Up
  Paperless Transactions for Many Years
  – Internet Is a Strong Facilitator
• Vertical/Horizontal Markets,Buyer Segments,
  Lengthy Purchase Process Also Exist Online
• Marketplaces Dominate Transactions
  – Types Still Changing Rapidly
  – Skew Toward Buyer Benefits Creates Problems
• ASPs and Infomediaries Offer Enabling Services
• B2B E-Commerce Continues to Grow
                              Prof. Rushen Chahal   Page 23

								
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