B2B Assignment Chapter 2 -10: One purchasing executive observed “Online auctioning is an appropriate way to buy some category of products and services but it is entirely inappropriate for others” Agree or Disagree?? Provide support for your position As per the above statement online buying of products & services can be appropriate for some & inappropriate for others. Advantages of online auctioning of products and services Bidding and buying the products through online auction is going very popular these days.
Everyone loves to shop; the only real difference is what you like to buy and where. Online Auction is the best way of shopping. They offer a common platform where buyers and sellers can bid or sell just about anything. Online auctions present great opportunities to entrepreneurs and shoppers alike. Today everyone wants the availability of his desired products and services over a global place, from where he can choose the variety as per his requirement. Online auction is an easiest and reachable way to find the best products at reasonable price.
Online auction is generally a publicly held sale in which goods are sold to the highest bidder. It is the best place to choose what to you want on affordable price. It provides a wide variety of products at prices that can’t be beat. It works similar to live auctions. A minimum price has to be met, and a deadline is set for the auction to end. The main advantage of online auction is that one cannot depend on time to bid for the product. They can bid anytime. It is beneficial for those people who have no more time to spend in the market for searching their desired products.
They can find everything on just a click which is provided by online auction site. On internet many online auction sites are available with different policies and somewhere with different product as well as with different brand. With the help of auction sites one can find the full detail of the product with other accessories used by that product. Online bidding is not limited to electronics or household items. It also includes sale or resale of property and assets, sale of motor vehicles, but also bargaining in the corporate field.
Online auctions can also be a very profitable home based business. Many people worldwide have made much money from their auction sites online. Through online auctions, you have the chance to sell or buy just about anything you could ever want. What are you waiting for – go after what you really want to buy. Enjoy your bidding The Internet has brought about major changes in the way that people interact with one another, and this includes the world of business. The Internet has given rise to e-procurement, through which businesses can interact with one another without being hampered by location.
E-procurement results in much more efficient operations but does take some time to implement properly, Business owners desiring to get into e-procurement should consider the advantages and disadvantages before making a business decision to move to the Internet. 1. Defining E-Procurement * E-procurement (or business-to-business networks) is an online system by which companies can be connected directly to suppliers for the purpose of buying products and services at the lowest cost possible. E-procurement essentially replaces its offline version, called tendering.
The advantages and disadvantages of e-procurement mostly parallel the universal benefits and disadvantages of the Internet. A Brief History of E-Procurement * E-procurement increased in the second half of 1999, when online auctions and product catalogs became commonplace on the Internet and continued to expand. The convenience online buying offered, even in its infancy, led e-procurement to reach as high as $145 billion in transactions in 1999, according to a 2001 article in “Product Inventory and Management Journal,” by Evgeniy Ageshin.
A study by Deloitte Consulting in the fall of 1999 concluded that 85 percent of firms that made use of e-procurement systems were highly satisfied with its benefits. According to Ageshin, e-procurement is still a growing trend, which started with General Electric and Wal-Mart creating buying and selling hubs over the Internet. Internet commerce expanded, as companies like Amazon. com brought together diverse groups of buyers and sellers. Vertical markets (for example, insurance, heavy manufacturing, banking and real estate) have also joined e-procurement consortiums.
Advantages of E-Procurement * The low cost of information and technology courtesy of the Internet is a major advantage of e-procurement. The costs of buying or selling as well as barriers to market entry have significantly been lowered as operation costs are reduced. Prices are more transparent, maverick buying (purchases that occur outside of an organization’s guidelines) is avoided, businesses can easily use preferred supplier networks, and there is better balance of power between buyer and seller given that information is much more available.
E-procurement systems also allow more efficient integration of supply chains and provide better organization and tracking of transaction records for easier data acquisition, according to Ageshin. Transactions can be standardized and all bids for products and services can be tracked more easily, allowing business owners to use such knowledge to obtain better pricing. Due to faster exchanges of information and delivery of goods and services, e-procurement also promotes shorter product-development cycles. Another disadvantage of e-procurement services is rapidly growing multiple standards.
Both buyers and suppliers are uncertain of which e-procurement service provider will survive or become obsolete. Multiple standards also add to the confusion about which one to use and may increase costs for the seller as it attempts to fulfill multiple standards Hence online buying in today’s world is the most easiest and preferred way to shop, but has its pro’s and con’s as every coin has two sides. Disadvantages of online auctioning of products and services Online auctions do not offer buyers an opportunity to see and evaluate before buying personal property. This can lead to the possibility of fraud.
Another major drawback is that it is impossible for a company to participate in an online auction. Businesses should host their own auction sites and for this purpose, qualified personnel should be hired. Online auction fraud includes fraud due to the misrepresentation of a product advertised for sale through an Internet auction site, the non-delivery of an item purchased through an Internet auction site or a non-payment for goods purchased through an Internet auction site. Disadvantages of E-Procurement * Disadvantages of e-procurement are mostly on the side of the supplier.
Ageshin suggests that buyers reap more benefits than suppliers such as shorter ordering cycles, a wider adoption of “just-in-time” practices and increased supplier involvement in product development. On the other hand, Ageshin says that suppliers face problems such as high training costs, the necessity of dealing with more than one marketplace, higher risk of data compromise and full organizational restructuring in some cases. Some suppliers used to dealing with clients face-to-face may find online transactions uncomfortable, since suppliers don’t necessarily know whom they are dealing with online.
Just like online dating, knowing and verifying an organization over the Internet is more difficult, and deception is easier to carry out online. Below mentioned are the TIP’S for Online auctioning :- * Deal with companies or individuals you know by reputation or experience. If you aren’t familiar with the company, do your research. Find out their address and phone number. Do not conduct business with a company that doesn’t list a physical address or telephone number on its Web site. * Read the terms and conditions of the contract to make sure you understand the delivery options, return policy, and product or service warranty.
Do not enter any financial information if you see a broken-key or open padlock symbol on your Internet browser. This means that the transaction is not secure and could be intercepted by a third party. When the key is complete or the padlock is locked, your browser is indicating a secure transaction. * Remember, unlike secure order forms on a Web site, e-mail messages are not private. Do not send confidential personal or financial information by e-mail. * Check for endorsement by an association or a quality assurance program.
CMA members will not send you marketing e-mail without your permission and will give you the option to decline to receive further e-mails at any time. * Talk to your children about online activities. Instruct them to keep their personal information private unless you approve. Chapter 7 – Q 4: Gary Hamel, a leading strategy consultant ,contends that managers as well as Wall street analysts like to talk about business models but few of them could define “what a business model or business concepts really is” Describe the major components of a business model and discuss how these components are linked o the benfits a firm provides to customers.
BUSINESS MODEL A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, or other forms of value). The process of business model construction is part of business strategy. In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. Hence, it gives a complete picture of an organization from a high-level perspective.
Whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. The essence of a business model is that it defines the manner by which the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit: it thus reflects management’s hypothesis about what customers want, how they want it, and how an enterprise can organize to best meet those needs, get paid for doing so, and make a profit. 2] Business models are used to describe and classify businesses (especially in an entrepreneurial setting), but they are also used by managers inside companies to explore possibilities for future development. Also, well known business models operate as recipes for creative managers.  Business models are also referred to in some instances within the context of accounting for purposes of public reporting. A business model represents how a company makes or intends to make money by turning its innovation into profit keeping the customer needs in mind Producer :-
Each model includes the entity that offers a product or service. In most models, the company itself fills this position and is the producer of the product. Sometimes, for example, the company delivers, rather than makes, the product. That company, then, is the producer of the delivery system. CUSTOMER :- Hence from a user point of the company should ensure if the delivered product has taken care of customer requirements. Offer or Value Proposition The value proposition is the perceived value your products provide as the solution to the consumer’s problem or need.
Typically this is a physical product, but services, digital products, intellectual property and ideas are all value propositions. Often, companies will offer a product and a related service together, such as a car and its maintenance. CUSTOMER :- Value proposition ensures the right values and solution the customer receives from the benefits provided to him Target Market Segment The targeted market is the group of consumers your plan to offer the value of your product to. Since different markets use the same or similar products, adding multiple segments can increase the potential gain for your company.
CUSTOMER :- Target market segment is the right focused product , advice or decision a company makes keeping the customer benefit and needs as per the location . Distribution or Movement Channel Getting your product to its target market, from advertising to retail outlet, is the distribution, or movement, channel. This establishes the means by which your business relates to your customers. CUSTOMER :- Movement Channel & Distribution is to get your product to the targeted customer needs or providing with the correct advice . Customer Relationship
How you establish relationships with your various customer segments is your consumer relationship. It defines how you gain their trust and deliver your product. Brand recognition falls under this area, as does customer service. CUSTOMER :- For any business a customer relation is the most important service to be provided to the customer as it is this relation, issue solving & right advice is what helps in customer retention for a longer time which yields in better & profitable returns to the firm. Value and Resource Configuration
How you utilize the activities, personnel, and resources necessary to produce your product are your value and resource configuration or value chain. This configuration is the basis for your cost and revenue structures. Core Competency The basic knowledge, skill set, abilities, and expertise required to produce your product is your core competency. Initially, it rests in the owner-innovator and the team she surrounds herself with to bring the product to market. Network or Affiliation Partners The partner network represents agreements between your business and other companies necessary to produce and market your product.
They include materials and parts suppliers, retail outlets, shippers, advertising agencies, and media outlets. Commercializing the value of your product relies on your partnerships. Cost Structures The expense required to manufacture a product or provide a service is the cost structure. This includes fixed costs such as leases or mortgage payments, and variable costs, such as research and development, marketing, shipping, and payroll. The ratio of fixed costs to variable costs represents the cost structure. Revenue Streams
The ways a company makes income are its revenue streams. Most often this is income due to sales. However, it can refer to bartered goods and value-added returns from consumers, partners or third parties such as unsolicited viral or social marketing. Chapter 11 – Q 2 :- When a company buys a high-end document processor from Xerox or Canon, it is buying a physical product with a bundle of associated services. Describe some of the services that might be associated with such a product. How can buyers evaluate the quality or value of these services? Business Process Optimization:
Canon business process optimization analysts can examine your document processes, assess your infrastructure, identify your needs, and implement solutions that include everything from automating manual processes to increasing the effectiveness of communication. * Business Workflow and Design: Analyze paper intensive business processes and optimize utilizing document capture, processing, and management technologies. Although businesses invest heavily in IT infrastructure, too often decisions about document processes are either not addressed or left as an afterthought.
As a result, your organization may be relying heavily on inefficient processes to send, share, store, and retrieve information. This can drive up costs and cause your business to run less smoothly than it should. Canon Workflow Analysis & Design advisors can examine your document processes, assess your infrastructure, then identify your needs and match them with the latest improvements in technology. They can recommend solutions that include everything from automating manual processes to increasing the effectiveness of communication—while making it easier to create, search, extract, route, and manage documents and data. Output Analysis and Design: Analyze output processes and associated costs and optimize utilizing output management technologies. It’s relatively easy to find out how much you pay for paper or toner, but controlling the total cost of a device fleet is a different story. How much electricity do your devices use? What are your network maintenance costs? Do you have the right number of devices per square foot or per employee in your office? Might a transition to a Managed Document Services engagement work better for your business?
While some providers offer basic reporting on device usage, Output Analysis & Design services offer the in-depth, actionable information you need to see exactly how your organization can improve efficiency and reduce expenses. Output Analysis & Design may be engaged on its own or as part of a complete Managed Document Services engagement. The end result is a realistic plan for moving forward that takes into account the devices you have, investments you may consider making, and software that can streamline service and maintenance.
Canon Output Analysis & Design can also help you plan for and initiate a Managed Document Services arrangement designed to increase uptime and reduce your total cost of ownership * Imaging and Records Management: Canon Professional Services provides onsite and offsite imaging services to electronically capture documents and index the important information for quick and easy retrieval. Canon Professional Services can also engage certified Records Management experts to assess, analyze, design, and implement a records classification scheme inclusive of retention and disposition schedules and electronic storage and retrieval systems.
Imaging Services: Provide onsite or offsite service of scanning paper information, indexing key attributes, and storing in digital media and/or back end system. Often utilized in conjunction with Records Management Services. Records Management: Assesses, analyzes, and designs records classification schemes inclusive of retention and disposition schedules and electronic physical storage and retrieval system. Creates a records policy and helps promote a compliance with industry standards and government regulations Security Services: Canon Professional Services can provide a comprehensive review of your device, document, and communication security as well as find potential risks, and take appropriate measures to reduce risk. Authentication and Confidential Information Protection: Implement authentication and related solutions on office equipment to help ensure compliance with security policies. Security Guidelines: Canon Professional Services can undertake a comprehensive review of your security environment.
The team can analyze processes, locate vulnerabilities, and then recommend appropriate measures and systems to keep information safe. They can communicate where your organization may be in compliance and where hidden vulnerabilities may exist. * Production and Color Workflow Services: Canon Production and Color Workflow Services focus on helping high volume print shops and organizations manage change and take advantage of new opportunities in the marketplace. They can streamline the deployment of new hardware, software, and services, while maintaining your current lines of business and levels of quality production.
In addition, they can help you achieve the standards-based color and streamlined preflight and processing workflows you need to output jobs correctly every time. The buyers can evaluate the quality or value of these services by below mentioned points: * Business-to-business (B2B) manufacturing firms increasingly integrate services into their product portfolios under the same brand umbrella. This article aims to develop a conceptual model of the drivers of success for such B2B product-to-service brand extensions. * Design/methodology/approach – The research considers the drivers of roduct-to-service brand extensions success from an organizational buying behavior, branding, and service-dominant logic (SDL) perspective. * Findings – In their product-to-service brand extensions, B2B firms are more likely to attain success if they have well-regarded brand reputations, relevant service competencies, and strong buyer-seller relationships. In addition, shared innovativeness, an ability to enhance utility and/or create transaction efficiencies, and effective marketing support are proposed to positively affect brand extension success. Research limitations/implications – Future studies need to test the proposed model. * Practical implications – The propositions encourage managers to develop product-to-service brand extensions according to their ability to add customer value and reduce risk rather than on the basis of the perceived fit between the service extension and the existing brand name. * Originality/value – Relatively few existing studies consider brand extension success, and virtually none of them address product-to-service brand extension success in a B2B context.