Analysis of B2B e-commerce with SWOT - Analysis of B2B...

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Analysis of B2B e-commerce with SWOT IntroductionBecause of numerous unique features like ubiquity, universal standards, richness andso on, the e-commerce technology becomes more powerful and popular than previoustechnologies revolutionslike radio,televisionand the telephone(Subba,Metts,&Mora,2003), which leads to a rapid growth of e-commerce. We canclassify electronic commerce transactions by looking at the nature of the participants,then there are there major electronic commerce categories: business-to-consumer(B2C) e-commerce, business-to-business (B2B) e-commerce, and consumer-to-consumer (C2C) e-commerce. This essay will focus on B2B e-commerce, whichrepresents new efficiencies and relationships (Hadjikhani& LaPlaca, 2013). The tradebetween business companies is a large marketplace. According to Hsieh and Lin(2014), in 2012, the total amount of B2B trade in the USA is estimated to be about$16 trillion, with B2B e-commerce contributing about $4.1 trillion of that amount. By2016, B2B e-commerce should grow to about $5.6 trillion in the USA. It shows thatB2B e-commerce has taken a large market share and developed rapidly. In this essay,I will analyze the B2B e-commerce from its strength, weakness, opportunity andthreat. Finally, draw a conclusion with suggestions.Strength of B2B e-commerceThe first strength of B2B e-commerce is its market predictability and stability. B2Bmarkets enjoy more predictability and stability. Whereas the ebb and rise of consumersentiment changes quickly, B2B sector tends to evolve more gradually. Once thebusiness obtain relationships with its customers, its capacity for supplying them couldlast for at least a year or longer. Actually, B2B buyers often sign contracts withsuppliers to guarantee pricing and terms (Karageorgos, Thompson & Mehandjiev,2001). These contracts help the business to plan revenue budgets accurately andefficiently. Besides, B2B e-commerce could own more customer loyalty. The

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