7 B2B Between 2 or more businesses Yankee group predicts that American B2B commerce will grow 41% annually over the next 5 years.The Gartner Group has estimated that the B2B industry will be a $7.3 trillion worldwide industry by 2004.
8 Top 4 B2B Industries by Volume Increase Estimated Online Sales Projected Online Sales IncreaseIndustry in 1999 (billions) in 2004 (billions) %Pharmaceutical $ $ ,050& medicalMotor Vehicles ,189Paper & Office Products ,148Shipping & Warehouse ,024Computing & Electronics
10 B2B Models Marketplace/Exchange E-Distributor B2B Service Provider MatchmakerInfomediaryAuction SitesApplication Service Providers
11 B2B Alliances Industry leaders band together to establish a site Two Goalsto save money and time on purchasingto save money and time on sales
12 Government E-commerce Government-to-citizen transactionsGovernment-to-government transactionsGovernment-to-business transactions
13 B2CSurvey commissioned by “Parade Magazine” found that 85% of Internet users were also Internet shoppersWhy do consumers prefer to shop and buy on the Internet?
14 Potential limitations of B2C growth Home PCsExpensive TechnologyComplex software interfaceSophisticated skill setCultural attraction of physical markets and traditional shopping experienceGlobal inequality limiting access to telephones and PCs
15 B2C Models Store front or E-tailer model Portal model Dynamic-pricing modelContent Provider modelStock TradingTransaction broker model
16 B2C Models cont. Service Provider model Community Provider model GamblingSoftware SalesPerishables OnlineBill Presentment and Payment
17 Why do B2C companies fail? Lack of a solid business modelBad financial planningInability to compete with larger, better-funded, or better-knows firms
18 Why do B2C companies succeed? Meet a needTotal ServiceInteraction and PersonalizationUse of Technology
19 C2C Consumers sell products or services to other consumers Estimated to be over $5 billion in 2001Forrester Research forecasts consumer online action market will grow to $19 billion by 2003Auction model
20 C2BConsumer takes the initiative in the buying and selling relationship to contact the businessSmallest and least-developed sector
21 P2PEnables Internet users to share files and computer resources directly without having to go through a central server
22 M-CommerceUse of wireless digital devices to enable web transactions