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e-Business Models The remarkable growth of the Internet and connectivity to the Internet by individuals and businesses alike has brought many opportunities to create new industries and new efficiencies within businesses and between businesses. These opportunities can be seen in the different e-business models that are currently providing benefits to organizations. This paper evaluates how B2B companies like merisel.com establish webs sites that add value for suppliers and other business users. This paper provides a value analysis and justification for the product, service and information exchange of Amazon.com a leading B2C web site. It evaluates how C2C companies like Edeal.com forms virtual marketplace communities. It also focuses on how these sites are set up through “Porter’s Value Chain” and an “Analysis Task Chart” supplied by the University of Phoenix. The final section concludes the paper. Business to Business (B2B) Model Analysis Electronic commerce that creates relationships between businesses is known as a Business-to-Business (B2B) model. B2B EC models are expected to reach ten trillion dollars by 2005 (Turban et. al. 2002, p. 401). B2B transactions involve either spot buying (i.e. purchase of good and services at market prices) or strategic sourcing (i.e. long term contracts based on negotiation between buyer and seller). Transactions occur within company-centric models, many-to-many marketplaces, or other models which help eliminate paper, speed cycle-time, reduce error, increase productivity, reduce cost, and increase customer service and partnership management (pg. 403, 404). An example of a B2B business is merisel.com as discussed below. Meriesel.com Merisel provides software dealers the license to resell. The company distributes software licenses and reseller products from vendors including as Borland, Computer Associates, Corel, Network Associates, Panda, and Symantec (Internet). It also provides resellers with the latest vendor promotional programs, volume discounts, and technical data and support. In addition, Merisel offers e-commerce and logistics support services. The company follows a commodity sales model in its B2B strategy. It builds partnerships with various software vendors and sells licensing through its reseller network. Its customized electronic commerce application was designed to improve and develop strong Internet connections with their customers. In addition to quick searches, the on-line catalog encourages orders over the Web and offers logistic services and e-commerce solutions.
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