Home    Internet Marketing                                    Ward Hanson   Stanford GSB

 B2B eCommerce  

Learning Objectives

Direct vs. Intermediary models

Channel conflict

Business Triggers

Organizational change 

Joint Ventures & Subsidiaries

 

 

Case:   Eastman Chemical

 

 

 

 

 
 
Readings & Tasks
R. Hall, B-to-B Auctions
McAfee: "Napstering" business
Case:  Eastman Chemical

Example Sites: Some top B2B ecommerce sites  
Cisco
Dell Computer
Grainger
Avnet

B2B models
Small Business Advice special issues about email marketing to businesses.
B2B marketing articles about general B2B marketing.
 

 
Newstand
___/ 04-12-03\__ "Europe's Borderless Economy:  The Net  Business Week online 
___/ 01-29-03\___  Web Services Bridging the Gap:  Web services get real for B2B settings, ZDNet 

 

 No area of online commerce has been subject to wilder swings than online B2B startups.  One example is  Chemdex which has gone from private, IPO, a market cap exceeding $10 billion, to renamed and barely alive in less than 2 years.  On the other hand, traditional companies are finding great success in saving money and speeding up procurement with online transactions.       Patron Saint of B2B Ecommerce - John Chambers of Cisco

B2B eCommerce Measures:

  • What are the design goals of your business-to-business activities?   Jupiter Media Metrix has found a number of goals cited by supply-side private networks.  These include [Closer supplier relationships 61%, Closer channel partner relationships 46%, Faster time to market 46%, Process cost savings 39%, Reduction in inventory 32%, Risk management 24%, Analytics 20%, Higher-quality products 19%, Increased market share 19%, Lower product costs 15%].  

  • What is the necessary liquidity for a B2B marketplace?   Reaching critical mass has proven difficult for many online business activities.  Judging the necessary liquidity, both in terms of  buyers and sellers, is a crucial and challenging marketing task.

  • Organizational R.O.I.  Successful adoption of B2B commerce requires organizational buy-in.  Many efforts fall short of their goal because the benefits are spread unevenly throughout organizations.  Important issues include such factors as

    • Departmental incentives for savings vs. risks of disruption,
    • Legacy systems and available tools,

    • Skill development and training costs.