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E-Business Relationship Models The growth of the internet has been breathtaking The growth of business on the internet has been nothing short of amazing The Internet has evolved into potentially the most powerful business channel ever the Internet is like a weapon sitting on a table ready to be picked up by either you or your competitors Ch 1 P 1 of 17 Plant The impact of the Internet on business has been dramatic How a business utilizes the Internet can make or break a company It is the ability to differentiate a product on the internet new or existing and react to those forces on the internet that is the key success factors Companies are subject to traditional rivalry factors such as the ability to differentiate the product and pressure from competitors when large changes in capacity are augmented to the marketplace or when diversity of the market acts to segment that market However it is the organizations ability to react to these forces within the Internet markets that differentiates them and their potential strategic options Ch 1 P 3 of 17 Plant By breaking down the different relationship models and understanding the benefits and drawbacks of each model an organizations management will make better decisions There are five different e-business models an organization on the Internet can engage in they are B2B B2C C2C B2G and E-Consortia This adds another key of success to your company on the Internet Determine the core competencies of your organization determine the limitations in the new marketspace and assess the mechanisms available to move forward Ch1 P 1 of 1 Plant The first e-business model is B2B or Business to Business model This is a venture that services the needs of other businesses There are two types of B2B portals There are the vertical portal and the horizontal portal A vertical portal provides specialized services across several industries a horizontal portal primarily provides a set of services
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