Business-to-business business model in China

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

A． Segment and evaluate the market entered by Business-to-business business model.

In China, we have to consider the market for business-to-business models to have enough buyers and sellers and market segmentation. If the market supply and demand are not large enough, the market will become very narrow, even if the market-makers can successfully start the markets, but also because the market lack of capacity, no development potential, quickly lost the meaning of expansion. Like gold, oil, reserves are not big enough, no mining value. At the same time to ensure that the market has liquidity. If the market supply and demand are large, but if the buyers and sellers are not active, the market does not have enough flow, then the most is "there is no market", the business model is only an empty shell. Examples of similar failures are many, such as foreign boo.com. Finally, the choice to engage in business-to-business items. Generally speaking, it is easy to succeed in the Business-to-business model, the goods should be more easily warehousing. For example, e-steel operating steel, aluminum operating aluminum and so on are in line with this requirement. In addition, we found that easy to engage in futures trading varieties, can meet the above conditions. Therefore, we boldly assert that the future success of the business-to-business model, must be operating which can carry out futures trading varieties of the website.

Second, the application of business-to-business business model must bring value value-added services, otherwise lost the meaning of existence.

The above mentioned is to subdivide the business-to-business market. The purpose of subdivision is to enable middlemen to meet the needs of market segments through value-added services. From the current business-to-business operation in China, information exchange is the primary goal of each website. This is reflected in the survey of various types of websites, many of the manufacturers to enter the site is to understand the purpose of the market. And the United States to participate in E-commerce enterprises, trading is its primary purpose. According to the 3/70 rule, three companies typically account for 70% per cent of each market segment. Therefore, each business will strive to enter the "three A" list, otherwise it will not survive.

Value multiplication ratio in business-to-business electronic commerce
Industry type Buyer Seller's Market owner technology provider
Buyer height Concentration 70 10 10 10
Seller Height Concentration 20 60 15 5
Distributed Trading Party 25 25 35 15

Third, business-to-business business model must be matched with the strategic competitiveness of enterprises.

Compared with the foreign business-to-business development, China is a government-driven e-business, which has obvious differences with the American enterprises as the leading power to promote E-commerce. So it is easy for the government to promote blind investment, and give up its competitive advantage, which is currently supported by some government sites miserable situation.

Enterprises in the establishment of Web sites, network management and e-commerce activities, we must start from their own reality, combined with the core advantages of enterprises, industry characteristics, size and other factors, determine the appropriate e-commerce strategy. and must adhere to the principle of gradual and progressive development, should not be followed, follow the trend, so as not to achieve the effect of overdue, but to the enterprise back a new baggage.

Iv. the prospect of business-to-business in China.

This not only affects the formulation of enterprise strategy, but also directly related to the development direction of China's E-commerce is correct. China's business-to-business enterprises are not the same as the U.S. into Business-to-business enterprises. China's enterprises are far smaller than the size of the United States, in particular, many of our web sites are set up to target the small and medium-sized enterprises, which is also a small amount of business-to-business transactions in China.

First, the network economy consists not only of internet companies, but also of traditional companies that use the Internet to drastically reduce transaction costs and provide better services to consumers, as well as manufacturers and service providers for the development, production, marketing or provision of equipment, software and services required by Internet and network companies. In other words, only the traditional companies use network technology to transform the value chain, reduce production costs and transaction costs, the Internet economy can have enough support.

Secondly, we should see the positive role of the Internet in economic and social development. As a result of the introduction of network technology, the United States in 1995-1999 the number of secretaries reduced by 17%, wholesale and retail procurement staff decreased by 16%, thereby saving a lot of human capital. Network sales to achieve the traditional circulation can not do things, the U.S. supermarket Kmart on the internet to sell large-screen color TV; e-Harbour auction millions of kinds of goods online; China Merchants Bank's online business-to-business transactions 2.5 on the cumulative transaction of 600 billion yuan. The 1999 network economy brought jobs to 650,000 Americans and created 500 billion of billions of dollars of income, and now there are 2.48 million of US employees directly reliant on the internet economy, more than the total number of people directly dependent on insurance, communications and utilities.

The two years of the United States General Electric under the leadership of Welch, the full use of network technology, for General Electric again create brilliance. The success of GM is far from being ranked as the top 500 in the world, but it has set a good example for other traditional enterprises to use network technology. Oracle's predictions may be correct, either E-commerce or no business.