Tutorial 11 (Chapter 12)

Tutorial 11

Chapter 12

End of Chapter Questions (P. 739)

1. List at least five potential benefits of B2B e-commerce. (Question 3)

• Lower administrative costs
• Lower search costs for buyers
• Reduced inventory costs by increasing competition among suppliers and reducing inventory carried
• Lower transaction costs by eliminating paperwork, automation
• Increased production flexibility by ensuring just-in-time parts delivery
• Improved quality of products by increasing cooperation among buyers and sellers
• Decreased product cycle time by sharing of designs and production schedules
• Increased opportunities for collaborating with suppliers and distributors
• Greater price transparency

2. Explain the difference between a horizontal market and a vertical market. (Question 7)

Horizontal market : markets that serve many different industries

Vertical market : one that provides expertise and products for a specific industry

Projects Chapter 12

1. Examine the Web site of one of the e-distributors listed in Figure 12.11, and compare and contrast it to one of the Web sites listed for e-procurement Net marketplaces. If you were a business manager of a medium-sized firm, how would you decide where to purchase your indirect inputs – from an e-distributor or an e-procurement Net marketplace? Write a short report detailing your analysis. (Question 2)