BUSINESS

How Many e-Business Models Are There?

e-business

There are mainly two categories of e-Business in relation to the type of business that can be carried out: B2C and B2B. From Web Tech Crunch we explain all the types of models that have emerged with the digital age.

 The two most relevant categories are:

  • B2C (Business to Consumer) is the business activity directed to the customer.
  • B2B (Business to Business) is business activity directed at other companies.

But in addition to these two types of business, a set of subcategories have appeared:

  • B2A (Business to Administration) is the business activity directed to the Public Administration.
  • B2E (Business to Employee) is a business activity aimed at employees.
  • B2I (Business to Investors) is a business activity aimed at investors.

Below we will delve into each of the different modalities:

B2C (BUSINESS TO CONSUMER). CUSTOMER BUSINESS.

This type of activity deals with the sale of the company’s products and/or services to ordinary consumers and improves the service provided to customers as well as generating opportunities to increase sales and income. With a B2C solution, the company offers its customers the convenience of making purchases on the Internet, as well as attracting new customers.

The advantages of B2C for the customer are that they are informed of the status of purchases, they can compare prices quickly, consult the information in great detail, but from a distance and more economically.

For the company, it means a lower cost of infrastructure, a short-term amortization, improvements in inventory management, greater use of human resources in the purchasing area, geographic market expansion, and improvements in purchasing management and sales process.

B2B (BUSINESS TO BUSINESS). BUSINESS TO BUSINESS.

In this case, B2B refers to the automation of the supply chain and the commercial relationship between companies through electronic means. With this type of business, there is an opportunity to reduce costs and increase revenue. The company can check its suppliers on their stock availability and track orders throughout the supply chain. The costs of the order are also cheaper, they can communicate with other companies in other places and above all, a lot of time is saved.

Some advantages in relation to the internal functioning of the company are the reduction of the procurement time, its planning, the need to integrate all the systems, the reduction of inventory, and the reduction of the manufacturing cycles.

With respect to customers, it improves its service, allows access to a greater number and diversity of products and services, and communication between the customer and the supplier.

In addition, B2B allows greater internationalization of both suppliers and customers and makes the value chain more efficient.

B2A (BUSINESS TO ADMINISTRATION). BUSINESS FOR THE ADMINISTRATION.

It is about the interactivity of the company with the administrations on issues such as the presentation of applications, the payment of fees and taxes, requesting information … The advantage that is provided with this type of business is greater agility in the procedures, mainly in the administration department.

B2E (BUSINESS TO EMPLOYEE). BUSINESS FOR EMPLOYEES.

It allows the reorganization of employee relations with the company itself, optimizing the use and management of information. It is a portal that allows employees, through the company’s intranet, to access training courses, consult files, order office supplies, etc.

B2I (BUSINESS TO INVESTORS). BUSINESS FOR INVESTORS.

It consists of capturing projects, analyzing them, correcting them, and making them available to investors. The advantage is that they analyze projects that have already been filtered and improved. In short, B2I is the transactions carried out over the Internet between companies and investors.

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