Tuesday 29 July 2014

BUSINESS MODELS

The below are a few examples of Business Models will explain the sales and purchase transactions that happen at various levels in a supply chain :

1. B2B (Business to Business)
2. B2C (Business to Consumer)
3. C2B (Consumer to Business)
4. C2C (Consumer to Consumer)
5. B2G (Business to Government)
6. G2B (Government to Business)
7. G2C (Government to Citizen)

1. BUSINESS to BUSINESS

This involves transaction between two business organisations and it will not involve the end customer. A good example will be procurement of raw material by a Manufacturer from the source/supplier. Another example in Retail supply chain will be purchase of Goods by the Wholesaler from the Manufacturer

2. BUSINESS to CONSUMER

This involves simple sales transactions from a Retailer to the end consumer/customer. With retailers shifting to E-Retailing, this form of business has increased multiple fold over the recent years. Some good examples will be FlipKart, Amazon, etc.

3. CONSUMER to BUSINESS

This is a new form of business which has come into existence majorly due to dotcom boom. It is also known as reverse auctioning where in a consumer can promote or advertise a service provider and be benefitted in money or other means for purchases made through his promotion or for this promotion. A simple example can be, a consumer writes or promotes a company in his Blog or Website and when another consumer uses the link to purchase goods from the service provided, the service provider will pay a promotion charge to the promoter.

4. CONSUMER to CONSUMER

EBAY is a very good example of consumer to consumer business model. This involved tow consumers , one selling a product or service and the other buying and paying for the product or service bought. The third party will be the online portal where the advertisement and the transaction happens. There is huge boom in the used goods market by the advent of such E-commerce sites benefitting both the buyer and the seller

5. BUSINESS to GOVERNMENT

This is a business model in which service providers and product manufacturing advertise or pitch their products/services to the government for present or future use. Private players in defence industry
is a very good example where in new technology and weaponries are presented for trial to the defence ministry and these players sell both product and services to the government upon signing the respective deal.

6. GOVERNMENT to BUSINESS

In this form of business is used in E-Governance wherein the government will have its official website which will act as a one stop access between the service providers and the government. The respective service provider will touch base with the respective government organisation to pitch their bid and finalise a deal to execute the projects.

7. GOVERNMENT to CITIZEN

This is usually a non-profit business model where in government will sell products to citizens at reduced or highly subsidised prices. This model is widely used by government of India to provide relief material and basic food supply to the needy and poor people.

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