B-C Model
B-C Model refers to the business-consumer model. It is the method that is employed to commercial transactions to those that deal in goods and services to the clients (consumers) using the internet. Sometimes, this type of business model is referred to as B2C.
Dell Incorporation is an international Information Technology company that is headquartered in Texas, U.S.A.The company upgrade, trade and prop up a varying number of services that are connected with computers and other products of similar ilk. The name Dell is borrowed from its initiator, Michael Dell. Among the services that it deals with are electronic commerce (e-commerce) and supply chain management. The Dell Incorporation company is mainly involved in two types of business in e-commerce. These two types are: business to business and business to consumer.However, in this chapter, we shall focus on the business to consumer model and how Dell Computer Company applies it. (Pride William, 2008)
B-C model in e-commerce: This refers to the process of transacting business via online, making use of the internet and other technology. There are varying businesses that are conducted online among them: selling online, market research, paying for the goods and services, showing product data, promoting and publicizing the company concerned(corporate public relations),customer support advice, gathering market information and tracking down shipments. The Dell Computer Incorporation projects business to consumer model. In excessive modification, the Dell Incorporation clients make up their choices of the goods sold from a kind of menu that is presented by the dealer. To enhance a smooth flow of the business transaction, the Dell Company came up with a kind of ‘mail order personal computer Company’ that catered for the transactions via the internet. The business to consumer model targets individual buyers. This type of model can be in the form of varying ways such as; shopping electronically and product delivery .With a kind of shrewd innovative and being industrious, the Dell Company came up with a way to get comments through the trend that they are using to procure goods and services. For instance, the service providers, companies and industries can deduct the customer needs and fats moving products and also introduce fresh products and other services using the information acquired.”…The internet has opened up ma new range of possibilities for enriching interactions with customers. Dell has succeeded in attracting customer orders and improving services through placing configuration, ordering and technical support capabilities…emphasize just-in-time inventory, build-up-to-order production systems, and tight integration between the sales and production planning…it has implemented a consumer driven build to order business model…”(Malone,2003 page 78).However, Dell must figure out the following questions: will the consumers use websites merely to simplify and speed up comparison shopping? Or will the consumers purchase services and products online or will they end up purchasing at a traditional store? What selection of products (goods) and services will be the most favorable to the consumers who buy goods and order services online? Which products and services are the best equipped to consumers at this boom of online shopping? By engaging in a consumer-business model, the Dell becomes more involved and responsive to its clients. Still it can be ahead of its business rivals and it can cash in much money than them and have a big portion of customers.”…when Intel releases a new microprocessor, as it does every year, Dell can sell it to its customers within seven days compared to eight weeks or more for less Internet enabled competitors…”In this way, the Dell company changes the customer relationship. To show that business to consumer model spells a boom for business there are some of its financial figures that may sum it all.”…For example, Dell Computer’s sales online more than doubled during 1998 rising to more than $ 14 million per day and accounts for 25 percent of the company’s total revenues…quarter and of 1999,online sales rose to a further average of $ 18 million per day. Dell had expected that to increase to 50 percent by 2000…forecasters had projected retail sales in the range of $ 40 billion by 2002… (Canzer, 2006)” (Mahbubur, 2000).If a company uses the business to consumer business and if it provides cutting edge services to its clients, and “round-the-clock access” to their products, they ensure that there is long term relationship with their clients. In doing so, the company can hedge its bet on long-term profitability since habitual customers will return the money that the Dell company invested (DElabay Les, 2008) over and over again.
Canzer, B. (2006). E-Business:strategic thinking and practice. New York: Cengage Learning Press.
Pride William, H. R. (2008). Foundations of Business. New York: Cengage Learning Press.
Turban, E. (2004). Electronic Commerce:a managerial perspective. Indiana: Pearson/prentice.
Delabay Les, B.J.2008.Intro to Business. New York: Cengage Learning Press.
