The Business to Customer (or B2C) and the Business to Business (or B2B) business models are both models that a business can adopt. Their titles are self-explanatory: Business to Customer businesses sell their products directly to customers, and Business to Business businesses sell their products to other businesses. Although this is the most obvious of their differences, they have other significant differences that must also be discussed. Business to Business and Business to Customer businesses also have similarities that will be discussed. Business to Customer businesses, as previously mentioned, sell their products directly to the customer. Kutz (2016) states that “[Business to Customer] is a synonym for the selling process considered from
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Kutz states that “in general, business interaction between different organizations is considered” and that “[Business to Business] is a synonym for integration and coupling of business processes” (2016, p. 86). One of the primary characteristics of a Business to Business business is that “business processes cross the boundaries of the participating organizations” (Kutz, 2016, p. 86). Essentially, it is important that business processes (e.g. manufacturing, delivery, and communication between businesses) remain consistent across organizations in order for goods and services to pass seamlessly and efficiently across their borders. For example, instead of goods being held up in a warehouse for five weeks, businesses that communicate well with each other can reduce the time that goods are held up to days, or even hours. Businesses (that sell) are happy because they can sell efficiently, and businesses (that buy) are happy because they are receiving what they paid for quickly. Another key characteristic of Business to Business businesses is that their business rules must be consistent with those of the businesses that they are selling to. Kutz (2016, p. 87) states that “business rules cover decision rules for process management, rules for exception handling, a comprehensive data model including input requirements and output descriptions, rules for the operation of interfaces, policies for the usage of …show more content…
Dunne (2011) states that the similarities are that “both require a sales process, alignment with marketing, and excellent customer
Kutz states that “in general, business interaction between different organizations is considered” and that “[Business to Business] is a synonym for integration and coupling of business processes” (2016, p. 86). One of the primary characteristics of a Business to Business business is that “business processes cross the boundaries of the participating organizations” (Kutz, 2016, p. 86). Essentially, it is important that business processes (e.g. manufacturing, delivery, and communication between businesses) remain consistent across organizations in order for goods and services to pass seamlessly and efficiently across their borders. For example, instead of goods being held up in a warehouse for five weeks, businesses that communicate well with each other can reduce the time that goods are held up to days, or even hours. Businesses (that sell) are happy because they can sell efficiently, and businesses (that buy) are happy because they are receiving what they paid for quickly. Another key characteristic of Business to Business businesses is that their business rules must be consistent with those of the businesses that they are selling to. Kutz (2016, p. 87) states that “business rules cover decision rules for process management, rules for exception handling, a comprehensive data model including input requirements and output descriptions, rules for the operation of interfaces, policies for the usage of …show more content…
Dunne (2011) states that the similarities are that “both require a sales process, alignment with marketing, and excellent customer