Business-to-Business Markets Essay

1293 Words 6 Pages
Business-to-business markets have a limited number of buyers, which creates a large purchase volume (Clow & Lascu, 2012). Most manufacturers sell directly to the retail stores because it makes the products cheaper and no one in between needs to earn a profit. It then provides consumers with a lower cost which in turn gives the retailer and manufacturer more profits. This is a direct channel of distribution because it does not have to go through any intermediaries before arriving to a retailer (Clow & Lascu, 2012).
Authorized retailers that do business with Microsoft are Best Buy, Staples, Fry’s Electronics, Micro Center, TigerDirect, Nebraska Furniture Mart, and Walmart. A consumer can either purchase the Microsoft Surface at these
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Ltd.; Precision Squared Technology Corp (PSTC); Primax Electronics; and Sysgration Ltd. (“Licensed Manufacturers,” 2013). All of these manufacturers make different parts for Microsoft’s array of products that resemble the Surface tablet.
The specific manufacturer of the Microsoft Surface is a company called Pegatron. Pegatron is a Taiwanese electronics manufacturing company that serves worldwide as one of the top original design manufacturers (ODM). This company is known for making netbook computers, game consoles, desktop computers, notebooks, handhelds, video cards, etc. The company tries to keep their products diversified, unique, and flexible. Their goal is to help customers with the future (“Who We Are,” 2008).
Two years ago in April, Microsoft Corporation and Pegatron Corporation signed a business agreement providing patent coverage for different Pegatron products. The products include different electronic devices that run off of Androids and Chrome platforms. This agreements added to Microsoft’s other top four Taiwanese ODMs. (“Microsoft and Pegatron,” 2012). Pegatron’s business operations extend globally. Facilities were placed across the globe which include the following locations: Indiana, United States; Ostrava, Czech; Suzhou, Shanghai and Chongqing, China; Tokyo, Japan; Taoyuan, Taiwan; Sao Paulo, Brazil; and Juarez, Mexico. They set up these locations according to strengths of the area and to make sure it would satisfy all their customer’s…

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