Comparison of B2B and B2C Companies

Topics: Marketing, Business-to-business, Sam Walton Pages: 3 (1053 words) Published: June 9, 2007
Comparison of B2B and B2C Companies
This report is a supply chain comparison between two companies in which one is a business-to-business (B2B) model company and the other is a business-to-consumers (B2C) model company. The comparison will be between the companies Wal-Mart and Grainger. Wal-Mart is a well-known conglomerate known around the world that is in the retail business that seeks to sell products to consumers at a significantly reduced discount compared to its rivals. Grainger sells supplies to different companies through the company's own website. First, let's start by distinguish between what a B2B company is and what a B2C company is. The definition of a business-to-business is when businesses sell products or services to other businesses, hence B2B. Grainger is a business-to-business company. A business-to-consumers description is when businesses sell products or services to individual consumers, hence B2C (Schneider, G. Electronic Commerce: The Second Wave). Wal-Mart is a business-to-customers business. As one could imagine, each model has a different aspect and strategy on how to sell its product or service. I will begin with Wal-Mart's supply chain method and attempt to break each step down to the last process, which is when consumers by their product. Wal-Mart

Almost every American has shopped at least once at a Wal-Mart store located somewhere in the United States. The first store ever opened was in tiny Rogers, Arkansas back in 1962 by an entrepreneur named Sam Walton. At that time, other retail stores such as Kmart and Target were just beginning too. Even though each three stores offered similar products and services, Walton's store focused on serving the customers and giving them what they wanted, which was cheaper prices. In Walton's autobiography, he describes what gave his Wal-Mart stores the edge over its competition. "The secret of successful retailing is to give your customers what they want, and really, if you think...
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