BENT1G3 E-COMMERCE WORLD

Dell is an example of an e-commerce failure in its Business-to-business(B2B) strategies. Dell Computer Corporation is a multinational technology corporation, develops, manufactures, sells, and supports personal computers and other computer-related products. Dell employs more than 82,700 people worldwide. Dell is a large company, so it must compete with all the competitors in the computer industry. The organization must take chances to expand the business. One of the strategies that Dell used is business-to-business (B2B) approach. However the strategy failed. Dell Computer just runs its business-to-business (B2B) online- marketplace about 4 months. After that, Dell closes B2B marketplace. (http://www.out-law.com/page-1374) Dell’s business-to-business (B2B) exchange failed due to many reasons. The primary reason is lack of insight in the research and development areas. Without the knowledge in these areas show that Dell is taken high risk. “Some observers think that Dell’s strong name and recognition may have worked against it, causing the company to be viewed as purely a computer manufacturer rather than a site also for alternative business products” (Opinion Wire. 8 February 2001. www.serverworldmagazine.com). Another reason is Dell gave up too early because they expected cannot make more profits in the near future time.If the business allowed more time to prove it,Dell might able to solve some problems when they found it. One of the ways to do this would be to advertise the B2B reliability and value of their computers. Dell would target their loyalty customers, and build up their brand name. Business-to-business is a good opportunity for the future research and development. In this example, only a few months, Dell has decided to close its B2B Exchange at dellmarketplace.com. It seems that it failed to find any new partners to support the original grouping of Dell, 3M, Motorola and Pitney Bowes. In any case, B2B Exchange would to be a good idea for any company.