Syed Muhayman Shah 12011028006Shafique Aftab 12011028002Qasim Arshad 12011028013Shehryar Ihsan 12011028005

Group Members :

B2B Integration: Challenges for business organizations in

Pakistan

There are two main types of E-commerce models.

B2C ( Business to consumer )B2B ( Business to Business )

Types of E-Commerce :

B2C platforms are those where Businesses sell products to end consumers rather than businesses.

This category expanded greatly in late 90s.

Popular items sold using B2C are electronic goods, clothes, music, beauty products etc.

B2C ( Business to Consumer ) :

Amazon.com

Flipcart.com

Daraz.pk

Examples:

In B2B e-commerce exchange of products, services or information take place between businesses instead of business and consumer it also involves a manufacturer and wholesaler, or a wholesaler and a retailer.

B2B ( Business to Business ) :

ALIBABA.COM

QUILL.COM

EBAY.COM

EXAMPLES :

Through B2B business we can reduce of operational cost, increase sale and built the strong relationship with trader.

Buyer Benefit: Reduce inventory costMore choices and better pricingEfficient logisticsLower cycle time

B2B Benefits

Supplier BenefitLower sale and marketing costReaching new customerReduce the process cost of order managementBetter customer support

Overall benefitsIncreased market efficiencyGreat market intelligence

Cont

Lost of opportunities as compare to businesses using B2B platform.

Increase in costs.

Lot of marketing expense.

Lack of exposure to international markets.

Disadvantages of Not using B2B :

The B2B E-commerce is not very old concept but now a days very popular.

The B2B integration means to integrate,

optimization and automation of your key business process.

Through B2B integration the organization automates and streamline the buying and selling the intermediate product.

B2B Integration

According to forbes, B2B market value is expected to rise up to 6.7 trillion dollars in 2020.

The number of businesses using B2B platforms are increasing world wide.

In Pakistan businesses are also adopting this change.

According to AliBaba.com , the number of registered Pakistani businesses on AliBaba.com was 0.7 Million in 2013.

As of now, more than 1.4 million products from Pakistani businesses are registered on AliBaba.com alone.

Which shows that huge number of local businesses have their presence on B2B platform.

It helps businesses to offer their products to foreign businesses and helps to generate revenue not for businesses but also for Pakistan.

Many Pakistani businesses also use B2B platforms to purchase Raw material or even fully processed products at cheaper and competitive prices.

Which give them edge over others.

Many Pakistani Businesses are using B2B platforms but still majority of businesses have no presence on such platforms.

Which definitely negatively effecting the businesses as compare to others who are using such Platforms.

Some of the major hurdles which are preventing such Businesses from their presence on such platforms are :

Challenges :

MISTRUST :

Counterfeiting and distribution of below par products in the face-to-face transactions is a common problem in the country.

How can people be expected to trust the sellers whom they do not know, and who would deliver goods online/offline after the payment is made.

LOW LITERACY RATE :The literacy rate of the country, according to

official figures, is around 54 percent. From them, only half are computer literate.

Similarly many of businessmen, specially in family oriented businesses don’t have knowledge regarding such things.

Which is a big hurdle. Gov. and business bodies must create awareness regarding that.

LACK OF E-TRANSACTION SUPPORT :

Online payment systems are an essential part of e-commerce.

In Pakistan many people still don’t have Credit cards, which are essential for e transactions.

Govt should create better rules for e transactions at international level.

POOR DISTRIBUTION CHANNELS :

An essential part of e-commerce is establishment of cheap, quick and reliable transportation channels for the physical distribution.

In Pakistan, distribution and logistics companies are not very efficient but very expensive, which increase the product costs.

Railway is a cheaper way of goods transportation, so govt. should focus on that.

LANGUAGE BARRIER :

English is an international language and mostly foreign businesses use english for communication.

Many small scale Businesses don’t have any expertise in english which is a big problem.

So if business want their presence at such forums, they must improve themselves in this area.