Introduction
A B2B exchange should present Deere with an opportunity to market its products using a cheaper platform. This should in turn reduce its operation cost hence an increase on profits. There is however one big question about the whole exercise. This is on whether Deere should join an existing B2B company or start its own. In my own opinion, I think Deere should first join an existing B2B company then start its own later on. By starting its own B2B Company, Deere will have to invest a large amount of money to jump start the whole process. As it is, Deere does not have enough knowledge in the technology and may suffer extensively if things don’t go as it is expected. By joining an existing B2B company, Deere will be seeking to expand its knowledge on this particular field. It will then follow that when they finally decide to begin their own, they will have enough knowledge on how to run it. (Warden, 2000)
Main Body
What Deere should be asking itself is if they are well versed to begin their own company. There is no doubt that Deere is a big company and has in its possession great resources that should be able to propel its growth in the e-Business technology. But as it is, it’s not only the availability of money that should determine how well one will be successful in a certain business venture. Instead what is required is careful planning and experience in setting up a business venture. This should enable an entrepreneur to weather any economical storm that should come his way. (Warden, 2000)
Deere should first take time to learn where its stakeholders spend most of their time. With the increase in the number of the B2B companies offering the same technology, the market has become crowded more than it has ever been in the recent past. By starting a B2B company it would be very easy for one to dissolve in the haze and confusion of the moment. The thing we should be asking ourselves is if the hype of forming ones B2B exchange is worth the pain of losing ones savings due to lack of careful planning and experience. (Rebstock, Fengel, & Paulheim, 2008, p.33)
Joining an existing B2B exchange will also present the company with an opportunity to become a team player. Since there are many companies in the common pool, Deere will get an opportunity to learn from the other team players in the field. This wealth of experience will present Deere with a good starting point when they finally decide to start their own B2B Company. By forming a B2B Company, Deere will have to advertise the new venture. This in essence costs money that should be used for other profitable ventures. Deere may even use the existing B2B exchange to advertise on its intended venture. This would be like the proverbial killing of two birds with one stone. (Rebstock, Fengel, & Paulheim, 2008, p.33)
The B2B exchange increases the company’s products growth because a company is able to minimize time to advertise. In a B2B scenario, a company is able to advance trade since they are aware of the market well than their rivals or competitors. In this way, they are able to double the business into more markets and remove the unprofitable branch of the company. In the B2B exchange, communication travels faster making it possible to be in touch with the consumers and sellers. (Warden, 2000) This is another major reason why Deere should join an existing B2B company.
In an event where Deere decides to start its own company, it should seek to incorporate other companies that are in the same line of production. This would present it with a platform to learn from other companies who are in the same business. Deere may also decide to incorporate other companies that are outside its production line. This should present it with a platform to learn how profitable other ventures are and may even be a good forum to diversify to other spheres of trade. (Lee, & Whang, 2001)
Deere is presented with a platform of technology options for adapting e-Business. The most important is that Deere will be able to increase sales and therefore minimize wastage. This is due to the fact that by adopting e-business, there will be more routes that the products follow leading to an increase in sales. The company is presented with opportunities to conduct tests and learn new things about other companies. The company is also able to retain customers because they are presented with a cheaper process for the products and services. (Lee, & Whang, 2001)
The nature of providing e-Business technology has become so lucrative to a point where everyone wants to join it. This has however presented one big challenge to the market. The influx has created a situation where many system providers are entering the market not on merit but on convenience. Many providers are doing this without properly considering the implications of the market. This has caused many providers to go out of market while others have merged with other existing providers just to stay in the market. This whole scenario presents a big challenge to a company that is looking for a reliable technology system provider. (Warden, 2000)
There are particular things that Deere should look for in obtaining the right technology provider. The right provider should be a one who has a guarantee of supply which is steady, without any faults or interferences. The supplier should be able to distribute products as well as services wherever they are required and on time. The other criterion is the pace of a supplier in responding to consumer needs. The supplier should respond to the customer’s need quickly and with clear, absolute and correct information depending on the customer’s needs. In case misunderstanding occurs between the supplier and customer, the supplier should be able to handle the changes to the satisfaction of the customer. (Rebstock, Fengel, & Paulheim, 2008, p.33)
Conclusion
Suppliers should maintain the cost of the products at all times while ensuring that the products are as per the customer’s expectations. These products should be environment friendly and safe for the consumers. The company should also possess up to date technology. In this way, the company will preserve its competitive advantage. Paul should look a respectable company that has been in the business for a long time and also serves other respectable companies. This will make Deere avoid a situation where the supplier goes out of business and stops supplying them with technology. (Rebstock, Fengel, & Paulheim, 2008, p.33)
References
Lee, H.L, & Whang, L. ’E-business and supply chain intergration’, working paper SGSCMF-W2-2001, Stanford Global Supply Chain Management Forum.
Rebstock, M, Fengel, J, & Paulheim. (2008).Ontologies-Based Business Intergration. Springer Berlin Heidelberg 1(1):31-78.
Warden, R. (2000).E-Business Standards: Promise and pitfalls. Web.