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Difficulty: Very hardE-Commerce and E-Business Models

A manufacturing enterprise integrates a digital portal that allows its raw material suppliers to monitor factory stock in real time, generate automated reorders, and receive electronic payments from the firm. Concurrently, the company operates a web store enabling individual retail buyers to order finished goods for personal home delivery. Which of the following accurately categorizes the supplier portal and the retail web store?

  1. The supplier portal is an e-business system operating under a Business-to-Business (B2B) model, whereas the retail web store is an e-commerce system operating under a Business-to-Consumer (B2C) model.Answer
  2. B
    The supplier portal is a Business-to-Consumer (B2C) e-commerce model, whereas the retail web store is an internal e-business process.
  3. C
    Both platforms are classified strictly as Consumer-to-Business (C2B) e-commerce models because automated digital payment systems are used.
  4. D
    Both platforms represent internal e-business operations with no e-commerce classification because inventory databases are automated.

Answer

The supplier portal is an e-business system operating under a Business-to-Business (B2B) model, whereas the retail web store is an e-commerce system operating under a Business-to-Consumer (B2C) model.
E-business is a broad concept covering internal and external business processes, supply chain management, and automated procurement between commercial firms (Business-to-Business, or B2B). E-commerce is a subset of e-business specifically referring to online buying and selling transactions, such as a company selling products directly to individual retail end users (Business-to-Consumer, or B2C).

Step-by-Step Solution

1
Analyze the functional scope of the supplier-facing platform
The platform integrates inventory tracking, procurement, and supply chain logistics between two business entities (the manufacturer and its suppliers).
System-to-system operational integration between commercial organizations falls under e-business and follows the Business-to-Business (B2B) model.
2
Analyze the functional scope of the retail web store
The web store facilitates outward retail sales transactions directly from the commercial firm to individual end consumers.
Commercial transactions involving online retail sales to end users constitute e-commerce operating under the Business-to-Consumer (B2C) model.
3
Synthesize and match the correct classification pair
Supplier portal = E-Business / B2B; Retail web store = E-Commerce / B2C.
This correctly reflects the boundary between overarching digital business operations (e-business) and direct commercial transactions (e-commerce).

Key Concept

Distinction between E-Business and E-Commerce, and classification of B2B vs B2C business models.
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Topics

E-Commerce and E-Business Models

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