Question

Explain the importance of B2B relationships and how to make them effective.

Mention the entry modes for International Markets and explain at least 2 of them (include advantages and disadvantages).

Answer 1

The B2B relationship means business to business relationship

The importance of B2B relationship Are

Taking the advantage of long run benefits as there are many small shopkeepers who are traded in a small quanting each one has a few number of customers so they collect and order in a bulk and distributed which helps in cost reduction benefits of bulk purchase

It helps to cutomer drive Retention It means here due to B2B relationship each business has its customer . No business man is try to induce it against another one

B2B relationship also has a importance to contact with those cutomers who never make them contact they can meet with those with the help of these other businessmen

B2B Relationship are make effective with the help of better communication WIth the help of better communication they can easily and effectively contact each other also the second one is better business environment If there is a good business environment then all the business take interest in each other if there is not then it make their relationships ineffective And the third one is good personal contact and etc..

The entry modes for International Markets are as follows:-

1. Exporting

2. Licensing

3. Franchising

4. Joint Venture

5. Wholly owned subsidiaries

Exports:- Export means whwn one country can sell their products in the another country it is termed as Exporting . It helps to increase the profitability, Exporting is a very good mode to make entry in the international market

Advantage:- Receiving Foreign Currency , High Profitabilty , various govt regulation advantages

Disadvantages :- More paper work , Large capital needed etc

Joint Venture:- when two or more parties are come together to do a work of similiar project for a definite time period for earning benefits this is referred as joint venture

Advantage:- No Problem arise of capital as there or two or more person doing business , losses are also distributed between the two or more

Disadvantage :- Relationship problems , Problems is distribution of capital, Problems arises in management because of diffrent thinking