Answer to Question #232583 in Management for Thilivhali

Question

Compare and contrast the different between a vertical and horizontal B2B marketplace in your response use a diagram to illustrate these marketplace, identify the services they offer and the benefits.

Answer 1

A vertical B2B marketplace is where

The seller offers products in a particular category ,sector or industry .It covers the entire sector from top to bottom by offering all products that falls in that specific industry for eg insurance industry it will offer all kinds of insurance related whether customer is looking for health , life ,motor ,home insurance etc.

They offer specialised services and may target niche customers ie something like a handcrafted furniture showroom the retailer would highlight the features of the furniture.

The benefits are a better user experience as retailers are able to showcase the products more better .supply chain is bit expensive in terms of sourcing key suppliers so not much attractive pricing

A horizontal B2B marketplace is where

The seller offers a wide range of goods and services belonging to different categories . They project themselves as convenience and comfort ie everything under one roof and selling everything to everyone.

They are a onestop shop and they get benefits in terms of scale and supplychain that allows them to offer amazing prices .

For example a mall has all kinds of offerings and stores inside it.