Business-to-Business Markets

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Business-to-business markets have a limited number of buyers, which creates a large purchase volume (Clow & Lascu, 2012). Most manufacturers sell directly to the retail stores because it makes the products cheaper and no one in between needs to earn a profit. It then provides consumers with a lower cost which in turn gives the retailer and manufacturer more profits. This is a direct channel of distribution because it does not have to go through any intermediaries before arriving to a retailer (Clow & Lascu, 2012). Authorized retailers that do business with Microsoft are Best Buy, Staples, Fry’s Electronics, Micro Center, TigerDirect, Nebraska Furniture Mart, and Walmart. A consumer can either purchase the Microsoft Surface at these locations or directly from Microsoft itself. The different retailers provide consumers with convenience and information about the product (Clow & Lascu, 2012). This is what makes Microsoft a business-to-business company. Although, they can sell directly to consumers, they are mostly known to sell through the listed retailers. -conclusion Manufacturers’ responsibilities are to produce goods for resale. They combine materials and come up with a new product for consumers or businesses. The manufacturer must choose a reliable supplier, but they must also make sure that they have a back-up supplier in case any problems arise (Clow & Lascu, 2012). Specific licensed manufacturers of Microsoft’s hardware include the following: Acrox Technologies Co., Ltd.; Areson Technology Corporation; Behavior Tech Corporation; CAN Technology; Chicony Electronics Company; Darfon Electronics Corporation; Dexin Corporation; Dynapoint Spec-research,Inc; Ione Technology, Inc; Intech Electronics; i-rocks Technology; Key Mouse E... ... middle of paper ... ...e first time. This stage costs companies the most money because of development and promotion. In the life cycle, it tends to have negative or low profits. In the maturity stage, one will see growth slow down and profits tend to level or decline because of competition. Lastly, the decline stage shows how competition takes over and production, distribution, and promotion slow or cut off completely (Clow & Lascu, 2012). This particular product is in the growth stage because of its increasing competition, and its sales and profits continue to grow. Last January sales for the Surface more than doubled. The most sales came from the holiday season where they reached $893 million. Compared to Apple, Microsoft’s percentage increase was greater, even though Apple sold around $11.5 billion worth of iPads (Munarriz, 2014). -How Microsoft has moved through the cycle -conclusion
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