While many traditional brick and mortar companies have "jumped on the digital bandwagon," and have embraced the concept of E-Business, other firms have taken a more tentative approach (minimal web presence) or have simply chosen not to change the manner in which they currently conduct business. While the former approach does not in any way guarantee success, the latter may prove to be disastrous. Why? According to Forrester Research, B2B ecommerce is projected to grow from around $40 billion as of 1998 to an astonishing $1 trillion by 2003. That's $1,000,000,000,000! Even if their estimates are off by 20% - 30%, we're still looking at some serious volume.

However, according to many marketing books, while price is a major (often the most important) factor for consumers when making purchase decisions, it is less important to organizational buyers. True, purchasing managers like a good deal just like the rest of us, however, factors such as quality, delivery schedules, and supplier reputation often subordinate the importance of price. Thus, in order understand the B2B market, we must explore not only the promise of cost savings, but also the added functionality that is realized from Internet operations.

The readings associated with this topic module have been selected to provide an understanding of how businesses are using the Internet to expand their market reach. Specifically, we will explore the growing role of verticals as they reduce transaction costs while bringing buyers and sellers to the same table.