IBX NORTHERN EUROPE Harvard Case Solution & Analysis

IBX NORTHERN EUROPE Case Solution

TITLE AND ABSTRACT:

The purpose of this case study is to analyze the e-commerce business to business purchasing service structure of the IBX organization along with the corporate management of the organization as the actions and decisions of the management of the organization are the prime factors of the performance of the business whether positive or negative. The e-commerce industry is becoming advanced and comprehensive thus, it is necessary for the management of the organization to appraise themselves in terms of their service structure and operations in order to adjust the business structures and priorities as per the changing environment and customer preferences of the organization.

ABSTRACT:

The geniuses and the driving force behind the creation of the company were two individuals who gained the idea when they were the employees of the Ericson Company. The affiliation of the co-founders and initial owners of the organization with the multinational corporation such as Ericsson that served them well enabled them to gain the insights of the potential markets of the e-commerce and it is necessary to support the value chain of organizations in today’s world.

Currently,IBX is one of the most prominent and leading organizations in terms of business to business purchasing of the corporate sector of the Europe. The customer base of the organization is a diverse collection of various organizations that represent different fields of life altogether.

The world has become a global village and so have the corporations of the societies as it is becoming a necessity for organizations to co-ordinate and communicate with each other. It is necessary that the management of the organization keeps the business aware and affiliated with the latest developments of the business.

COMPANY BACKGROUND:

The co-founders of the organization, Christer Hallqvist and Bjorn Bohme, skipped the Ericsson to materialize their own idea by finding their own organization, which assisted the modern requirements and challenges of the business community of the country initially and then to expand the business in the whole of Europe.

 The benchmark for the e-procurement system that the owners of the organization wanted to adopt was similar to Ericsson’se-Procurement system along with some innovations and advanced features, which hosted and assisted both the buyers and the sellers simultaneously without inclining towards anyone or the other. The system that the co-owners of the company adopted for the business operations of the company was termed as the Bizface.

Later in the year, the management of Bizface organization approached Ericsson and laid out a comprehensive plan for reducing the costs of the Click-To-Buy system of the company. Moreover, the management of Ericsson was impressed by the idea ofthe company as it reduced a significant cost proportion for the value chain of the company in terms of the suppliers and venders.

 The management of Ericsson agreed to the proposal that was laid out by Bizface’s co-owners and agreed to invest in the system.Since then the company has grown and expanded with leaps and bounces and has established a prominent and visible presence in the Nordic region of the European continent and this has been possible due to the feasible decisions and management skills of the management of the organization.

 The main driving force of the company comprises of two entities in terms of services and products namely; IBX and the SAP.IBX has been responsible and successful in generating the solutions and course of actions for the customers and its partner, SAP, has been responsible mainly for developing software's  as per the requirements and characteristics of the businesses of the customers of the company.

On the other hand,the name and initial attachment of the large multinational company such as Ericsson served them well and the other most critical client for the company was Volvo as it helped the management of the organization in promoting the trust with other organizations, which were doubtful that the company might be inclined towards Ericsson due to its linkage and affiliation with it.......................

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