Epsilon Electronics Inc. is a technological company and they deal with many other organizations. These relationships can be classified as B2B. There are 3 types to consider; there are the producers, resellers and governments.
Producers are organizations that purchase goods or services to use in manufacturing other goods and services in order to sell. Most, if not all businesses are technically producers to some degree. For example, car manufacturers need to buy steel and material to build the chassis and seats for the cars, Wendy’s need to purchase beef patties and buns to make and supply burgers, and Epsilon Electronics Inc. needs to purchase circuits and motherboards or computers to build hardware or software. Every business needs some form of good or service to operate and provide a commodity.
Epsilon Electronics Inc. create products and sell their products to Resellers. Resellers are firms who sell goods or services, which were produced by other companies. They include wholesalers and retailers to name a few. A perfect example of resellers is Wal-Mart, Target and Costco. They purchase finished products such as televisions, clothing, sporting goods, and produce and sell it for a profit. It’s a beneficial relationship for companies such as Epsilon Electronics Inc. since they do not have their own stores to sell their goods and services. Having deals with retailers helps them to keep cost low and operate efficiently by focusing on research and development. However, they also sell items such as T.V screens of all sizes to companies such as Lexus or Acura’s for the construction of their navigational systems. They provide parts to help with he manufacturing process of other companies such as themselves. Since they have a comparative advantage over their screens, they tend to sell quite a bit of parts for companies who are in dire need of screens for whatever the purpose.
Epsilon Electronics Inc. also sell goods and services to Governments. Governments rely on goods and services such as paper, ink, Internet connection, custom made super computers to help them in their service. They too purchase screens for whatever the reason from Epsilon Electronics Inc. Governments are the biggest purchaser of goods and services, they purchase road work services, buildings, teachers, doctors, police officers, weapons, and space programs. Governments also set quotas to purchase from local companies, minority and female oriented businesses, and firms owned by the disabled or veterans. Epsilon Electronics Inc. does well when it comes to selling to governments and many other firms.