Price competition in B2B capital products and complex solutions


On 23 February 2018 Mr. Ahmed Osama Eltagy successfully defended his DBA-thesis titled: Value Based Differentiation: Escaping Price Competition in the B2B Egyptian Market of Capital Products and Complex Solutions at MSM.

About the DBA thesis
In B2B markets, many individuals in the buying organization participate in the purchasing decision, forming what is academically known as the buying center. After identifying their business needs, the sales person of the selling organization must be able to convince buying center members that his offer is the best solution to their business problem. Things gets more complicated as the product under negotiation is a capital product or complex solution that involves a great monetary value and purchase risk. Also the presence of other suppliers with comparable quality and lower price may change the game in the price war. A successful way to be able to escape the price competition is to use value based concepts.

The main objective of the research of Mr. Eltagy was to develop a framework for building relationship value in this B2B context and highlight what are the value drivers that matter the most for each buying center member in the B2B capital products and complex solutions market. Benefits like aftersales service, the salesperson role and supplier market orientation appeared as the most important value drivers. The research results in the Egyptian market were compared to research results from other countries namely, South Africa and Germany.

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