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You are a business freak and want to gain more knowledge on business models. Then, you are at the right place. You will learn what are B2B companies and how they work. Also, you will get to know some famous B2B companies that have made their presence in the marketplace in recent times. Ready to take one step further in becoming a successful entrepreneur?
1. What are B2B Companies?
B2B is an acronym for business to business, which mean, unlike B2C, that, business to the consumer B2B companies involves business-to-business transactions and services directly. They have various roles to play that consist of the following:
- They form a supply chain that works together to supply services directly to the other businesses and not to the consumers.
- They provide services to other businesses, charities, organizations, and private and public businesses and organizations.
So, when we look for what B2B companies are it gets mandatory to know the challenges that they may face. A few such challenges are:
- They need to keep innovating the products and services to sell more and more.
- They need to maintain loyalty towards particular business partners to grow and make a stable network.
- They must keep optimizing and upgrading their company websites to reach more and more businesses.
- Cash flow management and finding a way to provide leading generation services is the biggest challenge to grabbing decision-makers’ attention.
Let us move forward to the next section of our article which gives you a brief idea of a few different business models that will help you understand what are B2B companies and what they do more appropriately.
2. Business Models
Before getting further to know more about what B2B companies are, let us find out how B2B companies’ models are different from other business models. Let’s start with some examples!
2.1. Business-to-Business Model
As we discussed so far about what are B2B companies’ businesses, we know that the B2B model delivers a business-to-business service in public and private sectors to not only other businesses but also charities and organizations.
For instance, many manufacturing businesses exist that require raw materials for manufacturing. How do they get their material? The answer is simple, via other businesses that provide those raw materials to them, that is, the direct supply chain that involves business-to-business transactions of goods and services. Instead of selling the raw material directly to the consumer, the transaction is being made between two companies. This is how B2B companies work.
Let us know what B2C companies are then…
2.2. Business-to-Consumer Model
The B2C business model involves business-to-consumer transactions of goods and services. In this model, no two businesses are involved in the deal. The deal is sealed between one company business and consumers directly but via a retailer. These are mainly operated online via online retailers who sell their company products to customers online.
For instance, Amazon, Flipkart, Myntra, and other E-commerce businesses have well-established e-company websites through which they directly contact customers and sell their products and services online. Today, everyone is using mobile phones and has these e-commerce applications installed on their devices because of the discount offers and deals that are made to lure the audience.
Now let us discuss, What is D2C business model?
2.3. Direct-to-Consumer Model
The D2C business model removes the middlemen, that is, retailers, and the services are provided directly to the consumers. Mainly all big brands in the marketplace today work on this model as it gives them the advantage of not losing any money to the middlemen and getting all the profits in their own pockets.
For instance, larger businesses like Sugar, Mama earth, Loreal, Nike, and others deal directly with their target audience through their showrooms and outlets in malls and famous markets. They do not involve any retailers; their customers directly buy their products from these outlets.
Let us see about Consumer-to-Consumer model now…
2.4. Consumer-to-Consumer model
This model involves the transaction of goods and services between consumers directly, no large businesses or companies are involved in it. Usually, a small business that sells its finished products directly to the end consumer comes in with this model. Job search platform and freelancing are also an example of the C2C model.
For instance, one business creates artwork on a small basis and sells it directly to the individual consumer. Similarly, nowadays selling your used clothes to other potential customers is getting famous. In this trend, the customer is selling their purchased products to each other becoming business clients. In such a way the consumer supply chain is being maintained.
So, you see how these business models work and differ from each other. Let us come back to what are B2B companies and discuss some famous B2B companies.
3. Famous B2B Companies
After getting to know everything about business models and what are B2B companies, we shall know about some B2B businesses that have made their presence feel in the marketplace and are performing great for a long time.
- It is a technology that provides online marketing automation.
- It stores all the relevant information such as sales, marketing, and others that is then evaluated to provide the possible growth factors.
- They provide marketing content and tools such as videos, emails, blogs, and more.
- It also provides services to others on how to do publishing content marketing effectively.
- It provides a game creation ecosystem with tools and community support.
- It helps gaming companies deploy their games on play stations, Xbox, and other famous gaming platforms.
- They provide support to help you build a better gaming experience for the consumers.
- It helps develop Augmented Reality (AR) and Mixed Reality (MR) applications.
- It serves as B2B and B2C business according to its services.
- It provides services like google clouds, SEO, forms, drives, photos, and more as a storage space for other businesses and organizations.
- Google Ads service helps in the digital marketing of other businesses.
- Its software like google assistant is also a service that is being sold to other businesses.
- It helps e-commerce businesses in increasing the shopping experience of the customers.
- This platform manages the sales data, customer data and provides a solution to grow the company.
- It helps you build an attractive user interface and provides tools to design your website.
- They provide experts for account management.
- It provides a platform to connect the company with its service providers and customers in a centralized place.
- You can access real-time visibility to the operation field and individual service provider networks.
- It gives you the evaluated data to reduce your operational expenses and increase your customer lifetime value.
- It assesses the individual service provider networks and then provides the best ways to increase customer lifetime.
These were some famous B2B companies that are currently working out of the blue in the marketplace.
4. Types of B2B Relationships
We got our hands on what are B2B companies so far. Now, it’s time to discuss the relationships that are commonly shared in business-to-business transactions. These are the following 4 types of business-to-business relationships:
4.1. Manufacturer and Retailer
In this type of relationship, two phases are involved. Firstly, between the manufacturer and retailer where the products and services are being sold by the manufacturer to the retailers. Secondly, between the retailer and consumer where the retailer re-sells the products and services to the end consumer.
4.2. Manufacturer and Distributor
This type of relationship is similar to the first one, that is, manufacturer and retailer, but the difference is that firstly, the distributor sells the product to the manufacturer and then, the manufacturer re-sells them to the end consumers.
4.3. Manufacturer and Wholesaler
This type of relationship is similar to the above-mentioned ones, but firstly the manufacturer sells the products to the wholesaler and then the wholesaler re-sells them to the end consumers directly.
4.4. Service Provider and Client
This is a different kind of relationship that involves the services such as marketing, expertise, consultations, finance, accounts, and more as a product to other businesses to help them grow faster with the help of evaluated data.
So you see how B2B relationships are the ones that make the business-to-business model possible. These relationships show the importance of B2B and manufacturing business. This is the basic step of all the models before providing goods and services to the end consumers. Now, you know what are B2B companies along with the different types of B2B relationships they share.
5. Final Note
In this growing business world, a large number of opportunities are there for entrepreneurs. So, it becomes important to know more about different business models and work on their business ideas accordingly. You are now well-versed about what are B2B companies and how they work?
The B2B business model and its supply chain play a vital role in every kind of business model because, at the most basic level, the transaction between raw materials and manufacturers is always required. So, the B2B business model is usually involved on a larger scale when it comes to larger companies and brands.
Business to business model includes charities and organizations from the private and public sectors as well to fulfill the needs of the two companies. Famous B2B companies are working best in the marketplace in recent times.