Question

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In view of the success of the B2B enterprise, to analyze the characteristics of the B2B system in the system planning and pattern management, and summarizes the successful elements of the model.

Answer 1

Ans: Business to Business (B2B) is a form of transaction between the businesses rather than between abusiness and individual customers.B2B often takes the form of one company selling supplies or components or services to another businesses or consumers. These transactions are common in supply chain as company purchasing products and components from other companies or enterprises; the company can use these components in the manufacturing process and then these finished products are sold to the consumers through B2C transition.

Characteristics of B2B Model

1. The market structure of the model is that it contains larger buyers ; larger in sense that the buyers are big companies or the enterprises who are involved in the manufacturing or servicing process but in total thare are few buyers than other business model.
2. The demand for the products in this model is derive demand; demand is derived from the demand of the consumer goods on the B2C market. For example: if the demand for dell laptops go down then the demand for the intel core microprocessers will also go down because the demand for the processors is derived demand for final consumer good that is laptop.
3. The demand for products in this model is more fluctuating due to the bluewhip effect due to the changes in the consumer behaviour, the demand for the products by the companies is more likely with respect to the changes in the market or the economy.
4. There must be integration between the markets of B2B model so that the decisions are more uniform and collaboration with the consumers, business professionals and partners is more compatible.
5. The more focus is on the supply side procurement in this model so that good quality products are delivered to the consumers.

Successful Elements in this model

Innovation: It is one of the most essential element that needs tobe considered in B2B enterprises. While adopting this it is very essential to understand how an enterprise can innovate its products or its marketing strategy. There must be a USP that is very vital for the success of the enterprise or the model.

Building Personal Relationships

It is quite important to build long term relationship with the partners for the success and maintaing integrity is quite important for the success of the organization so that the consumers remain satisfied and by providing incentives to the distributors who can try to sell the product is necessary. Thus brand building is quite important.

Marketing and sales funnel

In order to widen its reach and expand the business opportunities it is important to analyze and the incorporate the best marketing strategy, the company can do so by focusing more on its products.

Fewer Segmentation

The best strategy is to classify the target audience by size, geography and to provide all the assistance that is required for the clients or the partners. The long term depends a lot on them.