Have you heard of B2B before? Some people who work in business may already know what the term “B2B” means. So, what does B2B mean? Business-to-business, or B2B, can mean more than one thing in the business world. Check out the explanation below to learn more about the B2B business model, how it works, and some examples of it.
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What is B2B?
The B2B business model is when a company does a business transaction with another company. This way of doing business is a little different from what we’re used to. In the B2C model, a business sells goods or services directly to buyers, or customers. In the B2B model, however, a business sells goods or services to another business. But B2B is not a rigid model because businesses always offer things that other businesses need to grow.
In general, the customers that B2B companies want to reach are different. They sell ready-made spare parts, raw materials, and other goods and services that other businesses need. So, in order for this business model to work, B2B companies need manufacturers, wholesalers, and retailers to take part. But many businesses still mix the B2B model with the B2C model. For example, the electronics company sells products directly to consumers, but it can also sell some of the parts to other companies.
Keep in mind that not all companies can combine B2B and B2C. There are some differences, such as the fact that more products are sold in B2B than in B2C and that the buying and selling process is usually longer in B2B companies than in B2C. The value of the manufactured product or brand is also distinct. B2C grows through marketing or promotions, while B2B grows through business relationships between companies.
Also read: What is a B2C Business Model: The Characteristics and Examples
How B2B Companies Work
B2B Model Business: How It Works, and The Examples (source: Freepik)
Now that we’ve talked about what B2B means, it’s important to know how the B2B model works. The time between when a product is introduced and when it goes on sale is the most important difference between B2B and B2C. Getting new customers in B2B usually takes longer. A B2B purchase or deal must also go through a contract agreement process between the two companies. This is because the value of the transaction is high and the process is long.
The B2B model also needs careful planning for every transaction since it depends on management when doing business with clients. The company will use different marketing strategies to get the attention of potential clients and make them more aware of what the company does.
After getting clients, a business-to-business (B2B) company must keep in touch with those clients. The trick is to meet with the client in a professional setting before closing the deal. These meetings need to happen to make sure that business goes smoothly.
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Lists of Indonesian B2B Companies
In Indonesia, B2B companies have sprung up to meet the needs of offices and businesses by selling a wide range of goods. One way to reach this goal is by making products easy for customers to buy through e-commerce platforms. Here are some examples of B2B and e-commerce companies in Indonesia:
1. Kawan Lama
Kawan Lama is a well-known B2B e-commerce company that helps companies with their industrial needs. Kawan Lama has also made a system that uses consultants, salespeople, and showrooms to meet all of a client’s needs. This system is called a multichannel system. The most important thing for Kawan Lama is that customers can easily purchase the products and are satisfied with them. When Kawan Lama’s official website went live, the number of clients went up by a lot.
2. Garuda Indonesia
The airline company is another example of a B2B business. Before there were e-commerce businesses in Indonesia, airlines and travel ticket agents worked together. This is Garuda Indonesia’s B2B model.
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3. PT Asaba (Aneka Sakti Bakti)
PT Asaba, a company that sells office equipment, has done well in the B2B market. PT Asaba used to only sell office equipment, but now it also does things like data management, security systems, survey systems, and so on. The company has done seven interesting things to attract the B2B market: branded the people, branded the architecture, branded the audience, branded the positioning, branded the personality, and branded the consistency.
4. Unilever
Unilever is an Indonesian company that makes products for the home and body as well as food and ice cream. Electronic Data Interchange Indonesia has many clients, and Unilever is one of them. This B2B business deal is done online through the internet, an extranet, an intranet, or a local network.
Also read: 5 Main Role of Venture Capital on Startup Business
Tips for Developing a B2B Business
B2B Model Business: How It Works, and The Examples (source: Freepik)
Here are some ideas for making a B2B business model:
1. Make a target market plan
The B2B business model is different from other business models because it is made for businesses to do business with each other. But if we look at B2B, where the target market is smaller, we can see that it is also easier to find. But B2B companies still need to carefully plan how to reach their target market and do other things for their clients.
2. Get in touch with business partners and keep in touch with them
It is important for B2B companies to stay in touch with clients and business partners and build good relationships with them. Since this is a long-term investment for business growth, it’s important to keep in touch with clients on a regular basis.
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3. Build the network and make it bigger
Building and growing the network is the best way to make the company more well-known among customers and the public at large. Maintain a stable relationship between the business and its clients to keep the business going in the long run.
Now you know what the B2B business model is, how it works, and what some examples are. Best of luck, and I hope it helps!
