If you are reading this post, then you have probably heard of the B2B market, also known as Business to Business, right?
Among other several nomenclatures used in the market, the acronym B2B is one of the most gaining space.
This is because it characterizes a company with differentiated strategies and also a new type of business totally different from the traditional ones.
In addition, other terms that also resemble B2B are B2C, C2C and even B2G.
But, in this content we will talk specifically about what is the B2B market and what are its main characteristics.
Do you want to know more about all this? So be sure to follow us on this post! Come on?
First of all, what is B2B?
B2B is an abbreviation for the English words “Business to Business” and is translated as “business for business”. Basically, it is a company that sells to other companies.
That is, it is a business model where a company provides its products or services to other companies, and not to individuals and consumers, which is more common.
A good example of B2B is a company that provides chiller maintenance for other companies.
Those companies that need the service probably sell other products to other companies, until they reach the final consumer, that is, the individual.
In addition, there are also companies that are part of the B2B market, but that also sell to physical consumers.
What are the main characteristics of B2B?
Now that you already know what the B2B market model is, let's see now which features define it, so keep following us! Come on?
Large sales volume
The B2B market is very broad and also highly competitive, as it covers the supply of all raw materials and resources to other companies.
That is, each customer (company) buys a large quantity of products, as they also need to manufacture their final products and, therefore, the amount of sales in this market also increases.
This also happens in the sale of services: companies that provide lift maintenance with quality and speed, for example, they can undoubtedly stand out in this market.
High degree of technical requirements
In the B2B market, customers are also business owners and want their products to be of the highest quality. For this reason, they have a high degree of demand on the materials purchased.
Constant risk management
Another characteristic of the B2B market is that companies must always have a efficient risk management.
After all, all purchasing decisions involve a lot of money and any errors calculated by the companies that sell can cause serious losses for managers on both sides.
All raw materials and resources must have their specifications consistent and without errors, so that the company can stand out and gain space in the market.
In addition, there are also financial risks, as in a B2B market company, revenues and expenses are more variable, apart from political and environmental risks.
Finally, although the B2B market has its own characteristics and, because of this, it is more complex than traditional companies, it is still advantageous and any entrepreneur with a good planning and management can stand out in this market! So, did you like the post? Tell us!
This article was written by Rafaela Ricardo, Content Creator at Industrial Solutions.