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Why B2B Companies need to look at B2C Model?
Companies which are in Business to Business segment and have been in comfortable position being the leader supplying to other business which have business model of reaching to customers.
B2B in manufacturing industry has been the most sought after model for e.g a plastic manufacturing company is happy just manufacturing bottles and giving to another business which sells these bottles in there brand name to customers.
So the company X is happy making bottles to companies A,B & C, the reason why company X is happy is that it does not need to have spends on advertising or branding, as the companies to which they supply showcase the brand of there own.
But the major draw back of this model being that though consumer are using your bottles but they don’t know that it is company X which is making instead they remember Company A,B&C which is branding and spending on advertising.
Though company X has latest technology and sales are on high as company A,B & C avoid on manufacturing cost but the companies A,B & C instead of investing in manufacturing unit invest on branding and positioning.
Company X gets revenues they grow faster with little or zero spends in market but at one particular point they feel that though they are leaders but no one knows them, so the identity crisis comes into picture.
At this point is where company X starts to look at the other model of B2C or Business to consumer is required, but the problems are too many which gives company X do I really need to get into B2C model.
Company X feels the heat when company A,B & C starts to pressurize for low cost and orders come down as company A,B & C has power pull and Company X is vendor to them, its at this point that company X want to change and enter B2C segment as it has infrastructure to manufacture
Company X should also understand that its their own mistake and the decision to be backstage you need to pay price.
So companies in B2B segment should always look at diversification else it will be only the backend with no name in todays consumer segment