Business to Business

What is business to business (B2B)?

B2B is one out of three models that show who the target audience of a business is. The B2B model implies that a business provides products and services to another business owner. For example, it shows the interaction between a manufacturer and a wholesaler or a wholesaler and a retailer. The other types are B2C (business to consumer) and B2G (business to government).

Understanding business to business (B2B)

In the B2B model, a company does not deal with clients directly. A supply chain clearly demonstrates the processes of communication. One company is a supplier of raw materials for another company that uses those materials to produce goods and sell them to customers. Therefore, the company-producer is engaged in the B2B model with the supplier and the B2C model with its customers. One business may be involved in several types of business communication and use different channels for that. Social media nowadays serves as a typical and most convenient communication channel for different business models.

Business to business (B2B) model examples

An example of a B2B model in the real world is the transactions between Apple and Intel or Apple and Panasonic. Apple produces parts for other technical companies for them to produce their laptops, smartphones, etc., and sell them to end users. Also, B2B relations are typical in the automotive industry, when huge car manufacturers order some parts from third parties and use them in assembling cars. The advent of such business interactions is the result of globalization and mutual business relations between different countries and people.