The B2B business model focuses on selling products to other business entities, including small startups and established corporations. The products are mainly used to support the lifeline of these businesses, and can also be categorized under raw materials since they are used as inputs in the production process.
A perfect example of a B2B business model is the automobile industry. Parts of a vehicle such as tires, batteries and other electronic components come from different sources. They are then assembled by the manufacturer to come up with a complete product.
From this example, the relationship between the companies that manufacture different parts of the car and the automaker is a B2B business model. There are global companies that run their businesses using B2B models only by specializing in selling their products to other consumers. In this article, we are going to look at 3 large companies that do business to business sales and how they have managed to dominate their respective industries.
1. General Electric (GE)
General Electric offers a wide range of products and services, including aircraft engines, oil and gas production equipment, medical equipment, power generation equipment, industrial and financial products. According to statistics from the company, more than 333, 000 people living in 180 countries use the GE products.
GE was founded in 1892 and has enjoyed an immense success up to today. It was one of the first companies to be listed on the Dow Index, a status that it has managed to retain up to today. The company has been undergoing a series of transformations, especially on its business model. The changes have helped it to acquire the status of the World’s Largest Digital Industrial company.
GE sells a broad range of its products and services to other business entities. It manufactures products that are used in eight industries; oil and gas, renewable energy, aviation, healthcare, energy management, lighting, transportation and power industries. The company also provides lending and leasing services to industries that use their products.
IBM is a technology company that runs its business on a purely B2B model. The company sells software, services, and hardware products to other companies. IBM is a well-established company and has offices in more not less than 175 countries.
IBM has five core business segments which include Global Technology Services, Global Business Services, Global Financing, Software and Systems Hardware. Some of the products under Global Business Services include system integration, global process services, and application management services.
IBM sells operating systems and middleware to other businesses. The middleware facilitates the integration of different and unrelated systems so that they can work together. Some of the IBM software and integrated solutions include data governance, information integration, database management, ERP, data analytics among others.
The company gets its revenue from selling IT hardware systems. The most common ones are the IBM Servers and IBM Storage systems. IBM also provides global financial services to businesses, including commercial financing, client financing and remarketing.
Cisco is a market leader in providing communication and networking equipment. For years, the company has been supplying products and services that facilitate the flow of data, videos, and voice across the internet and extranets. The most popular categories of products from Cisco include switching, routing, collaboration services, data center, and wireless security. Cisco also provides advanced technical services to businesses that are using its products.
Cisco products are used by both small and large business entities. Governments across the globe also buy products and services from Cisco. To enhance its relationship with businesses, Cisco sells its products directly to other businesses or through its accredited partners. Some of its channel partners include distributors, resellers, system integrators and service providers. This is a well-structured system that ensures all the issues from buyers are handled well.
Cisco has four customer segments which are;
-Service Providers: These include telecommunication carriers, cable service providers, internet service providers, video/voice services and data providers.
-Enterprises: This customer segment serves businesses that sell products or services in multiple locations.
-Commercial: This serves small and medium businesses that have less than 1000 employees.
-Public Sector: The segment comprises of various government entities.
These are three companies that have relied on the B2B business model to drive their sales and growth. They provide both manufactured products and services.