This is the third in a series of articles on Business to Business (B2B) linkages and the theme throughout these articles is access to relevant and verified information.
How do you gain the local knowledge and contacts required to operate effectively in a new market? How do you optimise cost, quality, flexibility and other considerations in the value chain that will lead you to gain a foothold and market share in the new market?
Cost pressure and presence combine to create an interesting set of challenges, lessons and opportunities for firms.
Challenges in B2B Linkages
Without access to reliable information, challenges in securing new markets, new suppliers and new clients could be costly in both time and resources. A B2B specialist takes into consideration whether the size of the market may be too small, whether there is a lack of information on the market products or whether there is poor market accessibility.
Challenges could also emanate from mistakes in selecting the appropriate B2B partner. Informed and careful selection of partners and setting up of proper management systems would make it possible to reduce these challenges dramatically, while maximising the benefits of B2B linkages.
An essential requirement is access to reliable and actionable information to reduce the risks inherent in transacting with companies in a new market. This endeavour can be especially costly in business models involving large numbers of small transactions, for example when sourcing agricultural products from smallholder farms or marketing consumer packaged goods through kiosks or pushcart vendors.
Lessons in B2B Linkages
A tough lesson is that as lifestyles and businesses shift to become climate-friendly, being sustainable is no longer enough. Instead, we understand the importance for brands, companies and communities to work together for a regenerative planet and future.
A dedicated staff or department set up specially for securing new markets for products or services could be a costly operation. Lessons learnt by existing clients is the cost effectiveness of securing the services of a professional with years of experience in B2B linkages when looking to identify potential local or international business partners.
An intermediary such as a B2B specialist can be very effective when companies in the same industry work together, helping to build trust among corporate partners.
OPPORTUNITIES IN B2B LINKAGES
Increased Customer Loyalty
When two or more businesses come together through alliances it often results in loyal customers who appreciate the added value these collaborations bring about such as exclusive deals, special offers etc. Strong customer loyalty is usually one of the key outcomes of successful B2B linkage arrangements.
Enhanced Competitiveness
Collaborating with a partner company can help you become more competitive by giving you access to new technology, ideas, or processes that you may not have otherwise had access to. Additionally, your B2B specialist can identify a partner company which has the necessary resources to help reduce costs associated with research, development, or marketing expenses.
Improved Access to New Markets
When companies work together, they can expose each other’s products and services to new markets that they may not have been able to reach on their own. This expanded market access can result in increased sales and revenue for both businesses involved thanks to the B2B specialist who created the linkage.
Increased Efficiency
By sharing resources and collaborating on projects it is often possible for businesses involved in B2B linkages to achieve efficiencies that would not be possible if working independently. This improved efficiency typically leads to reduced costs which then allows the businesses involved to pass these cost savings onto their customers resulting in better value for money offerings.
A clear business case ensures long-term commitment by the company and has a far greater chance of being sustainable with the advice and information supplied by a B2B specialist. The investment is worth it!
Information on B2B matchmaking and market linkages to secure new markets, new suppliers or new clients available from Monique Labat Consulting (Pty) Ltd.
E: monique@moniquelabat.com or M: +27 (0) 82 924 6349
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