Bypassing intermediaries
Today there is so much data available on consumers: information about their preferences can be accessed and analysed to reveal emerging trends.
Sales are taking place more and more online, while physical store sales are decreasing. That means traditional B2B intermediaries can no longer leverage their market information and customer data.
Consumers are doing the same. Knowledge and opinions are shared rapidly, which weakens brand messaging and advertising campaigns. There is mounting pressure from:
- online influencers who influence their followers
- new actors: large e-commerce players opening brick-and-mortar stores, squeezing the middleman
- large groups acquiring smaller brands
B2B companies must undergo transformation. There are two main core considerations: the first is described below, the other will appear in the next article.
Standing up
Companies can boost their brand. One viable option could be to become a content provider or solution provider, according to an article on the management-issues.com website, originally published by the INSEAD business school.
For example, in the IT sector, Intel created its new strategy in 2015. Intel used to be only a microchip processor maker. Then in 2015, it leveraged its internal analytics unit and started supporting the B2B sales force. This approach, focusing on content, somewhat blurs the distinction between B2B and B2C. For Intel, the new business opportunities are particularly in the field of artificial intelligence and drones. There are, for example, drone-led fireworks, drones monitoring production and crops for wine producers, etc.
Vertical value creation has enabled Intel to regain its market share and sustain its position as an influential player.
-jk-