Business to Business: B2
Business to business: B2B transactions occur when one company makes an indirect commercial transaction with a partner. This usually takes place when: the companies share is small, both of them are similar, and the nature of the business in question is similar. It can also take place if both companies do not have any similar products or services but share a common market or area of expertise. There are many advantages of business to business: B2B transactions over conventional business to business: B3B and this article will discuss two of the most common.
Companies that make business to business: B2B transactions usually come from two different angles: from the seller and from the buyer. The seller is the one who offers a particular product or service in exchange for a price. In most cases the buyer is the one who then agrees to the seller’s offer by making payment for the item in question. The advantage of making business to business: B2B transactions this way is that the seller can get rid of the product or service he is offering at no cost and for no risk. This is known as ‘leverage’.
Business to business: B2B can also take place between two different types of companies, which are known as’vertical’horizontal’. Vertical companies usually make business to business: B2B transactions on a large scale and this usually includes industries such as telecommunications. Horizontal businesses, on the other hand, make a business to business: B2B transaction on a smaller scale. Business to business: B2B transactions between vertical companies can be very profitable because the companies in question share a similar target market. However, horizontal companies are less likely to make business to business: B2B transactions because the target market of the smaller companies are usually more limited than the larger ones.
Business to business: B2B transaction can also take place between two different types of countries, although most of the time it is considered a business to business: B2B transaction. A business to business: B2B transaction can occur when one country is exporting goods or services to the other country. The advantage of this type of transaction is that the seller can get access to a larger market without the risk of having to make a large payment for an item or service that is too expensive to be bought in the country of the seller is based in. However, the disadvantage is that a business to business: B2B2B transaction takes place on a much smaller scale than a business to business: B1 transaction, so the profit margin of the seller is lower.
Another business to business: B2B transaction that happens is when two different companies decide to start a joint venture or a partnership. The main advantage of this type of transaction is that there is less risk involved in making business to business: B2B transactions because one party has a much larger financial capacity and one party does not have to make the initial investment on the product.
Another disadvantage of business to business: B2 is that the amount of money one party has to invest is much higher than the money one party needs to invest. This is called an ‘equity’ part, and it is one of the reasons why many people consider making business to business: B2 transactions a risky venture because the risk of losses here are very high. On the other hand, business to business: B2 transactions can give both parties a lot of profit because the amount they need to invest is low.