The COVID-19 pandemic is nothing short of a tectonic shift in the business world, with its reverberations rippling through every industry. Businesses across the world are beginning to revamp their existing models to accept the boutade in the environment, making way for the ‘new normal’, from what was viewed as ‘abnormal’ a few months ago.
In these confusing times, businesses are giving fierce competition the back-seat and making way for cooperation to steer to the other side of this outbreak. The B2B2C model has always been about organisations forming a collaboration and supporting each other to harness growth opportunities in full flight. With its fair share of challenges, B2B2C opens doors to qualified leads, strategic customer growth, reduces overheads and often helps organizations reap benefits from big brand credibility. As firms flounder, this collaborative model is set to become the next- big wave in entrepreneurship.
Immediate Needs: Tackling Lag Time
The shift from a physical environment to the work-from home setup has not been a cakewalk for a large number of firms. Businesses that did not follow technology-equipped models or did not invest heavily in IT infrastructure will require massive assistance in meeting the demands of end clients. The B2B2C approach will fulfil the internal immediate needs of such organisations without having them build their own capabilities to scale.
In the promotional sector, advertisements have moved from large billboards to advertisements on the tap of your fingertips. Many firms have outsourced advertising to digital marketing firms and content creators to build a presence on digital platforms and social media. Convergence within the communications industry has proved to be one of the prominent strategies to drive growth and improve financial performance in the era of digitalisation. One can only expect such a collusive approach to increase in the post-COVID-19 world.
A Collaborative Business Environment
The pandemic is nothing short of a black swan event in the business sector that will undergo restructuring even after normalcy is restored in working conditions. The consequences include a major constraint in resources available to firms. Pre-COVID-19 businesses invested in resources and talent that they lacked from ground-up. Companies focused on acquiring these internally to increase their individual competencies.
However, the transformation from a competitive approach towards collaborative solutions is expected in this changing environment. Businesses lack adequate skills and resources to curb the adversities caused by this sudden outbreak overnight, hence a symbiotic approach is anticipated to be the way ahead for most organisations struggling for survival.
Apart from the post COVID effect, a growing trend of switching to the evolved business model has also been observed interlinked with the fact that customer acquisition and experience plays a crucial role in the business world. Startups particularly face challenges on this end, added with the cut-throat competition by big players. Such collaborative models help startups become more scalable and ensure sustainability. Many sectors like agritech, insurance, healthcare, education have already started investing or partnering with startups using this approach. In India, where diversity thrives in every corner of the country, the movement towards B2B2C models has expanded horizons towards prosperity.
Trust Barrier and Identity
A major challenge for firms following the B2B2C model was breaking the trust barrier and maintaining brand identity. The reputation and brand perception of a company is undoubtedly of high importance. Firms were sceptical towards working with a partner because of reservations regarding the consistency of quality and standard that they uphold. As B2B2C models commonly follow one business positioning their product or service as an add-on to another’s service, data breach and security issues have been a central focus.
Today, a large number of businesses lack the skills and expertise to accommodate a purely digital work environment. Not every business has options apart from choosing between working in a B2B2C collaboration or not being able to continue operations at all. Businesses are hence stepping across the trust barrier and opening up to solutions that offer their clients’ standard service and customer experience through reliable partnerships. Earlier, B2B2C partnerships existed to provide a horizontal solution to business problems of one another. In the current scenario, firms across industries and every scale have been gravely affected by common adversity.
While businesses struggle to stay afloat and governments around the world are putting together trillions of dollars to bail out sinking organisations. The global economy’s all but ground to a standstill. In these dire times, B2B2C is a possible lifeboat that offers firms a unique opportunity: collaborate with others, grow together, align resources and competencies, and build strong partnerships capable of withstanding such uncertain events.