CHALLENGES FACED BY B2B ORGANIZATIONS
B2B organizations face various challenges in the business environment. These challenges can hinder them from improving their sales and achieving performance objectives in the marketplace. The chapter identifies some of the key challenges that these organizations encounter as they attempt to pursue profitability goals.
Customer Diversity and Value Creation
Customer diversity in the B2B market creates value creation challenges. According to Rissanen and Münch (2015), B2B organizations sell similar products to companies that operate in different sectors and this poses significant challenges in terms of value creation. Rissanen and Münch (2015) argue that the needs and expectations of clients in one industry may differ from those of clients in another industry even if the products supplied are the same. B2B organizations face value creation challenges because they have to identify the needs and expectations of clients from different industries to determine how to create value. Rissanen and Münch (2015) suggest that B2B organizations should shorten the feedback cycle to ensure that the changing needs and preferences of customers across industries are identified and met. The claim implies that even in the B2B market, organizations should obtain information concerning the needs of their clients to create value for these professional clients. However, there is a need to understand that value creation in the B2B market is achieved differently compared to the B2C market. Fotiadis and Vassiliadis (2017) agree that B2B organizations face challenges in the marketplace as a result of having customers from different industries that require similar products and services but with varied expectations and requirements. Even if a company specializes in a single product, the expectations of professional clients from different sectors are likely to be different. According to Fotiadis and Vassiliadis (2017), B2B organizations can solve this challenge by investing in modern customer relationship management (CRM) metrics. Modern CRM metrics improve decision-making and ensure that B2B organizations create value for clients and enhance satisfaction. The argument indicates that B2B firms must invest in information technology to improve CRM and value creation. The strategy will improve sales through enhanced corporate reputation in the business environment. B2B firms must understand how to manage relationships with professional clients because the needs and expectations of these clients differ from those of consumers. Professional clients serve other customers and thus their needs must be differentiated from the final buyer. Grafmüller and Habicht