Business-to-Business (B2B)
Table of Contents
B2B is a situation where one business makes a commercial transaction with another. This typically occurs when:
- A business sources raw materials for its production process for output (e.g., a food manufacturer purchasing salt) – which provides the opportunity for others to produce something from it.
- A business takes advantage of its competition for operational purposes (e.g., a food manufacturer employing an accountancy firm to audit its finances).
- Businesses are constantly selling other businesses’ products (e.g., clothing stores selling shoes manufactured by Nike).
