Seize the Opportunity! 2025: Three Key Insights to Lower the Barrier to Entry in the To B Market

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The To B market is currently experiencing strong growth, yet companies within this space face significant survival challenges. For instance, despite ongoing cost-cutting and efficiency improvements, many companies continue to operate at a loss. From a tool implementation perspective, the way forward for To B companies lies in continuous optimization.

1. Strategy: Every Decision Needs a Reason

Peter Drucker once said, ‘Efficiency is doing things right; effectiveness is doing the right things’. For businesses, effectiveness is indispensable, not efficiency." However, many companies today spend 80% of their time brainstorming in meetings, 19% searching for reports, and only 1% thinking about strategy. "A good strategy is the cornerstone of a company's success." Over 20 years ago, Apple made a strategic pivot from computers to consumer electronics, which saved the company from near collapse. These examples underscore the importance of making the right strategic decisions and the difficulty of making such choices. The right strategy should adhere to the following principles:

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1) Break Free from the Limitations of "Experience"

Spencer Johnson once said, "The only constant is change." This reminds us that the world is in a state of constant flux, and while past experiences are valuable, they may not fully apply to new environments and challenges. Rejecting empiricism requires critical thinking—scrutinizing and questioning past experiences, and flexibly adjusting strategies based on current market conditions, technological advancements, and consumer needs. Take Nokia, for example, which once dominated the mobile phone market with the slogan, "Every time you blink, four Nokia phones are sold worldwide." However, its downfall was not just due to fierce competition from Apple and Samsung but also its reluctance to adapt and innovate. Even the most successful experiences can become a burden if they hinder progress. Today, breaking free from the limitations of empiricism requires establishing a logical and rational decision-making process.

2) Look Ahead Three Years

"If you look ahead three years, you'll find many competitors. But if you look ahead seven years, you'll find very few, because few companies are willing to plan that far ahead." Amazon founder Jeff Bezos is a prime example of long-term thinking. Amazon operated at a loss for 20 years after its founding, but Bezos remained committed to investing in technology, infrastructure, and talent, focusing on the company's core business and long-term growth. Once profitability was achieved, he expanded into new business areas. In contrast, many domestic companies, especially in the To B sector, lack long-term strategic planning. They often get caught up in short-term gains or adjust their strategies based on the needs of major clients, ultimately losing their competitive edge.

To embrace long-termism, companies must consider multiple dimensions, including their own capabilities, market trends, and competitors. By gaining early insights into market dynamics and deeply analyzing their resources, companies can make strategic decisions that favor sustainable growth.

2. Innovation: Change is the Only Constant

When facing marketing challenges in the domestic market, To B companies must adapt to local scenarios rather than simply replicating foreign growth strategies. The digital era has intensified competition, pushing companies to shift from a product-centric approach to a customer-centric one. By focusing on customer needs and innovating accordingly, companies can find their true market positioning and overcome the issue of "cultural misfit."

Take, for example, a certain office software that has become indispensable for many workers. This software not only manages tasks and workflows but also has a unique feature: it manages people. This duality creates a tension between management and the managed. However, the software has carved out a unique path by adopting a C-end approach to B-end product operations. Its strategic positioning is: "We are not just an office product; we are a corporate social tool."

This positioning reflects an extreme focus on user experience. As a typical To B product, it offers users more freedom and personalization in the management process. Features like exercise check-ins and "red envelope" incentives make users feel more autonomous and motivated while being managed. These initiatives not only enhance user engagement and satisfaction but also build brand loyalty.

By blurring the lines between B-end and C-end, this software has transformed a traditionally rigid office tool into a more humanized and social platform, setting itself apart in the competitive office software market and achieving sustained growth. To create a blockbuster product, companies must confront user habits and preferences, break traditional cognitive patterns, and truly identify their product's unique value proposition.

3. Logic: A Rational Approach to New Discoveries

The To B market is vast, with numerous sub-sectors such as ERP, OA, CRM, video conferencing, and project management. It is also highly competitive, with major To C players like Tencent Cloud and Alibaba Cloud entering the fray, accelerating industry development and consolidation. In such a competitive landscape, how can To B companies establish a rational, scientific decision-making process that moves beyond empiricism and embraces innovation?

ZenTao, recognizing the lack of systematic strategic direction, the need for innovation, and the inability to make efficient decisions, has introduced the  ZenTao Enterprise Decision Analysis Solution. This solution leverages models like Porter's Five Forces and the 3C Strategic Triangle to help companies "do the right thing" from a more objective and rational perspective.

Porter's Five Forces Model

In 1979, Harvard Business School professor Michael Porter introduced the  Porter's Five Forces Model in his paper "How Competitive Forces Shape Strategy" published in the Harvard Business Review. The core idea is that the primary task of strategic management is to analyze five forces—suppliers, buyers, competitors, substitutes, and potential entrants—to select industries with high profit potential. Once an industry is chosen, companies should adopt one of three strategies: cost leadership, differentiation, or focus. 

1) Threat of New Entrants

New entrants are companies from other industries that have not yet entered the market but plan to do so. For example, Huawei and Xiaomi's foray into the automotive industry poses a threat to existing automakers. To assess this threat, companies should consider  barriers to entry (e.g., capital requirements, technological barriers, legal and regulatory hurdles),  market potential (e.g., growth rate, profitability), and  existing product availability (e.g., price-performance ratio). Companies can also prepare by expanding marketing efforts, innovating products, or optimizing prices.

2) Bargaining Power of Suppliers

Suppliers' bargaining power determines the strength of their relationship with companies. For instance, key automotive suppliers like Bosch and Continental have significant leverage over automakers. By analyzing supplier market concentration, product uniqueness, and dependency, companies can assess supplier power and its impact on market expansion.

3) Bargaining Power of Buyers

Buyers' bargaining power determines the strength of their relationship with companies. For example, individual car buyers have less bargaining power than taxi companies purchasing in bulk. By analyzing customer industry concentration, purchasing preferences, and value focus, companies can assess buyer power and adjust strategies based on switching costs.

4) Threat of Substitutes

Substitutes are products that can replace existing ones. For example, tea can substitute coffee, and electric vehicles can replace traditional cars. If substitutes are easily accepted by consumers, they can constrain pricing and profitability. Companies must analyze substitute market penetration, growth rates, and consumer attitudes to differentiate their products and mitigate this threat.

5) Competitive Rivalry

To assess competitive rivalry, companies should identify key competitors, gather information on their market share, financial status, product lines, pricing strategies, and market positioning. They should also evaluate competitors' resources (e.g., technology, brand, capital, talent) and market dynamics (e.g., price wars, product innovation, market expansion). Based on this analysis, companies can formulate strategies such as increasing R&D investment, enhancing brand image, or optimizing cost structures.

"Change is not a threat; it should be seen as an opportunity." With the  ZenTao Enterprise Decision Analysis Solution, companies can transform vague perceptions into actionable insights, enabling them to navigate the competitive landscape with clarity and confidence.

Creating a "blockbuster" product requires effort, but effort alone is not enough. A blockbuster is not a stroke of luck but the result of meticulous planning and execution. By adopting a structured approach, companies can see both the trees and the forest, positioning themselves for long-term success in the To B market.