university application

1. 1
IE business application
Pedro Coelho
H. What do you believe are the greatest challenges facing the sector or industry
you would like to specialize in at IE? What role do you hope to be able to play in
this sector or industry in the medium term?

2. 2
Agenda
B2B Business challenge
B2B E-commerce
Industry example: Industrial
distributors
Industrial distributors
challenges
Successful company cases
My role
Why Ie Business School?

3. 3
B2B business challenge
Source: According Roland Berger study “The digital future of B2B Sales”
Business
Digitalization
57% of the purchase
process has already
before a sales
representative is
contacted
60% of respondents
believe that
digitalization will in
future be critical to
business success in their
industry

4. 4
B2B E-commerce
 Business-to-business (B2B) online retailing has been witnessing strong growth due to the rapid
migration of manufacturers and wholesalers from legacy systems to open, online platform
 The B2B online retail market is expected to reach double the size of the business-to-consumer
(B2C) online market, generating revenues of 6.7 trillion USD by 2020.
 B2B online sales will account for close to 27 percent of total manufacturing trade, which is
likely to hit 25 trillion USD by 2020. Geographically, China and the United States will lead the
B2B online retailing market.
Source: According Frost & Sullivan study

5. 5
Industry example: Industrial distributors
Manufacturer Distributor Retailer Consumer
Traditional Industrial distributors
supply chain
Typical Industrial distributors
supply chain Manufacturer
Online
platform/sales
Consumer

6. 6
Industrial distributors challenges
Challenges of Digital implementation
 Requiring customer technical support
 Price fluctuates often with customer
specific pricing and volume based discounts
 Manage inventory with real time
availability
 Tax and regulatory concerns
Grainger shop online

7. 7
Successful company cases
Worlds largest retailer in the world claims 80% of China online sales and with around
40 million merchants in the platform. A chinese e-commerce platform mainly B2B
that connects Chinese manufacturers to the world. In a special promotion day called
Singles day similar to Black Friday it sold around 14,7 billion dollars through the
platform
Amazon initially launched Amazon Supply in 2012 that grew to over 2.25 million
product. Amazon Supply was later supplanted by Amazon Business.
Amazon Business launched in April 2015, with over 250 million products and a more
holistic marketplace for B2B companies. It reported gross sales through the platform
of 1 billion in just 1 year.

8. 8
My role
Consultant •Short term
Blue
chip/start up
•Medium Term
Create a
digital
business
•Medium/long
term

9. 9
Why IE Business School?
Why a
master in
management
in IE?
Why digital
business in
Industrial
Supply
sector?
 Allows specialization in Digital Businessd
 Top Business School
 Became a fluent spanish speaker
 Acquire managerial skills and competences
 Digital business is a transition that most of the business will need to embrace.
 Knowledge of digital business is transversal to several sectors
 B2B digital sales less developed than B2C and have a higher margin of
progression
 Continue the family business in industrial supply