Key Partners

Key Partners

Brief

-Companies create alliances to optimize their business models, reduce risk, or acquire resources.

 

-strategic alliances between non-competitors, coopetition: strategic partnerships between competitors, joint ventures to develop new businesses, and buyer-supplier relationships to assure reliable supplies.

 

Needs

·Optimization and economy of scale

The most basic form of partnership or buyer-supplier relationship is designed to optimize the allocation of resources and activities. Optimization and economy of scale partnerships are usually formed to reduce costs, and often involve outsourcing or sharing infrastructure.

 

·Reduction of risk and uncertainty

can help reduce risk in a competitive environment characterized by uncertainty.

 It is not unusual for competitors to form a strategic alliance in area while competing in another.

 

·Acquisition of particular resources and activities

Few companies own all the resources or perform all the activities described by their business models. Rather, they extend their own capabilities by relying on other firms to furnish particular resources or perform certain activities.

Such partnerships can be motivated by needs to acquire knowledge, licenses, or access to customers.

 

Resources

How do I use the Key Partnership building block of the Business Model Canvas?

https://strategyzer.uservoice.com/knowledgebase/articles/1194355-how-do-i-use-the-key-partnerships-building-block-o

How do I use the Key Partnerships building block of the Business Model Canvas? – Have a question? Find the answer here.