9 – Key Partners
A look at the business model from the product manager's point of view
CANVAS 13 - Great guide on the business model, from the product manager's point of view
1 – Customer Problem
2 – Customer Segments
3 – Value Propositions
Value Proposition Formulation Map
4 – Customer Relationships
5 – Channels
6 – Revenue Streams
7 – Key Activities
8 – Key Resources
You are here ➔ 9 – Key Partners
10 – Cost Structure
11 – Eco-Social Costs
12 – Eco-Social Benefits
13 – KPI (Key Performance Indicators)
Key partners are an important part of your business; they help carry out key operations or provide necessary resources. Suppose your company does not specialize in advertising; in this case, an advertising agency or another company providing you with content or other essential resources, which you cannot create on your own, can act as a key partner.
In platform-based business models, such as taxi services, key partners are drivers and passengers. If you do not have drivers, you cannot offer services to passengers. But if you do not have passengers, drivers will not work with you. This creates a unique challenge in the form of the need to synchronize demand on both sides of the platform.
Even in simpler business models, for example, when you sell building materials to distributors and individuals, the business model can be complex. If distributors are the foundation of your business model, they are classified as channels, and it might seem like the business model is complete. However, this is not the case.
Within your business model, you must outline the value propositions for the distributor, that is, the solutions you offer to solve their problems. Perhaps your brand is more well-known, your product is of higher quality, or your offer is more financially beneficial. This is already a separate business model that describes how you find distributors, what problems they have, and how you can help them.
If you start viewing distributors as customers rather than just channels, this will allow you to work with them more effectively. You will be able to analyze their needs and create a product that is truly valuable to them. As a result, this will lead to increased distribution of your main product.
Questions to Ask Yourself
Which companies or organizations are our key partners in business?
Who makes a key contribution to our business as main suppliers?
What key resources do we receive from our partners to support our business?
What key functions or actions do our partners perform to support our business?
Reasons for Establishing Partnerships
- Optimization and savings: Partnership can help companies optimize their operations and reduce costs, leading to increased efficiency and profit.
- Risk and uncertainty reduction: Partnership can provide companies the opportunity to jointly bear risks and manage uncertainty, enhancing their ability to overcome obstacles and avoid unexpected problems.
- Acquisition of specific resources and activities: Partnership can give companies access to unique resources and capabilities that they cannot obtain on their own.
Types of Partnerships
- Strategic alliances between non-competing companies: This is cooperation between companies that do not compete with each other but work in related fields or similar markets.
- Alliances with competitors: This is a form of cooperation where competing companies work together on specific projects or initiatives.
- Alliance with key suppliers: This is a partnership between a company and its main suppliers, allowing both parties to optimize their supply chains and reduce costs.
- Joint ventures for launching your business and distributing efforts: This is a type of partnership where two or more companies create a new joint organization to achieve common business goals.
- Financial partners: This is a relationship between a company and financial institutions, such as banks or investment funds, which can provide necessary funding for business development.
- Government agencies: This is a partnership with government organizations, which can give access to governmental resources, support, or regulation.
- Cooperation and partnership materials: This is the exchange of resources, information, and other materials between partners, which helps strengthen their relationships and improve collaborative work.