8. Key Partnerships

To create efficient, streamlined operations and reduce risks associated with any business model, an organization forms partnerships with its high-quality suppliers. Key partnerships are the network of suppliers and partners who complement each other in helping the company create its value proposition. Partnerships can be categorized as follows:

• Strategic alliance between competitors (also known as coopetition)
• Joint ventures
• Relationships between buyers and suppliers.

An entrepreneur must begin by identifying its key partners followed by making future partnership plans. This can be done through an evaluation of the partnership relationship to judge which characteristics of the relationship need improvement and what kind of future partnerships will be required.

The basic questions you must answer in this category are:

Who are your key partners/ suppliers? Which key activities do your business partners perform? Which key resources are we acquiring from partners? What are the most important motivations for your partnerships?  Who will help you?