BLOCK N°7: Key Activites
Like the Key Resources, the Key Activites is the most important actions the company must take to operate successfully.
Also, they are important to allow the company to:
There are three categories of Key Activites:
- Production: Design, making, delivering,
- Network/Platform: Developing and improving platforms. Exp: Improving website.
Example: iPod Key Activites:
The Key Activites related to the iPod business is:
BLOCK N°8: Key Partnerships
The Key Partnerships block is the list of the most important suppliers and providers.
We can find four types of partnerships:
- Strategic: Between non-competitors,
- Coopetition: Between competitors,
- Joint ventures: Development of new business,
The motivation behind partnerships are:
- Economy of scale,
- Risk reduction,
- Acquisition of particular resources.
Example: iPod Key Partnerships:
- Record companies.
- Hardware manufacturer.
BLOCK N°9: Cost Structure
This block groups all the important costs incurred to operate a Business Model.
We can distinguish between two kinds of Cost Structure. The first one focuses on reducing the costs wherever possible (Cost-driven). The second one is the Value-driven, where companies are less concerned with costs, instead, they focus on offering high-value products.
The characteristic of Cost Structures are as follow:
- Fixed costs,
- Variable costs,
- Economies of scale,
- Economies of scope.
Example: iPod Cost structure:
iPod Business Model
Compiling all of this data and blocks you find a unique Business Model, highly effective to compete in the market even the product is not an innovation.
Below you can find the link to download the Business Model canvas:
Originally published on Blogger