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,
  • Problem-solving,
  • Network/Platform: Developing and improving platforms. Exp: Improving website.

Example: iPod Key Activites:

The Key Activites related to the iPod business is:

Hardware design

Marketing

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:

  1. Strategic: Between non-competitors,
  2. Coopetition: Between competitors,
  3. Joint ventures: Development of new business,
  4. Buyer-Supplier.

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:

  • People,
  • Manufacturing,
  • Marketing&Sales

Finally

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:

Business Model Canavas

Originally published on Blogger

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