The Business Model Canvas (BMC) is a strategic planning tool that helps businesses and entrepreneurs model, design, create, and analyze their enterprises. The nine key activities of the BMC are customer segmentation, value proposition, channel, customer relationship management (CRM), revenue model, cost structure, resources, infrastructure, and key partners (Siburian, 2020). On the other hand, the key partner elements are the organizations or individuals with whom the company must collaborate in order to carry out its activities. Some common key partner elements include suppliers, distributors, retailers, and marketing partners. Key activities of the Business Model Canvas and key partners are the two elements that aid the business in achieving its objectives.
The business activities relate to and impact the overall BMC in a few key ways. The first way is through customer segmentation to generate revenue; businesses need to identify and target specific customer segments with a value proposition that appeals to them. The business activities assist in defining the target market and problems the business is trying to solve for them (Siburian, 2020). The second way is through the value proposition, which refers to defining the company’s services or products and how they will be delivered (channel). This defines how the company creates value for its customers and differentiates itself from competitors.
Moreover, CRM encompasses all the tactics and strategies a company uses to interact with, retain, and grow its customer base. One important revenue model for a company is to sell products or services to its customers. In order to do this successfully, it is essential to have an accurate understanding of what customers want and need, as well as what they are willing to pay for (Siburian, 2020). This information can be gathered through market research and feedback from customers themselves. The cost structure is another vital factor in a company’s success; it includes all the expenses related to creating and selling products or services, such as employee salaries. When employees are not well paid, they may become demotivated, thus not giving fulfilling results to aid the company in meeting its goals.
Additionally, resources and infrastructure are significant for businesses to consider when drafting their business model. For example, a company may need to invest in research and development to create a new product, lease office space, and purchase equipment to conduct operations (Siburian, 2020). When drafting the BMC, it is important for businesses to examine all of the different aspects of their business and how they will function. This includes thinking about the resources and infrastructure necessary for success.
The four key partner elements are suppliers, distributors, retailers, and marketing partners. Each of these partners can play a role in aiding the business to reach its target market and achieve its desired outcomes. For instance, suppliers can provide the raw materials or components needed to produce the product or service, whereas distributors can help to get the product or service to market (Todeschini et al., 2017). Retailers can assist in promoting and selling the product or service to consumers, while marketing partners can help promote and sell the product or service through various marketing channels. Another example is Coca-Cola’s key partners, which include its suppliers, who provide the syrup that is mixed with carbonated water to create the beverage (Linnander et al., 2017). Its distributors deliver the finished product to retailers, who then sell and display the product on store shelves. Lastly, the marketing partners create television, radio, and print media advertisements.
In conclusion, the key activities and key partners’ elements of the BMC relate to and impact the overall business model in a few key ways. Key activities are essential to the business’s success and must be carried out for the business to generate revenue. Key partners help carry out these key activities or offer support in other important ways. The relationships between these two elements: key activities and partners, are therefore critical to the business’s success. The strength of those relationships and how well they serve the needs of both parties determine the business’s success.
References
Linnander, E., Yuan, C. T., Ahmed, S., Cherlin, E., Talbert-Slagle, K., & Curry, L. A. (2017). Process evaluation of knowledge transfer across industries: Leveraging Coca-Cola’s supply chain expertise for medicine availability in Tanzania. PloS One, 12(11), e0186832.
Siburian, A. M. (2020). Implementation of business model canvas in chemical manufacturing company PT Timuraya Tunggal. Dinasti International Journal of Economics, Finance & Accounting, 1(3), 421-430.
Todeschini, B. V., Cortimiglia, M. N., Callegaro-de-Menezes, D., & Ghezzi, A. (2017). Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), 759-770.