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Who are our Key Partners? Who are our key suppliers? 39

Which Key Resources are we acquiring from partners?

Which Key Activities do partners perform?

It can be useful to distinguish between three by a group of the world’s leading consumer electron-
motivations for creating partnerships: ics, personal computer, and media manufacturers.
The group cooperated to bring Blu-ray technology to
Optimization and economy of scale market, yet individual members compete in selling
The most basic form of partnership or buyer-supplier their own Blu-ray products.
relationship is designed to optimize the allocation of
resources and activities. It is illogical for a company to Acquisition of particular resources and activities
own all resources or perform every activity by itself. Few companies own all the resources or perform all
Optimization and economy of scale partnerships are the activities described by their business models.
usually formed to reduce costs, and often involve Rather, they extend their own capabilities by relying
outsourcing or sharing infrastructure. on other firms to furnish particular resources or
perform certain activities. Such partnerships can be
Reduction of risk and uncertainty motivated by needs to acquire knowledge, licenses, or
Partnerships can help reduce risk in a competitive access to customers. A mobile phone manufacturer,
environment characterized by uncertainty. It is not for example, may license an operating system for its
unusual for competitors to form a strategic alliance handsets rather than developing one in-house. An
in one area while competing in another. Blu-ray, for insurer may choose to rely on independent brokers to
example, is an optical disc format jointly developed sell its policies rather than develop its own sales force.

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