KEY PARTNERS

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Key partners are those persons or entities that collaborate with the company to carry out its activities. business model (+). They can be individuals or companies that provide resources, knowledge or strategic relationships to the company. Key partners can be of different types, such as suppliers, manufacturers, distributors, collaboration partners, among others.

In the canvas, key partners are identified in the "Key Partners" section and are critical to the success of the business model. Choosing the right key partners can make the difference between the success or failure of a business, as they can bring complementary resources and skills that the business does not possess.

It is important to identify key partners early on and establish a strong relationship with them, as they can influence the company's strategy and be a critical factor in gaining competitive advantage.

In this section of your CANVAS, you should identify the key suppliers, partners, or associates with whom you will work to make the business work. The keys are the ones that allow your business model to work.

We identify key partners when we have already validated the right-hand side of the CANVAS. A key partner can bring us value, which can help us to differentiate ourselves, and can even be the origin of our competitive advantage (+). The key partners segment of the CANVAS contains the list of people, companies, organisations and institutions of a public or private nature that are directly related to the activities of your business.

HOW CAN WE IDENTIFY OUR KEY PARTNERS?

We are looking for key partners to optimise our business models, reduce risks or acquire necessary resources and capabilities. 

To identify key partners in a new venture, an entrepreneur should consider the following steps:

• Analyse the business model: The entrepreneur must understand his or her business model and be clear about which partners are needed to execute it.
• Identify critical areas: It is important to identify the critical areas of the business that require support from key partners to ensure the success of the business.
• Identify potential partners: Once the critical areas have been identified, the entrepreneur should look for potential partners who can provide the necessary support for these areas.
• Assess potential partners: It is important to evaluate potential partners in terms of their experience, financial capacity, market reputation, and other relevant factors.
• Select key partners: Finally, the entrepreneur must select key partners who are best suited to his business model and can provide the necessary support in critical areas.

In short, key partners are those who provide resources, knowledge, expertise, experience, or any other type of support necessary for the success of the company's business model. Identifying and selecting the right key partners is critical to the success of any business, especially for start-ups.

EXAMPLES OF BENEFITS WE CAN ACHIEVE

• Optimise economies of scale.
• Acquire new know-how.
• Access to a market.
• Reduce risks or uncertainties.
• Acquire an asset or resource.

SOME EXAMPLES OF COMPETITIVE ADVANTAGES THAT CAN BE ACHIEVED WITH KEY PARTNERS ARE:

• Access to new markets: Key partners may have specific experience and expertise in a foreign market that can be of great help for the internationalisation of the company.
• Cost reduction: By having a good relationship with suppliers or manufacturers, better prices can be obtained when purchasing materials or services, which can reduce production costs and increase profitability.
• Access to advanced technology: Key partners may have access to advanced technologies that may be useful to the company and would otherwise not be available. This can help improve product or service quality and increase production efficiency.
• Development of new products or services: Collaboration with key partners can help develop new products or services that would not otherwise be possible. This can lead to unique competitive advantages and improve the company's position in the market.
• Improving brand image: Partnering with reputable key partners can enhance the company's brand image and increase customer confidence. This can help attract new customers and increase the loyalty of existing ones.

It is important to keep in mind that not all key partners are the same and that each company should identify which key partners best suit its specific needs and business objectives.

TYPES OF PARTNERSHIPS

Once we have located a key partner, we must analyse the relevance that it may have in our business model and what type of alliance we are going to establish with them.

TYPES OF RELATIONSHIPS WE CAN ESTABLISH WITH KEY PARTNERS:

In a company's Canvas model, key partners are those strategic allies that contribute significantly to the creation and delivery of the value proposition, and can have a major influence on the success or failure of the company.

THE RELATIONSHIPS THAT ARE ESTABLISHED WITH KEY PARTNERS MAY VARY ACCORDING TO THE NEEDS OF THE COMPANY, SOME EXAMPLES ARE:

• Strategic alliances: long-term partnerships are established with other companies with the aim of sharing resources, knowledge and skills to achieve common goals.
• Suppliers: relationships are established with suppliers of key raw materials or services to the company, thus ensuring the quality of the products or services offered.
• Co-creation: collaborative relationships are established with customers and other key partners to co-create products and services that meet market needs.
• Joint ventures: relationships are established with other companies to develop a specific and shared project, allowing both companies to access new markets or develop new lines of business.
• Procurement: relationships are established with companies that complement the company's value proposition in order to acquire them and thus increase its reach and capacity.

It is important to bear in mind that the type of relationship established with key partners may vary over time and will depend on the objectives of the company at the time. It is also important to assess the risks associated with these relationships and establish clear agreements to avoid potential conflicts in the future.

STRATEGIC ALLIANCES BETWEEN NON-COMPETING COMPANIES:

This is when an alliance is created between two non-competing companies with the objective of offering a complementary product or service.

ALLIANCES WITH COMPETITORS. COOPERATIVE COMPETITION:

This will be the case where companies come together to do something for the benefit of the sector they are targeting.

PARTNERSHIPS WITH KEY SUPPLIERS:

To secure access to raw materials or products or knowledge... or joint development of something innovative.

• For example: partnership with the university to do research, universities get our money to invest in research, and your company gets the information and knowledge derived from academic research that they need.

There are suppliers that can be easily replaced, usually those who produce the raw materials.

But other, highly specialised resources and services that your business needs may come from key suppliers. We need to know who they are to strengthen the relationship and reduce this weakness. 

• For example: Among the main suppliers of a jewellery shop are the large producers of precious stones, which are difficult to find and replace.

JOINT VENTURES TO START UP YOUR BUSINESS AND SHARE EFFORTS:

• Example (University): the partnership, in the case of universities, is a process of mutual collaboration, where both key CANVAS partners have a benefit, there is a reciprocity that motivates this partnership.

Imagine that the university needs a certain very expensive apparatus to analyse certain materials and carry out its research. It will have to find the right company that not only has sufficient funds to buy the apparatus and do the maintenance, but also has an interest in this field of research.

• Example (Jewellery): in the case of stone supply, this is not the case, the relationship is purely commercial. Creating an exclusive partnership with a minor stone supplier, guaranteeing the purchase of their entire production, with special prices for the jewellery, and also, determining quality standards that correspond exactly to the jewellery's needs, can be a beneficial idea for both key CANVAS partners. 
• Is it possible to find a way to strengthen this partnership?
• Perhaps if the jewellery company created a line of jewellery named after one of the mines from which the stones are extracted, creating a common brand between the two companies?

"In the future, companies will no longer compete with each other, but with networks and strategic alliances" - Phillip Kotler

ESTABLISHING ALLIANCES WITH A KEY PARTNER CAN GREATLY BENEFIT OUR BUSINESS MODEL, BUT SPECIAL CARE MUST BE TAKEN IN THE FOLLOWING CASES TO REDUCE RISKS:

RISKS OF KEY PARTNERS:

Key partners can also present risks for a company, like any other business or business relationship.

SOME POTENTIAL RISKS FOR KEY PARTNERS INCLUDE

1. Dependency: If a company is too dependent on a key partner, it may find itself in a vulnerable situation if the partner withdraws or decides to terminate the business relationship.
2. Confidentiality: if a key partner has access to confidential or strategic information, there is a risk that such information may be disclosed or used inappropriately.
3. Conflicts of interest: if a key partner has its own commercial or strategic interests that do not coincide with those of the company, this can lead to conflicts and tensions.
4. Lack of commitment: If a key partner is not committed to the business relationship or does not honour its commitments, this may negatively affect the company's ability to meet its own obligations and objectives.

Therefore, it is important for entrepreneurs to carefully assess potential key partners and establish clear and strong relationships with them, in order to minimise these risks and maximise the competitive advantages they can offer.

• If the company or institution with which we partner is too large, it may hold us back in strategic decision-making.
• The public administration is a partner that forces you to carry out many activities that may not add value to your clients and that consume time, resources, delays in execution...
• A start-up company is a partner that is very likely to let us down. Beware of partners who may lose direct contact with customers, or who become our main customer entry point with the risk that this entails.
• Sometimes it is difficult to end the relationship with the key partner.

Therefore, special care must be taken when choosing key partners, as they do not always bring advantages. A good partner can help and support you in many activities with the aim of growing your business, always understanding that both key partners and you must help each other in order for there to be benefits for both parties.

SEARCH FOR KEY PARTNERS IN EACH COUNTRY:

Identification of potential partners. This is a key issue when the company has started to address a market. The company has identified a market in which it believes it has a good chance. It has studied the general characteristics of the market and of its product in particular.

You may have been able to obtain information on these points, with not too much difficulty, thanks to the wealth of information that is now available on the internet. But how to take the next step, leading to the identification of concrete potential partners? 

We use the term "partners" in its broadest meaning. In most cases the "partner" will be an importer, a buyer.

But, depending again on the product, an interesting "partner" to locate may be, for example, an agent, i.e. someone with whom the company will enter into an agreement, to sell its products on the market to end buyers, charging a commission (the agreement with the agent may also include the payment of fixed figures, as well as expenses, plus a variable commission which will normally be a percentage of the sales the agent obtains). 

Identifying relevant partners, i.e. partners who actually import or distribute products in the sector of interest to the company, who are important in terms of their level of activity, is one of the most important tasks for a company wishing to enter an international market.

• Choose between agent or distributor (see+).

• How to find a partner abroad (see+).

How can you identify key partners in internationalisation?

TO IDENTIFY KEY PARTNERS IN INTERNATIONALISATION, AN ENTREPRENEUR SHOULD CONSIDER THE FOLLOWING STEPS:

• Define your company's internationalisation strategy: Before looking for key partners, it is important for the entrepreneur to be clear about his internationalisation strategy: In which countries does he want to expand? What products or services will he offer in those countries? What is his budget for this process?
• Research the target market: Once the internationalisation strategy has been defined, the entrepreneur must research the target market in each country. It is important to know the laws, regulations, standards and business practices in each country, as well as the needs and preferences of customers in the target market.
• Identify potential key partners: Once there is a clear idea of the target market, the entrepreneur must identify potential key partners in each country. These partners can be local companies with experience in the market, distributors, service providers, among others.
• Assess potential key partners: After identifying potential key partners, it is important to evaluate them carefully. The entrepreneur should investigate their reputation, experience, resources and ability to help his company achieve its internationalisation goals.
• Establish relationships with key partners: Once potential key partners have been evaluated and the best ones have been selected, it is important to establish solid relationships with them. This may include collaboration agreements, distribution or supply contracts, strategic alliances, among others.
• Managing and maintaining relationships: Finally, it is important to manage and maintain relationships with key partners over time. This includes communicating regularly with them, resolving problems that may arise, setting objectives and measuring the performance of the relationship.

In a nutshell, To identify key partners in internationalisation, an entrepreneur must define his or her strategy, research the target market, identify potential partners, evaluate them, establish relationships and manage them over time.