Partnership Network consists of two sections:
- Suppliers
- Other key relationships
Your suppliers are the ones whom you depend on for the materials needed to manufacture your product. Without them, it will be quite impossible for you to be in business. Take our national car maker as an example - it depends on many suppliers for its supply of car components, paint, cushion seats, etc. Imagine what would happen if these suppliers were to sever their relationship with you. You get nothing, manufacture nothing and sell nothing. It is therefore, extremely vital, to maintain good relationship with your suppliers. Good relationship means creating a win-win situation for yourself as well as for your suppliers. For your assignment, identify who your key suppliers are, and explain how you maintain good relationships (for example, paying them promptly).
Other key relationships would refer to your relationships with many other parties which impact upon your business. Depending on the type of business you are running, key relationships may need to be established with: government agencies, environmental groups, consumer associations, trade unions, logistics firms, etc. These key relationships may help to facilitate the development of your business. For example, having good relationship with government agencies may land your business some sales contracts with the government. For your assignment, identify any other key relationships, and explain why you view these relationships so seriously.
Customer Interface consists of three sections:
- Target market
- Fulfillment/Support
- Pricing structure
Target market refers to the market segment in which you would concentrate most of your sales efforts. It is quite impossible to cater to the needs of the whole market. People have different needs and due to the constraints upon your own resources, you cannot possibly be satisfying everyone. Therefore, it is important for you to wisely choose a segment of the market which you can zoom into. You can then use your limited resources to try to satisfy the needs of this particular segment. Perodua for example, targets fresh graduates starting out their career who want to own an affordable car. BMW targets the up-and-coming executives, and Mercedes will be looking at those who have high purchasing power. So, who are you targeting and what is the rationale of your choice?
Fulfillment/Support refers to the ways in which you hope to make your customers feel happy with you. Happy customers are satisfied customers, and satisfied customers tend to repeat their purchases from you. Therefore, think of ways to make your customers' purchase experience a memorable one for them. Not only will satisfied customers become your long-term customers but they also function as your promotional tool. They will promote your product to their whole village and very soon the whole village will buy from you!! Word-of-mouth is a more powerful tool than all the advertisements you put on television!!
Pricing structure refers to the pricing strategy that you want to implement which will help you realise your mission statement or marketing goal. Some examples of pricing strategies are such as market penetration strategy, market skimming, differentiated pricing, cost-plus pricing, package pricing, psychological pricing, etc. Identify the pricing strategy that you want to implement and make sure that your pricing strategy is consistent with your mission statement. You cannot possibly be talking about making your product affordable to the community in your mission statement, but then you embark on a market skimming strategy!!
Okay, so that's it - all the four parts of the business model - core strategy, strategic resources, partnership network, and customer interface. Time is fast running out, deadline is not too far away. Start your assignment asap, otherwise you will have sleepless nights!!
