Motivations for Creating Partnerships

Key partnerships describe the network of suppliers and partners that make the business model work.

Types of partnerships:

1. Strategic alliances between non-competitors
2. Joint ventures to develop new businesses
3. Buyer - supplier relationships
4. Competition: strategic partnership between competitors

Motivations for creating partnerships:

1. Optimization and economy of scale: most basic form of partnership or buyer - supplier relationship designed to optimize resources and activities
2. Acquisition of particular resources and activities - extend capabilities relying on other firms to furnish particular resources or perform certain activities - motivated by needs to acquire knowledge, license, or access to customers
3. Reduction of risk and uncertainty

This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).