Skip to main content

Channels, key resources and key partners

Short answer

Business channels are customer touchpoints (direct or indirect) through awareness, evaluation, purchase, delivery, and after-sales. Key resources are critical assets—physical, intellectual, human, and financial. Key partners are outside parties that supply missing activities or resources, optimizing cost and reducing risk.

Write short notes on (a) business channels, (b) key resources and (c) key partners in a business model.

(a) Business channels

Channels are how a company communicates with customers and delivers its value proposition. They pass through five phases: awareness, evaluation, purchase, delivery and after-sales.

  • Direct channels: own shop, website, sales team (higher margin and control, higher cost).
  • Indirect channels: wholesalers, retailers, distributors, marketplaces (wider reach, lower margin).
  • Digital channels (social media, search ads, app) are cheap for startups to begin with.

(b) Key resources

The most important assets needed to make the model work:

TypeExample
PhysicalFactory, machines, vehicles
IntellectualBrand, patents, software, data
HumanSkilled engineers, sales staff
FinancialCash, credit lines, investor funds

(c) Key partners

Outside parties who make the model work: suppliers, manufacturers, logistics firms, payment providers, joint-venture partners and technology providers. Reasons for partnership: optimise cost, reduce risk and acquire resources or activities the startup lacks (outsourcing, strategic alliances, buyer-supplier relationships).

Together with the activities, these form the "infrastructure" side of the Business Model Canvas.

Answer: Channels reach and serve customers, key resources are the critical assets, and key partners supply what the startup cannot do cheaply itself.

✓ Answer checked by Claude Opus 5.5 (high effort)

Related questions

All Entrepreneurship Development chapter 4 questions →