JWI 575 Strayer University Wk 8 The Benefits of Partnerships Discussion Responses

• What have you learned from the Tio case to help you develop strong partnerships in the future?

Tio has some interesting partnerships. General Mills was able to invest money in Tio, and the restaurant Beefsteak was able to carry Tio products in their stores (JWI575, 1). As a general rule, a larger organization like General Mills has trouble creating innovative new products, so they have venture arms where companies like Tio can get funding and possibly acquired down the road (Kawasaki, 2). Beefsteak is an interesting vegan fast casual restaurant that has a similar target market to Tio and can help drive sales and introduce new people to Tio.

I have learned to look for partnerships that can provide a win for both sides, and there are many different reasons to go into a partnership (Kawasaki, 2).

• Who are your Key Partners? Why?

There are several key partners for Threads LLC. One is our third-party logistics partner. They will receive our product from the supplier and ship to the end user when a sale is made. Threads won’t have to host it’s own fulfillment. The other key partners are the online shopping portals and websites, such as Amazon, Wal-Mart, and Shopify. They take a cut of the sales, but everyone knows these companies and uses their listing channels to find products. Possible expansion down the road involves selling Threads’ products in physical stores similar to what Tio did.

• Who are your Key Suppliers? Why?

My key suppliers are manufacturers in Asia. They will be able to produce designs for a low price and ship them to the US. This is a win for the supplier because they will receive bulk orders. There is a risk in buying bulk and having nobody buy it but there are ways to test the market to reduce the risk. One way is to create a website that drives traffic to click through the website to see who would be interested, another way would be to get some sample items and see what price points they would see on eBay (Ferriss, 3). Amazon, Google, and other shopping sites also have data analytics that can be analyzed to see what is popular with consumers. None of this is foolproof, but testing a business model will help before jumping into things.

Josh

References:

1. JWI575. Week 8 Video. Tio Gazpacho: Strategic Alliances.

2. Guy Kawasaki. 2015. The Art of the Start 2.0.

3. Tim Ferriss. 2009. The 4-hour Workweek.

Hi Dr. Brenda and Classmates,

Find my answers below.

The Benefits of Partnerships

Companies form partnerships for many reasons: for example, a company may create alliances to optimize its business models, reduce risk, or acquire resources. Such partnerships are becoming the cornerstone of many contemporary business models.

Austin discusses the benefits of two major partnerships, one with General Mills and one with ThinkFoodGroup. Think about Austin’s experiences with these partners, and then consider what partnerships you may need to be successful with your new idea.

KEY PARTNERSHIPS: Describes the network of suppliers and partners that make a business model work.

After reviewing the above definition, answer the following questions:

• What have you learned from the Tio case to help you develop strong partnerships in the future?

I learned that for entrepreneurs is crucial to think in advance what key partnerships will be needed to grow your business. I liked that Austin (1) used his network to introduce Jose Andres and his organization ThinkFoodGroup. Resilience is the other trait that I gave Austin credit for. Waiting is not easy, and waiting six months requires a lot of self-assurance as a leader of any organization. I believe he did a good job assessing who would be a good match for his business (JWI575,2) and then chose General Mills and Jose Andres.

• Who are your Key Partners? Why?

The University of Maryland (3) has one of the most advanced heat transfer laboratories in the USA. I must demonstrate with technical data that using high-efficiency alloys can allow my customers to save a significant amount of money if they choose us as the main supplier because they can use lighter tube assemblies with the same mechanical properties. Having this partnership will allow us to have a quick turn around for testing and will be significantly cheaper.

For mid-term growth, I plan to establish a partnership with Canadian OEMs where I can use my strategic location in Mexico to manufacture coils and commercial AC units. Right know I have an analysis of at least three companies that I want to approach.

• Who are your Key Suppliers? Why?

My key supplier is one tube manufacturer (4), a leader in developing high-efficiency alloys for the HVAC industry. I know them pretty well because I used to work for them, so I have the advantage of having key relationship switch decision makers which are willing to support my new business. This relationship is crucial because using unique copper alloys is my main differentiator and competitive advantage versus my competitors.

I am working to establish another agreements with and Asian tube supplier that established operations in Mexico. I think it is critical for us to have a second source of copper and aluminum.

Regards

Enrique

References:

1.JWI575. Week 8. RTC Video. Tio Gazpacho: Strategic Alliances

2. JWI575. Week 8. Lecture Notes: Building a Winning Team

3. https://enme.umd.edu/research/phase-change-heat-transfer-laboratory

4. https://virtustube.com