Business Model Canvas (Key Partner and Cost Structure)

KEY PARTNERS
Advantages of partnership:
a. Acquires capital- one will manage the business and one will contributes money.

b. Share experience, labor, and skill-  one partner may well-knowledge with selling and dealing with customers while others specialized in repairing work.

c. Reduce the risks, all the partners will share the liabilities.

First of all, we identified our key partner which is students from business faculty and engineering faculty who are graduated. For the reason we choose graduated students from these 2 faculties is because of student from engineering faculty have experiences with mechanical stuffs. We can hire them after they graduated and become a licensed mechanic. Moreover, hire talented motorbike experts in repair and maintenance will instil confidence among the customers. Yet, we set up a business is to build a long-term relationships with our customers so that they will back not only for repairs, but also purchase accessories such as helmet. An addition, students from business faculty can help us to advertise and promote our workshop besides they have enough knowledge on business strategies. A good business strategy will help us to expand our business effectively.




Later, we have to determine our key suppliers. We have decided to open a motorcycle repair shop which not only repair one brand of bike but different brands such as Honda, Suzuki, Yamaha, Kawasaki and so on. Many of these motorcycle companies need us to sell their accessories and use parts. Besides that, we should find a supplier that offer wholesale prices. Despite of this, we need to have a trusted supplier. Thus, we can select the inventory you want to start your motorcycle business from them with a lower price or discount. This will prevent getting cheated by others suppliers.

Cost Structure
There are two costs in conducting our business which is fixed cost and variable cost. Our fixed costs are rental, salaries for office manager and mechanics, equipments such as machines and tools. Then, our variable cost will be cost of utilities (water and electric), cost of repairing tools and machines, cost of purchasing accessories and use parts.



The most important cost inherent in our business model is the cost of buying accessories and use parts of motorbikes. However, according to the economics of scale, the more you buy, the cheaper you will get. Next, we can contact large motorcycle part suppliers and wholesale dealers to negotiate a discount if we buy in bulk. We must only take inventories of the item that we really needed such as common items: oil, filters and gloves on hand. We can also recycle the used parts included engine parts, body, gas tanks, electrical parts and wheels. Thus, it will minimize the cost, increase our profit and lead us to a cost-driven structure.

The key resource which is most expensive is the cost of machine (capital). We need machine to start up our business. However, to make it cost-driven, we can consider to buy second hand machine from a other motorbike business which decide to change their machines.

The most expensive key activities will be the motorbike accessories fair. In order to carry out this event, we have to buy some special or outstanding accessories for exhibition. For instance, we need to buy beautiful design helmet from foreign country to attract consumers. As a solution, we can either find sponsors to support our event or sell the helmet with reasonable price after the fair.