Even experienced strategists mess up the Key Activities building block. Avoid these three traps:
Pitfall #1: The Laundry List
Pitfall #2: Confusing Outputs with Activities
Pitfall #3: Static Thinking
Q: Can a startup have different Key Activities than an enterprise? Yes. A startup’s Key Activity might be "customer discovery" and "rapid prototyping," whereas an enterprise’s is "process optimization" and "market defense." key activities business model
Q: How do Key Activities relate to the Cost Structure? Your most expensive costs will almost always be tied to your Key Activities. If "R&D" is a Key Activity, your cost structure must prioritize lab equipment and scientists. If "Marketing" is a Key Activity, your cost structure must prioritize ad spend.
Q: What if my business has two different models? You may need two Business Model Canvases (a common strategy for hybrid businesses like "Product + Service" or "Retail + Media"). The Key Activities for the product division (manufacturing) will conflict with the media division (content creation).
Ready to map your own Key Activities? Download our free Business Model Canvas template below and start with the question: "What are the three things we do that no one else can do for us?"
Generally, Key Activities can be categorized into three distinct groups, depending on the type of business model: Even experienced strategists mess up the Key Activities
1. Production These activities relate to designing, making, and delivering a product in substantial quantities. This is the primary focus of manufacturing companies.
2. Problem-Solving These activities are dominant in service-based businesses where the value proposition is centered on solving specific issues for individual customers or organizations.
3. Platform/Network These activities are central to business models that rely on connecting different user groups or managing a platform.
Identifying the right Key Activities is essential for operational efficiency. It forces entrepreneurs and managers to distinguish between "busy work" and "value-creating work." Pitfall #2: Confusing Outputs with Activities
If you can easily or cost-effectively outsource an activity to a third party (e.g., payroll or cleaning), it is likely a secondary process, not a Key Activity. Core activities are those you must excel at internally to differentiate yourself.
These activities involve coming up with new solutions to individual customer problems. This is knowledge-intensive and requires significant human capital.
Key Activities for our service-driven model revolve around human expertise and client relationships. Our core actions include:
Key Activities can generally be classified into three distinct categories depending on the type of business model.