1.2 Business alliances

A business alliance is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by an integrated project team. An example of this is code sharing in airline alliances.

There are five basic categories or types of alliances:

1. Sales: A sales alliance occurs when two companies agree to go to market together to sell complementary products and services.

2. Solution-specific: A solution-specific alliance occurs when two companies agree to jointly develop and sell a specific marketplace solution.

3. Geographic-specific: A geographic-specific alliance is developed when two companies agree to jointly market or co-brand their products and services in a specific geographic region.

4. Investment: An investment alliance occurs when two companies agree to join their funds for mutual investment.

5. Joint venture: A joint venture is an alliance that occurs when two or more companies agree to undertake economic activity together.

In many cases, alliances between companies can involve two or more categories or types of alliances.

Another type of an alliance is a horizontal alliance. For example, a horizontal alliance can occur between logistics service providers, i.e., the cooperation between two or more logistics companies that are potentially competing. In a horizontal alliance, these partners can benefit twofold. On one hand, they can "access tangible resources which are directly exploitable." In this example extending common transportation networks, their warehouse infrastructure and the ability to provide more complex service packages can be achieved by combining resources. On the other hand, partners can "access intangible resources, which are not directly exploitable." This typically includes know-how and information and, in turn, innovation.

The Auto Alliance is a trade group of automobile manufacturers that operate in the United States. It is the leading advocacy group for the auto industry, representing 77% of all car and light truck sales in the United States. The Auto Alliance is committed to developing and implementing constructive solutions to public policy challenges that promote sustainable mobility and benefit society in the areas of environment, energy and motor vehicle safety. Mitch Bainwol is the CEO of the Alliance of Automobile Manufacturers.[6]

The trade group formed on January 13, 1999 to replace the American Automobile Manufacturers Association, which had represented only American manufacturers. As of January 2017, members of the Auto Alliance are:[7]

• BMW Group

• Fiat Chrysler Automobiles

• Ford Motor Company

• General Motors Company

• Jaguar Land Rover

• Mazda

• Mercedes-Benz USA

• Mitsubishi Motors

• Porsche

• Toyota

• Volkswagen Group of America

• Volvo Car USA

1.3 Chaebols

A chaebol  is a South Korean form of business conglomerate. They are typically global multinationals and own numerous international enterprises, controlled by a chairman with power over all the operations. The term is often used in a context similar to that of the English word "conglomerate". The term was first used in 1984. There are several dozen large Korean family-controlled corporate groups which fall under this definition. The chaebol have also played a significant role in South Korean politics. In 1988, a member of a chaebol family, Chung Mong-joon, president of Hyundai Heavy Industries, successfully ran for the National Assembly of South Korea. Other business leaders also were chosen to be members of the National Assembly through proportional representation. Since 2000, Hyundai has played a role in the thawing of North Korean and South Korean relations.

Samsung  is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul.  It comprises numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate).

Samsung has a powerful influence on South Korea's economic development, politics, media and culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17% of South Korea's $1,082 billion GDP.