Business alliance

agreement between businesses, usually motivated by cost reduction and improved service for the customer

A business alliance is an agreement between businesses, most of the time to help lower cost and improve service for the customer. Alliances are often connected by an agreement with shared risk and opportunity for all business involved. They are usually managed by a project team. An example of this is code sharing in airline alliances.

There are five basic types of alliances:[1]

  • Sales alliance
  • Solution-specific alliance
  • Geographic-specific alliance
  • Investment alliance
  • Joint venture alliance


  1. Kuglin, F.A.; J. Hook (2002). Building, Leading, and Managing Strategic Alliances: How to Work Effectively and Profitably With Partner Companies. American Management Association. ISBN 9780814406830.

Related pagesEdit