A Study of Business Models and Strategic Alliance in the Home Network Industry in Korea: Analysis and Suggestions

In Korea, the home network industry has been the object of great expectations among the government and business community. Thus far, however, it has proved unable to fulfill these expectations. In this study, we categorize three classes of services and five participant industry sectors with regard to Korea´s home network industry. We consider that the differences in their business models from these three different participant industry sectors hinder the growth of the home network industry. Hence we analyze business alliance theories for the home network industry to cooperate with each other in order to complement the differences between their business models. We propose five cooperation strategies for the three classes of home network services and two related issues. Finally, we offer some suggestions to help remove the obstacles to business cooperation among the participant industry sectors of the home network industry.