A sister company is a company that is closely associated with another company with a separate name and personnel. Both companies belong to the same parent company and are considered subsidiaries of the larger company. While some subsidiaries are not closely related and may have limited interaction with each other, other companies have close ties and these are examples of sister companies. Any company may have this kind of relationship.? Businesswoman talking on cell phone In a simple example, a large company could have 10 subsidiaries in different industries such as food and shipping, as well as manufacturing. The companies within each industry could be sister companies. The company could own a chain of bars and grills under the ABC brand, and another restaurant group under the XYZ brand. The two chains may be affiliated, rather than operating completely separately. This can attract customers loyal to one brand and encourage them to try the other because they like what the original brand offers. Each sister company has its own staff and brand. It is accountable to the parent company, but they are largely autonomous when it comes to making purchasing decisions, designing packaging and facilities, etc. Companies with sister relationships can cross-promote each other and encourage customers of one company to visit the sister company. They are often careful to avoid operating in competition, targeting slightly different markets or operating in different regions to provide full coverage of a particular country or state. Products and Services Offered by Sister Companies They can offer different levels of products and services to appeal to different kinds of customers, which is one way to avoid conflicts between subsidiaries Their sister company relationships can lead to greater industry influence because they can *** negotiate contracts together or lobby together for changes in industry standards and policies. The fact that sister companies are owned by the same parent company is not always immediately obvious. In some cases, a company's mission statement and disclosures may include a discussion of each sister company that is part of a larger parent company. In other cases, it may be necessary to dig into the owners of the company and learn more about the nature of their relationship. In the case of a parent company, there may be benefits to not giving its subsidiaries its own name, such as attracting consumers who are trying to avoid the parent company or who are trying to access more independent businesses.