International Strategic Alliances in Aviation Industry

This report analyzes the literature review, discussion, and analysis of international strategic alliances in the aviation industry. It explores the benefits, challenges, and suitability of strategic alliances, as well as alternative market entry strategies. The focus is on the Star Alliance, one of the largest strategic alliances in the global aviation industry.

Individual Academic Report

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LR................................................................................................................................................3
Discussion and analysis...............................................................................................................7
CONCLUSION..............................................................................................................................10
REFERNCES.................................................................................................................................12

INTRODUCTION
International business market entry has wide role within company’s business planning,
on which aviation industry has been evolving towards usage of strategic alliance and new
advanced scale functional expertise goals rapidly. UK's aviation industry has been found to be
one of the best competent industry, heading on towards international business positioning and
idealistic competencies' engagement goals rapidly. Star alliance has been taken as strategic
alliance further significantly bringing on best scale rise rapidly among working targets, based on
commercial competitive expertise. The report will be analysing in detail literature review,
discussion and analysis evolving among new business growth factors with usage of strategic
alliance among companies for strengthening higher productive diversity. Study will also further
in detail bring analysis worked on towards varied benefits, challenges of strategic alliance and
how new deployment of resources are done. Research will also in detail generate in depth
analysis worked on rapidly in implementation of strategic alliance as method for
internationalization among aviation industry companies. Star alliance is one of the best and
highly diversified method of internationalization adopted by companies to further extensive head
on corporate growth domains dynamically. The strategic alliance has been found to be highly
fruitful and widely successful for diversified new international positioning, which further has
extended new channels.
Literature Review
Analysis of international strategic alliances in aviation industry
As per the views of Haapavaar (2020), strategic alliances within aviation industry holds
wide role to further enhance the best business competencies diversely, based on functional
working expertise targets for larger commercial expertise growth targets. Aviation industry is
widely expanding within recent time periods, based on strategic work competencies among
companies to expand global aviation services and generate new scale expansion rapidly. Star
alliance has 26 member airlines companies, where alliance has come together to offer smooth

connections around world with high infrastructure, travel experience for travellers based on
significant commercial goals. International strategic alliance within aviation industry has been
competently growing with high structural advancement, new work synergies and competitive
business frameworks. Research papers by author, has also examined in detail that star alliances
have specific role among working determinants for presenting higher competitive initiatives. The
alliance has commercially found as one of the biggest alliance within UK aviation history where
members provide high scale richness of diversity and strengthened dedicated functional rise
proactively.
However, another author Woo (2020), also presents contradictory aspects where
international market entry parameters holds various other formats also, which are different form
strategic alliance. The author significantly addresses functional working approach where
strategic alliance has high legal compliances and requires new defined business frameworks to
be implemented, based on new plans and working goals. Varied other international market entry
methods such as franchising, joint venture can be also adopted to further generate new work
productive diversity for larger competencies' engagement. By heading on towards new business
market entry methods companies have also scope to further be cost effective, be vision oriented
and also significantly diversify as per latest business demands. There is further also scope to
strengthen up innovation goals productively, be keenly oriented to be specifically advanced and
also enhance new operatives rapidly.
Motivations behind formation of international strategic alliance.
As noted by Paul (2020), there are varied motivations behind formation of international
strategic alliance which can be understood based on productive increased market penetration,
competitiveness within global aviation industry. With high capital investments, and new scale
rise on productive services, international strategic alliance further opens up advanced working
platforms for usage of optimum resources fundamentally. There is also motive to expand among
competitive consumer’s base market, be resourceful with varied services and hold diversity
within economies of scale, driving global business risks and setting advanced standards within
new structural efficiency further opens up competitive scope, leveraging untapped fundamental
productivity goals within longer run. Star Alliance being one of the biggest star alliance, based
on Germany founded by carriers, Lufthansa, Air Canada, Scandinavian Airlines, Thai airlines
and United Airlines for larger global market reach within aviation industry. It can be analysed

that alliance further opens up wider scale competencies for strengthened business productive
parameters, based on quest rise goals. Research paper has analysed detailed motives such as
higher profits rise, larger customers and external stakeholders' engagement as some main
optimum productive targets for higher structural innovation.
Another author, on other hand Al-Kwifi, Frankwick and Ahmed (2020). contradicts
research based on aspects where motivations behind international strategic alliance hold high
range of uncertainty also for new companies. With increasing risk of capital, new structural
functional legal compilations strategic alliance has high risk factors also involved. This can be
also understood that with complexity factors increasing, there is also further external risk based
on new capital investments and further engaging as per larger customer target market. External
business goals have significant role, on which recent changes evolving on international aviation
industry domains where the compliance factors also need to be considered. This can be also
examined that research papers by author also examines focus on complications, and challenges
on external aviation industry which further heads towards evolving new paradigms dynamically.
Benefits and challenges of in international strategic alliance
As illustrated by Button, (2020) global strategic alliance is established with aim to edge
into new business international competencies, where formation further offers advantages as well
as disadvantages. Star alliance formation has further opened up new platform, for exploiting new
international benchmarking for companies to diversify technology and strategic direction rise
rapidly. It has further also enhanced business goals, skills and working competencies
productively based on new multi channels within international goals and higher interactional
engagement goals. Star Alliance has been found to be one of the best and largest strategic
alliance in Global aviation, which further synchronized optimum international customers reach
and cultural expansion strategically within market place. Research papers by author, has also in
detail examined focus towards strengthening higher competitive international positioning for
companies to diversify innovatively. The benefits' analysis further also opened up new range of
working competitiveness evolved on dynamically based on new significant plans, and also
furthermore it enables business diversity to be functionally operated, Strategic alliance has been
found to be also one of the most profound method within international business expansion in
aviation industry, based on regulatory expertise and technical development.

On contrary, another author Dhaundiyal and Coughlan (2020), presents some key
working aspects within challenges based on usage of strategic alliance where challenges can be
analysed based on high risk and fluctuating economic conditions. Less stability factors and
difficult to retain new untapped competitive working advancement, further also decreases larger
vision oriented stability goals functionally. Strategic alliance also further reduces loss of control
on varied business policies and issues such as keeping track of product quality, keeping analysis
evolved on operating costs and employee’s engagement goals. It further also signifies specific
range of complications such as risk of economic fluctuations, political risk and varied new scale
shift within range of technical paradigms evolve on dynamic business goals. Author has also
significantly addressed challenges such as changing varied new threatened efficacy rise among
working operatives, where strategic alliance holds risk factors and less productive engagement.
The new capital investments also need to be definitely kept track on, which further reduces
functional efficiency targets dynamically.
Alternative market entry strategy
As per the views of Li and et.al (2021), there are varied other alternatives market entry
strategies other than strategic alliance which has further essential role to evolve on towards new
dynamic business domains for larger scale expertise. Usage and implementation of market entry
strategies further opens up new domains, larger target market reach commercially for new target
engagement goals rapidly. This can be also analysed that new market entry strategies further also
open up higher functional growth for new companies to strengthen up specifics, based on
dynamic competencies specifically within recent time period. Research papers by author, has
also examined key competent focus on new strategies such as green field venturing and usage of
joint ventures which are some integral parameters. Greenfield venturing is new form of market
entry strategy with establishment of new wholly owned foreign country, by constructing
facilities based on demanded innovation goals.
Author has also examined focus towards efficacy parameters which further also opens up
new platforms, for dynamic new competitiveness aspects and to determine larger competent
scope rise (Antelo and Peón,2021). Strategic alliance being one of the most analysed
international method for aviation industry expansion, has been found to be also key productive
option for companies to implement for larger scale structured operatives dynamically.
International market positioning has key fundamental role to keep track of new structured

efficacy aspects, strengthened up leveraged scope for target market for untapped business goals
rapidly.
Discussion and analysis
Discussion and analysis will enable us to analyse business strengths and functional
working priorities, based on functional rise proactively which further will bring before in detail
analysis on international strategic alliance factors. Airline alliance is based on bringing
structural rise among commercial aviation industry targets, the best business strategies
implementation and for strengthened engagement among stakeholders. Strategic alliance as one
of the most productive international market entry strategy further opens up new business
platforms, bringing on rapid connective functional abilities and dynamic strengths evolved.
Understanding on suitability of international strategic alliances in airlines
international/global expansion
Understanding of suitability in strategic alliance further strengthens up working abilities
for companies to expand international global expansion, based on working operatives and
significantly bring wider scale quest parameters evolve on. The suitability of international
strategic alliances within aviation global industry can be understood as widely essential for
strengthening larger range of functional growth productively, based on strategic working
capabilities.
 Strategic alliance further opens up new networks for dynamic business competencies,
which further strengthens up larger scale productive strengths within longer time periods.
Suitability of international strategic alliance can be understood with aim to ensure
competitiveness has strong functional rise, based on larger productive innovation and
international global expansion targets (Castiglioni, Cobeña and Galán, 2021).
 Implementation of strategic alliance further adds to profound rise and connective
strengths towards diverse determinants, higher technical functional productivity for wider
time period. Star alliance has been analysed to be one of the best international strategic
alliance in global expansion, based on corporate functional optimisation and higher
connective business operatives.
 Furthermore, international aviation industry has been productively shifting towards
dynamic strengths, higher specific functional operatives for new business goals

(Wang,and et.al, 2021). It can be understood that Star Alliance has been also evolving
recently based on new optimum targets for best working synergies, higher keen optimum
productivity in collaboration with various companies within aviation industry.
Benefits and challenges analysis
Star alliance has varied benefits and challenges which has functional role for further
strategic connective diversity and expansion working goals, where Star alliance is one of the
biggest strategic alliance. Aviation industry has been potentially expanding towards dynamic
business competencies, functional strengthened abilities engagement and also to imperatively
expand new working efficacy targets
 Benefits such as wider customer’s engagement among new customer’s target market,
strengthens functional rise proactively for larger productive strengthened scope. It
expands operations significantly with high scale brand awareness, quality services and
enhanced business strength for larger significant time period. Other benefits such as
determined functional strengths, higher creative work advancement and new primitive
functional scope for larger time periods (Tjemkes and Simoons, 2021).
 Furthermore, there is further scope to strengthen up international business channels,
expertise factors with significant connective working goals proactively within varied
domains. Strategic alliances within airline industry ensures competitive parity with
respect to routing and varied factors, such as on time departures and varying customer
services which makes sure competitive strengths are worked on properly.
 Star alliance has significantly been found as one of the largest alliance in aviation
industry, for attaining higher optimistic growth in collaborating companies with each
other for higher innovative functional strength. International global working platforms
further bring on new space and higher business connective business strengths, for
companies to extensively head larger pace working goals (Bamel, Pereira and Cappiello,
2021).
There are some specific challenges also withChallenges of strategic alliance has
significant role for companies within aviation industry, where further it becomes essential for
companies to head on profound rise.
 There are varied challenges also with implementation of strategic alliance, where analysis
further heads on profound focus towards factors such as management involvement, fear

of market insulation due to instability factors. Also, furthermore challenges such as
difficulty to keep objectives on target market reach reduces functional efficiency goals
rapidly within longer time stability objectives. This can be also understood that strategic
alliance has some disadvantages also, based on less autonomy among companies’
business priorities which further brings on decline within business strengths widely
(Advantages and Disadvantages of Global Strategic Alliances, 2019).
 Higher risk based on fluctuating business economies such as larger technical rise based
on productive efficacy optimisation, external varied risk factors are some of the
challenges. Challenges such as less frequency growth, less equity stake and difficult to
keep objectives on target over time and further loss of control and important issues
decline such as product quality services and operating cost factors. There are other
market entry strategies also, which can be significantly headed on for corporate
functional growth diversely and to further head on profound rise abilities actively.
Recommendations for new alternative market entry strategy
The alternative market entry strategies within international aviation industry can be
understood as variedly essential for functional growth in larger business strengths and
strengthened business optimisation. Recommendations based on alternative market entry
strategies, further opens up new working pace proactively based on specific working rise
growth. Other commercial and competitive international market entry strategies can be discussed
based on evolving work synergies, new strengthened business engagement priorities and larger
vision oriented targets (Where are the top 10 fastest emerging markets in aviation?, 2020).
Green field venturing:
This is form of international market entry strategy with establishment of new wholly
owned subsidiary, in international country where it further heads on large focus actively. Usage
of greenfield venturing further opens up new space for larger functional working engagement,
new leveraged scope for stringent expansion strategically among new fundamental work
operatives. High level of quality control factors within sales of products and services further
strengthen up brand image and larger control factors, based on economies of scope for marketing
expertise growth factors. Implementation of this technique has some disadvantages also, where
extreme high risk investment within foreign direct investment and potential high barriers within

market entry cost factors have to be focused on. Furthermore, it is also challenging strategy and
ha some potential risk factors functionally based on new working technical factors for longer
technical strengthened benchmarks. Usage of greenfield venturing further opens up new working
strengths dynamically, for new enhanced business scope and use of best untapped innovative
goals for stringent connectivity.
Licensing:
Licensing is transfer related market entry strategy which involves company to grant
permission within business operation expansion among international country factors diversely
based on usage of intellectual property. Defined period time expansion enables business to
diversify strategically, extensively head on corporate aviation industry growth scope effectively.
It creates opportunity for new income growth rise proactively, based on reduced risk factors and
also it further enables companies to expand strategically on foreign markets. Licensing also has
strategic connective strengths, which makes revenue and goodwill potentialities evolve on
dynamically based on strategic connective benchmarks rapidly (Aguzzoli, Lengler and Benito,
2021). However, it can be understood that licensing further also has some disadvantages also,
where product control is lost based on including services related to promotion, selling and
specific business avenues. Licensing as new market entry strategy within international market
entry aspects has been found to be another key productive technique which shapes up aviation
industry growth internationally.
CONCLUSION
From the above analysed aspects within report, it can be concluded that strategic alliance
further has been found to be one of the best international expansion method within aviation
industry for optimum functional strengths. The report has concluded in detail LR format and
discussion, analysis for bringing on working productively based on significant functional
abilities within strategic alliance. Star alliance has been found to be one of the largest alliance in
aviation industry, based on corporate functional priorities and significant optimistic growth
targets dynamically shaping competitive functioning. Motivations behind usage of strategic
alliance has been found to be highly optimistic, as it further opens up economies of scale,
resource effective usage and larger customer market reach factors. Study has also concluded
research within varied benefit and challenges of corporate strategic alliance, based on significant

functional usage for higher collaboration in airlines companies. Report also further concluded
varied other market entry strategies, based on new innovation goals and rapid strengthened
business diversification factors effectively. Research has concluded greenfield venturing and
licensing as some of the crucial growth strategies, based on varied strategic connective flexible
new business scope rise actively.
REFERNCES
Books and Journals
Aguzzoli, R., Lengler, J. and Benito, G. R., 2021. Here we go again: a case study on Re‐entering
a foreign market. British Journal of Managemen. 32(2). pp.416-434.

Al-Kwifi, O. S., Frankwick, G. L. and Ahmed, Z. U., 2020. Achieving rapid internationalization
of sub-Saharan African firms: Ethiopian Airlines' operations under challenging
conditions. Journal of Business Research. 119. pp.663-673.
Antelo, M. and Peón, D., 2021. The Size of Strategic Alliances and the Role Played by
Managers. Journal of Industry, Competition and Trade. 21(2). pp.287-313.
Bamel, N., Pereira, V., and Cappiello, G., 2021. Knowledge management within a strategic
alliances context: past, present and future. Journal of Knowledge Management.
Button, K., 2020. Interactions of global competition, airlines strategic alliances and air traffic
safety. In Aviation Safety (pp. 525-544). CRC Press.
Castiglioni, M., Cobeña, M. and Galán, J.L., 2021. The role of cooperation in productivity:
Alliance portfolio and network resources. Research in Transportation Business &
Management, p.100646.
Dhaundiyal, M. and Coughlan, J., 2020. Understanding strategic alliance life cycle: a 30 year
literature review of leading management journals.
Haapavaara, R., 2020. Internationalization by Creating a Strategic Alliance with Distribution
Partners.
Li, Y and et.al, 2021. Impact of alliances and delay rate on airline performance. Managerial and
Decision Economics.
Paul, J., 2020. SCOPE framework for SMEs: A new theoretical lens for success and
internationalization. European Management Journal. 38(2).pp.219-230.
Tjemkes, B. and Simoons, P., 2021. Alliances and COVID-19 An Alliance-Shock Response
Framework. Annals of Social Sciences & Management studies. 6(2). pp.58-62.
Wang, C. H., and et.al, 2021. Frequency competition among airlines on coordinated airports
network. European Journal of Operational Research.
Woo, H., 2020. Foreign venture capital firms and internationalization of ventures. Multinational
Business Review.
Online
Advantages and Disadvantages of Global Strategic Alliances. 2019. [Online]. Available
Through :< https://www.thebalancesmb.com/global-strategic-alliances-
advantages-and-disadvantages-1953552>
Where are the top 10 fastest emerging markets in aviation?. 2020. [Online]. Available
Through :<https://www.internationalairportreview.com/article/82430/top-10-
emerging-markets-aviation/>