International Strategic Alliances in the Airline Sector

Individual Academic
Report
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EXECUTIVE SUMMARY
Over the last decade the scenery of the international business environment went into
numerous substantial changes and this trend gives rise to the International strategic alliances.
After the globalisation the Inter- firm collaborative strategies have infused the global business.
Airline alliances are the booming trend which is growing over the last few years to a practise an
interregnal part of the passenger industry. The one of the greatest airline alliances is the
Oneworld who has partnered with the British Airways and many more. Following report consist
an in-depth literature review of the strategic alliances in the airline sector and after that a critical
evaluation of the various determinate which would be discussed in the literature review section
in order to get into a specific point of action. Also the following report discuss the suitable
alternative market entry stray as the recommendation strategy for the concern company.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
Literature Review.............................................................................................................................2
Critical review of the literature related to the use of international strategic alliances in foreign
market expansion........................................................................................................................2
The motivations behind the formation of the selected International strategic alliance...............3
A critical assessment of the benefits and challenges of the international strategic alliance
selected to the partners involved.................................................................................................4
A suitable alternative market entry strategy in your recommendations......................................5
Analysis and discussion...................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
International business has seen various sustainable changes in the last few years and after
the globalisation there is growing trend of the strategic alliances. It is a strategic business
arrangement where two or more organisation only for their mutual profits comes under the forms
of cross licensing and joint research and development where they are marketing each one product
by using the same existing supply chain channel. Strategic alliances is done to gain the benefit of
the ease entry this is because international strategic alliances might present a ways to overcome
the barrier for that entry that hinder the one company’s international expansion strategy. In the
last few decades of the international aviation, the global strategic alliance have come out to be as
the one of the significant form of cooperation between the airlines. It has argued that the strategic
airline alliances are said to be as the intentional contract between the carrier with ain to enhance
their global competitive position without compromising with their economic independepende.
Oneworld is a kind of airline alliances with an objective to become as the first choice airlines
alliances for the global recurrent international traveller (Wang and et. al., 2021). Therefore,
following report will discuss the various attributes of the international strategic alliances which
many international business are using for the market expansion.
Literature Review
Critical review of the literature related to the use of international strategic alliances in foreign
market expansion.
As per the dynamics of Chatterjee, Mukherjee and Datta (2021, they have defines the
strategic alliances as the collective procedure among the firms in the different countries.
Moreover, the international alliances is an international market expansion strategy which can be
categorised along the multiple dimensions. However, it has been critically reviewed that the
International strategic alliances are becoming the vital part of the many airline company’s
international business strategies. Hence, it is critically stated that the international alliances are
acting as the strategic weapons for the many organisation and this trend gain more importance in
the airline sectors (International Strategic Alliances, 2019). It has been critically analysis that the
alliances is said to be as the voluntary contract among the various airline to pool the resources.
This strategically moves provided many opportunity in form of foreign market expansion entry
without any obstacle and extended the capability of the many airline companies to compete with
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