International Strategic Alliances in Foreign Market Expansion

Individual academic report
International Business

Executive summary
Global alliances are referring to the means of achieving one such enhanced procedure,
not so much because they permit them to acquire access to multiple markets across the globe,
and also because they help businesses to reduce their own worldwide competence by using
the capabilities of their allies. International collaborations exist in a variety of industries and
also between enterprises of various sizes. Organizations form alliances for a variety of
reasons, including cost-cutting in manufacturing and research, increasing position in the
market, and gaining access to the intangible resources of other businesses.

Contents
Executive summary.............................................................................................................................2
INTRODUCTION...............................................................................................................................4
LITERATURE REVIEW...................................................................................................................4
Review of the literature related to the use of international strategic alliances in foreign market
expansion...........................................................................................................................................4
Motivations behind the formation of the selected International strategic alliance.............................5
Benefits and challenges of the international strategic alliance selected to the partners involved.......8
suitable alternative market entry strategy..........................................................................................8
ANALYSIS AND DISCUSSION......................................................................................................10
CONCLUSION..................................................................................................................................11
REFERENCES..................................................................................................................................12

INTRODUCTION
An international strategic alliance is often characterized as a cooperation partnership
involving companies located in different nations. After the establishment of an alliance, the
partnering firms retain their legal independence, and the partners connection is considerably
longer. International strategic partnerships can be classified in a variety of ways. Strategic
partnerships have existed since the inception of corporate enterprises, and they are always
beneficial to both parties (Collinson and et. Al., 2020). Such partnerships have been
widespread on a worldwide scale for the last 50 years and have proven to be extremely
beneficial to so many companies. When two or more organizations with diverse domestic
origins come together and combine their resources to pursue a shared goal while maintaining
their own identities, a global strategic alliance is established. These alliances can be created
to either design a product or just to share information. In addition to this, strategic alliances,
partial equity financing, equity exchanges, joint research and development, joint production,
joint marketing, lengthy purchasing partnerships, shared transmission, and guidelines are all
examples of strategic alliances. Current report is based on British Airways, is a famous airline
company that serve their services worldwide in order to established their competitive edge. In
addition to this, the Oneworld alliance, founded in 1999 by American Airlines, British
Airways, Cathay Pacific, and Qantas, was founded by British Airways. Report is going to
discuss about different international strategic alliances and with its benefits and drawback.
LITERATURE REVIEW
Review of the literature related to the use of international strategic alliances in foreign market
expansion
Organizations really want to go international and enter international markets for a
number of reasons, and all these diverse purposes at the moment of entrance should result in
distinct strategies, performance goals, and even influencing purchase forms. Businesses, on
the other hand, frequently follow a typical market entrance and expansion strategy. The most
prevalent is known as the “growing responsibility” strategy of market expansion, wherein the
market entry is accomplished through an active local partner. This internationalization
strategy comes from the desire to establish a business in a foreign country market as soon as
feasible, as well as an initially decision to prevent risk, along with the necessity to understand
about just the national and marketplace from of the ground up (Buckley and Casson, 2019).
Over the last two decades, there has been a tremendous increase in international trade and