International Strategic Alliances: Motivations, Challenges, and Benefits

This report examines the motivations, challenges, and benefits of international strategic alliances. It discusses the importance of strategic planning and explores different types of alliances. The report also highlights the motivations behind forming strategic alliances and the challenges and benefits associated with them. It concludes with recommendations for businesses looking to enter new markets and expand their operations.

Individual Academic
Report

EXECUTIVE SUMMARY
This report examine that international businesses defines that organization for traded of
products or services in the international market to get more opportunities and sharing all the
information which are necessary in the global market share all experience and skills. Selected
organization wants to extend their businesses to improve productivity and profitability in terms
to accomplish their goals and objectives and to overcome reduces the risk and uncertainty. This
report covers various methodologies which is related to strategy in order to improve achieve their
goals and objectives. Various benefits of strategic alliances to enhance their profitability and
capability to share all the information, resources, knowledge, skills and experiences so that they
can discuss decrease the cost risk and uncertainty. From the business organization, there is a
critical assessment that is international studies, sales which is linked to various partners who are
included with them and there are various few recommendations of the business organizations to
adapt new technologies and attractive more facilities to a business success grow that business
organization into international marketplace.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Literature review.....................................................................................................................................5
Analysis and discussions.........................................................................................................................7
Motivations behind formation of selected international strategic alliance...............................................7
Challenges and benefits of international strategic alliance......................................................................9
Recommendations.................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
International business defined that various products or services are delivered into other
country across globe or a global transaction sales which involves transactions between two or
more nations for distribution of goods and services are shifting (Ahsan, Adomako and Mole,
2020). It should be a great opportunity for international business that they across border to
deliver their goods and services in other nations. To increase your productivity and profitability
for business organizations who have adapted international businesses for transfer of goods and
services to extend their businesses. It is very important that each and every firm as a strategic
plan which can be used to give right detail for right person at the right time to accomplish their
goals and objectives within a short span of time. To change a surrounding, it is essential that they
require a proper planning for various solutions and their various problems are arises. In airline
industry, different types of services are provided by clients who can be helpful to managing all
the functions and maintain their performance in accomplishment of goals and objectives in an
efficient manner (Qorraj and Jusufi, 2019). For this assessment, selected organizations is Ryanair
is a British low-cost airline which is based in London and it is a low-cost airline group of holding
which was established in 1984 more than 400 aircraft for a pilot training. It is largest aircraft and
holdings group of airlines which is based in UK. In this report, various topics are to be covered
such as literature review for international strategic alliance, motivations behind their selected
international strategic, benefits and challenges of study and market entry strategies for certain
recommendations.
MAIN BODY
International strategic alliance: International strategic alliances that defined a
important part in their business firms because in terms of international business is a collaboration
of economic that particular period of time are accomplish their certain goals and objectives in a
business organizations (Asongu, Biekpe and Tchamyou, 2019). It is more than two or more
firms in partnership where they can accomplish goals and objectives which are most crucial or
essential for their businesses. Strategic alliances of firms are able to share their information and

raise their profitability and productivity in their business organization to accomplish goals and
objectives.
Types of strategic alliance:
 Joint venture is a formulated when two or more are joined together and agree to share
their profit and losses in a business organization and established new child organizations
(Asongu, Folarin and Biekpe, 2019). It should be noted that when two firms are formed
joint venture their new business should be formed where its own identity and operates
separately from two business partner but take advantage of resources of Goodwill,
technological and how partnering firms are cooperated with other firm it can be started a
new project or new business operations.
 Non equity strategic alliance is when two or more firms are joined together and assigned
a contract to fulfill their services and our capability is to share together. Firms are formed
non equity strategy alliances to strengthen their value of propositions to a potential
customers and in case of one party inform their share the profits between themselves also.
 Strategic alliances are concept which is distributed their certain percentage of each
organizations by 40% of equity and 60% are debentures to share an automatically firm in
a new organization. When organized in purchase equity fund with other organization and
ownership for company also purchased in order to gain their certain degree of control
over basis of organizations are operations. It will allow that finance report by one firm to
the other firm on a portion of business organizations (Premti and Smith, 2020).
Literature review
As per view point of 'Lando Zeppei' international strategic alliances are very essential and
effective model for those persons who have established their new goals and objectives in an
efficient manner extend their businesses to other nations (Bacha, S. and Ajina, A., 2019). It is a
concern that two or more organizations are joined together and agreed to share profit and losses
and share all information which are crucial to overcome new businesses to get more
opportunities. Ryanair firm which is airline alliances have a official partner with this company
and it should be considered that sky team alliance, One world alliance and start lines these are
the three firms in order to extend their businesses with organizations and maintain relationship
among various organization in order to get more opportunity. Star alliance is first airline which is

founded in 1997 in Air Canada and came together in order to expand their businesses and
involved many partnership with star alliance so that they can provide their continent towards
business organizations. Various members of Star airlines are such as Air China, Air India, Air
Canada, Egypt Singapore airline, South Africa airways and so on. Sky team is a new airline with
2010 airline members which are many companies should be included such as Delta, Air France,
Air Europe, KLM, Korean Air, Saudia and Kenya airways. One world airlines is a second largest
airline in partnership which was formed in 1998. Strategic alliances are involved many members
are included that represented a number of alliances in one world which are named as British
airways, Alaska Airlines, Cathay Pacific, Qantas, Qatar, S7 Airlines, Sri Lankan and so on
(Bustamante, 2019).
Various reasons are should be discovered to expect that businesses for their goals and
organizations in international business alliances. These companies have to be formulated with a
strategic alliance in order to increase their competitive goals and objectives to formulate their
various strategic alliances as they want to get more success to develop their struggle in terms to
enter new market an established marketing and their competition level in marketplace. They also
support their strategy in terms to economies of scale and wants alliance that all three companies
to clarify their firm which was found in American and Canadian due to merge with Canada
(Carrió-Pastor, 2019). It was amended that second largest airline alliance which is individual
airlines and various passengers are outsiders to America provide maintain relationship in Europe,
East Asia, Africa wants to connect a British airways in terms to get extend more opportunities.
They should also enhance their resources to growing many members’ joint venture, strategic
alliance and structure which has business organizations to develop their functions and activity to
get more opportunities to improve their overall performance in business organizations. Strategic
alliances is a process in order to fulfill all powerful and maintain connections through various
organization because due to Brexit in UK each and every industry are have a line and other
potential impact of economy related to modification of rules and regulations government are
decided by new authority. Ryanair was an introduced airline alliance which has to be connected
across the globe and low cost airlines are very beneficial for this firm (Christ and Burritt, 2019).
It is a firm where they can launch partnership with two or more alliances and enhance their
operational and functional to maintain related with other firm also in order to expand their
effectiveness which is based in London to get a week report. On the basis of announcement of

company that low cost airlines are developed to get more opportunity and increase their
relationship with other airline also to get connect more flights and it becomes a very easier
(Sharif, Aloui and Yarovaya, 2020)
Company wants to get more opportunity with various advantages which is related to
premium status membership. Premium status membership is one of emerald highest tier which is
ruby is lowest and one world alliance like other airlines are launch and announce partnership
with various other airlines such as Abu Dubai to Europe are various extension methods adopted
by company to enter new market strategy which is a joint venture, non-equity strategic alliances
are formed with licensing and franchising so that they can more successful in their firm in a very
appropriate manner (Cummings and Gamlen, 2019). Star alliance is the oldest airline sector
which was founded in 14th may 1997 and it is provided various different types of airline services
to their clients who comes a different nations. Their purpose is to maximize their profits and
minimize their loss for managing all functions and have a high school team members who
perform well to solve many issues related to their sector. Following airline alliances are
liberalization have to face many conflicts their international demand with various travelers are
unable to meet their demand which is most important for each of organization to enter new
market for introducing new products and services. Various people are watching to formulate
their strategy with various clients that changes to aircraft supply services for number of people
which is responsible for a one person to conduct their market analysis and what type of services
are provided to customers which is most significant part of this airline alliances. How they can
influence people to read airline services which is formal and informal way to increase their
profitability and productivity in an competitive environment and needs to get wants and needs of
our customers how they will satisfy their services or not (Díaz and Escribano, 2020). The main
goal to each and every organization is to sell their goods and services in a proper manner and
numbers of customers are increases towards their firms through productivity and profitability are
good should be increased.
Analysis and discussions
Motivations behind formation of selected international strategic alliance
Motivations behind formation of global strategic alliance that will be helpful to enter into
a international market to increase their profitability and productivity in business organization. To

share all information which are necessary in their organizations to accomplish their competitive
advantage (Felzensztein, Deans and Dana, 2019). To share all goals and objectives related to
their strategic alliances such as research and development, joint venture, non-equity strategic
alliances which are common goal that would be used development and manufacturing in
strategic alliances for rest of market position and identify some motives for a joint venture
strategy. Strategic alliances motivation to manage their competitive advantage and increase their
populations of many businesses to enter into a new market for study motivation for strategic
alliances in global market that would be desired a main reason behind to share all knowledge and
skills which are necessary and responsibility to increase their market share (Ferraris, Erhardt and
Bresciani, 2019). To maintain a competitive advantage five major motives of strategic alliances
which are named as creation of transactions, discussion strategic alliances, resource information,
resource evaluation and manage to share all skills which are related to decrease of risk, cost
media such as relation with supply for an operator services in marketplace and technology should
be developed. Five major strategic alliances are increased their strategy and develop their
resources diversification their resources with a special time reason which is related to Ryanair
which helps to company to get more and more market share and should be increased and increase
competitive advantage to build their economic environment in their relationship with customers.
There are also supports their businesses to get more access and strategic alliances a collaborative
management in organizations (Fjellstrom, Fang and Chimenson, 2019). Several reasons which
are applied to get a more opportunities and success in business organizations and show some
talent of follow some steps and choose relevant information is appropriate for their company.
They can share more and more information related to market and take some decisions which are
helpful to gain their partnership in terms to get business success.
 To get more knowledge and skills are those firms which are overcome to reduce risk and
uncertainty.
 It will be allowed that business concern are taking a praising a set in order to get some
more opportunities and more resources to their other partners.
 Strategic alliances help complete that can support their business is to get more
opportunity in accomplish goals and objective in business organization (Huang, Lee and
Chen, 2019).

 It is organized to get a more knowledge and skills which help to understand their
capabilities and role to take a protection in their future time.
Challenges and benefits of international strategic alliance
International strategic alliances are focused on various businesses to entering a new
market in order to accomplish their goals and objectives and are unable to meet their needs and
want in order to get some more opportunities for business success growth (Ivanovich, 2020).
 Business organization has to complete their benefits and challenges on a large scale than
global markets are increased their scope and speed in firm.
 It is also helpful to increase their profitability and productivity in terms to accomplish
their goals and enter into a foreign market to make them more effective and competitive
in marketplace.
 For those companies who can use strategic alliances to increase their businesses in a
competitive market which are helpful to accomplish their goals and objective in domestic
market also (Kerr and Kerr, 2020).
 It is also helpful to increase profitability and productivity and also maintain their cash
flow in their businesses to reduce some risk and uncertainty.
 It is helpful that developments of market are increased very rapidly and quickly way.
Demerits of strategic alliances:
 It is also said that domestic market enter into international market which is very risky that
various organizations are cannot access information share all information is related to
businesses and all different type of business are uses a strategic alliances with other
partners in order to access more technology (Koporcic and Ivanova-Gongne, 2020). It is
helpful to increase their knowledge, skills, experience towards their firm and organization
but being in cash in an organization hands.
 Strategic alliances are used a joint venture to increase their shares and agreed to share
profit and losses and towards other firms to increase their investments in a appropriate
group of contracts and transfers. This type of business in order to maintain their strategic
alliances and most benefits arises because of strategic alliances to maintain their
relationship with other companies and actions of conflicts are among respective partners.

 To share this profit in other organizations because an organization has a profitable
income which is distributed different nations (Lau, Li and Okpara, 2020). In case of
joint venture, they have agreed to share profits because it will be helpful to increase their
profit and productivity and their economy in the marketplace.
Extensions method in order to extend their firm:
Various reasons which are related to extension methods are expand their businesses in
order to international market to increase property and protecting their business organizations are
as follows:
Acquisition: It is one of popular methods which is useful that firm require another firm
to enter into a new market and it is a one of the best advantage to collect their ability and
enhance their technology (Leung and Barnes, 2020).
Joint venture: When two or more companies are joined together to share of profit and
losses in order to complete goals and objectives in business organization.
Franchising: This is method where manager of a business are carry out various method
in order to give their product or services to their franchises.
Licensing: This type of business organization are linked with license and each and every
firm give permission to another firm to sell their product or service in the same price which is
given by them (McKenna, 2020).
Recommendations
From the above mentioned analysis, it has to be recommended that selected organizations
are expanding their businesses due to get some more opportunities in the marketplace and
accomplish their goals and objectives in business organization in a proper manner. Various
recommendation of business organization which are described below:
 It has to be recommended that business organizations are increasing their customer as
well as their needs and demands of customer’s expectations in the marketplace (Nunes
and Russo, 2019). Effective communication which is required for customers because they

can give feedback to their organizations and more and more attractive customer attract
towards their firm so that they can make a proper changes in business strategy.
 It is to be recommended business organization are develop their potential strategy and
appropriate partners in terms to establish their profits and sales which is related to
profitability and productivity in business organization to accomplished their goals and
objectives in a proper manner (Perić, Vitezić and Badurina, 2019).
 Business organizations are required franchising and licensing because they have to
improve their agreement to reach international market place.
 It is to be recommended business organization are improve their skills and knowledge in
the marketplace and adapt new technologies for new innovative ideas through their
knowledge and improve their efficiency and effectiveness so that they can overcome their
reduce uncertainty which are facing by business organization.
CONCLUSION
From the above information, it has been concluded that international strategic alliances
are very excited implementing strategy in order to accomplish their goals and objective in the
international market. To changing their surrounding, it is important that understanding their
strategic alliance in the marketplace and trends which is helpful to introduce some different types
of products and services are launched into a marketplace. When two or more firms are joined
together and they have shared their all the resources, profit, sales, income a distributed to
undertake a particular project which is allowed to firm an individual persons are accomplished
their common goals and objectives which is remaining are dependent on other organization. It
will be allowed that business concern can reach our clients without additional time and capital.
Franchises can search for a new and creativity to enhance their potential customers and provide
the many opportunities to accomplish their goals and objectives in business organizations. It is
an effective method to increase their economy which is used by companies and various demerits
and benefits of a strategic alliances are extend their businesses in a new services to its clients and
launching new products services and job market across the globe. There are various strategies
which is adapted by Ryanair in order to overcome reduce the risk and uncertainty into
international market.

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