International Business: Use of Strategic Alliance in Foreign Market Expansion

INTERNATIONAL
BUSINESS

EXECUTIVE SUMMARY
The report describes the idea of international business, which is founded on the basic that
when a company operates and trades its goods and services across many boundaries and nations,
the firm's operations are carried out in an international business environment. The international
business environment provides businesses with the potential to improve their competitiveness by
decreasing risk and uncertainty, which may be accomplished through collaborating with other
businesses. This type of partnership allows businesses to enhance their performance, which may
help them generate more money, deal with difficulties more effectively, and manage
organizational success. In order to accomplish aims and objectives, the study defines several
business techniques and tactics. The benefits of creating an international strategic alliance are
also listed in the report. A comprehensive study of the global strategic problems and their
relationships with the parties concerned. The study will provide a few suggestions for the firm to
use more appealing approaches in order to attain more success and possibilities.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Identify the use of international strategic alliance in foreign market expansion.........................4
ANALYSIS AND DISCSSION......................................................................................................7
State understanding of motivation behind formation of international strategic alliance.............7
Describe benefits and challenges of international strategic alliance...........................................8
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business refers to the exchange of commodities, services, technology,
information, and capital across national or global borders. Transactions of business operations
including cross-border transactions and activities are required in international business.
Exporting, licensing, franchising, joint ventures, and foreign direct investments are all examples
of ways to do international business (FDI). International trade is the exchange of goods, services,
or resources across national borders between two or more countries (Aguilera and Grøgaard,
2019). An international strategic alliance is a collaboration between a firm and its parent
company that has operations in many countries. A mutual agreement between a group of airline
firms to collaborate and coordinate all commercial activities with the goal of maximizing profits
is known as an airline alliance. Easy Jet is a British worldwide low-cost airline business that was
formed in March 1995 in London, United Kingdom. The company operates local and
international flights on over 1000 routes in over 30 countries. The study outlines the literature on
the use and practice of international strategic alliances as a means for a company to compete in a
global market. The study is based on the identification of numerous motivating factors for the
establishment of worldwide strategic alliances, as well as the benefits and obstacles that partners
experience while working in foreign markets.
LITERATURE REVIEW
Identify the use of international strategic alliance in foreign market expansion
International strategic alliance- An international strategic alliance is a partnership
between a company and its parent company that operates in various nations. International
strategic alliances can participate in a single activity or a mix of activities that can be classified
as licensing, franchising, management services, manufacturing, marketing, supply chain, and
other activities. An alliance is a real example of a form of economic partnership that takes place
over a certain period of time with the purpose of achieving the organization's objectives.
Types of strategic alliance- Joint ventures, equity strategic alliances, and non-equity
strategic alliances are the three basic kinds of strategic alliances (Berger and et.al, 2017). Such
techniques assist businesses in creating value by enhancing current operations, which can assist
in adapting in today's competitive business climate. When it comes to entering a new market, a