International Business: Strategic Alliances for Foreign Market Expansion

This report discusses the use of international strategic alliances in the context of foreign market expansion in the field of international business. It explores the benefits and challenges of using strategic alliances, the criteria used by airlines in partner selection, and the strategies employed by British Airways for global expansion.

International
Business

Executive Summary
Below mentioned report helps in the evaluation of international business as it is founded at
various of organization wants to be maintained long-term sustainability at the old market place
and want to achieve success. For the purpose of improving their trade operations in other foreign
countries, it is required to adopt various specific strategy is a so that they can deal with the
trading mechanism along with the consideration of other foreign trade. It is found very
challenging to move from domestically to internationally for an organization. As it leads to the
creation of various uncertain situations which make an essential to adopt any specific strategy to
come out from that challenge and expansion of business can be done in a better way. The
purpose of this report is to use the international strategic Alliance in order to expanding the
business in foreign market with the discussion of various special consideration which implies
motivation to the employees of Organization in case of international strategic alliances. This
report also helps in identifying the various benefits and challenges which and Organization
experience in the context of international business alliances. It also involve of various benefits
which make the position of an organization strong. Some of challenges also creating some issues
for the strategic alliances. This report also helps in examining that specific consideration which
is related to the new market entry is a and offers an appropriate strategies which include import
and export franchise is licensing joint ventures and many more. Search strategies which are
given above provide advantage to the organization in order to improving the operation in the
foreign countries in an effective and efficient manner.

Contents
Executive Summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................2
Literature Review.............................................................................................................................3
International strategic alliance in airlines in foreign market expansion.................................3
Motivation behind the formation of international strategic alliance......................................4
Criteria that is used by Airlines in the partner selection process...........................................6
Analysis and discussion...................................................................................................................6
International strategic alliances as an option to foreign market expansion............................6
Benefits & challenges of using international strategic alliance in foreign market entry.......7
Suitable alternative market entry strategy..............................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
In this modern generation every business want to expand their business in global market and
wants to work all around the world for the purpose of improving the market share of organization
in order to establish a strong position of organization in the Global market effectively. Below
mentioned report is based on aviation industry which is doing business in domestic and
international levels for the purpose of gaining the benefit of customers. If any organization want
to do international business it is necessary for them to create some specific activities and
strategies which help them in working in international market. Along with this it is also
necessary to take care of some specific facts which are related to the customer Road laws
external environmental factors and skills about the aviation industry. The aim of preparing this
report is to discuss about the British Airways international business which was founded in 1974.
Its headquarter is located in London United Kingdom. This international airline organization
have a good brand image as it is doing their operations in various locations. This report include
the critical literature review which is going to discuss about the international strategic alliances
in the foreign market expansion. Along with this it is also beneficial to determine about the
specific understanding a about motivation behind the formation of British Airways. At the end
this report also include a specific analysis which helps in the discussion and evaluation of
various benefits and challenges of British airline with the involvement of partners.
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Literature Review
International strategic alliance in airlines in foreign market expansion
According to Michael Pitt (2021), International strategic Alliance can be considered as a
field of airlines which believes in collaboration of other elements and activities which are
considered as a facility management industry. International alliances are effectively following
various legislation and economic situations of a foreign market by the use of a partnership and
various other activities. From a recent report it is analyzed that almost 500 alliances in the
context of airline industry are established often. Current analysis also created for the purpose of
filling the gap of knowledge when they are facing Mary's difficulties incorporation academic San
functional assessment, it was very difficult to maintaining a strong partnership relation which is
very useful in the specific arrangements which are related directly or indirectly to the
organization in order to sharing the effective information among more than two partners so that
they can support them. Commercialization can improve if a spatial partnership among the two
companies can improve. Along with this if they generates a special value of the organization, it is
also beneficial for them. Research and development in the alliances in various multiple partners
leaves to the maintaining of spatial information resources which is beneficial for the success of
organization. From the last few years it is also found at Radio FM activities and functions which
are undertaken in the context of airports are becoming more strategic. Functional management of
airline industry plays an eminent role which helps in maintaining the airports out sources and
generates a special functional management contracts professionally. In order to maintaining a
special creation, FM management network make all the consideration of Airports and Airlines.
Dear network which is very helpful in collecting the information can be defined as a specific
series as it is beneficial in maintaining the permanent link among the organizations. Along with
this we can easily ourselves the networking of airlines. If any organization want to maintain a
fluid structure they have to spread a specific value and maintenance of specific partnership is
necessary.
According to the Thomas MacAvoy and et. al., (2008), it is explained tattoo expansion in the
four and market of British Airways it is not an easy task they expansion in the foreign market
British Airways is not an easy task. They had faced to various critical problems. They are
required to develop a coordinating team which helps in facing the critical situations which are
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related to the management structure and helps in maintaining the growth of new announced
alliances. The team members from various countries get together and generate a specific
blueprint which present the seniority Management by addressing the various issues which an
organization is facing a for the foreign exchange market alliances. For the purpose of making
structure of a global strategic alliances it is getting important for them to to maintain a
motivational level for their employees so that they can motivate towards the organization and
helps in maintaining all the information which is help 4 the foreign market expansion. Reach
Wilson of the US air has presented a proper cooperation with their four team members by
exchanging some specific information which is very useful and beneficial for the organization.
By the implementation of that initiated strategic Alliance is considerations between British
Airways and US air.
Motivation behind the formation of international strategic alliance
According to the Peng Mike, they had discussed in informal institution centre on the basis
of other collective norms which are supported by the normative and cognitive pillar. When any
organization plan for moving to the another location, it is necessary for Diamond to analyse old
criticism and pressure. They are required to making a collaboration with many other companies
which may help them in protecting the brand image at the whole market place. They are required
to first Li to the target market and then make a strategic plan according to them which leads to
the the full to suit by the international market. After this the organization have to search new
opportunity available in the market. They are required to use their own resources and exploit
exhausting resources a. The main purpose of exploitation is it to do the improvement in the
productivity and effectiveness of the current employed capital and assets with the specific
standard. When both the company is included with size in order to integration levels also become
Hai which is helpful in maintaining the specific control on the operations. The spatial difference
among the integration and the degree of control is helpful in making the motivation for the
formation of strategic alliances. It can become a main concern in the spine to maintain our
special growth of their partner's and maintaining specific consideration related to the manager
which is helpful in providing a advantage to the competition. For the same purpose they are
required to grow international market. The organization can make special International alliances
with the help of licensing agreements joint ventures cross shareholders and cooperative
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arrangements. It is helpful in motivating the company is rather than taking a risk and wasting
time in the investment of a massive amount of money in other practices.
According to the Bachelor Thesis (2008), revaluation of the specific purpose of strategic
alliances a main different for the situation throughout the past many years. It is founded at
various of Organization established alliances only on the basis of their external situations which
affect them in various ways by sharing a specific motive. Below mentioned are some reasons
which should demonstrate the specific understanding and motivation behind the international
strategic alliances and why people initiated to establish International alliances:
 Opportunities to enter into new international market: It can be considered as the reason
and also a motivation as it is behind it to establish a international strategic Alliance.
International alliances believe always enough expansion of their business across the hole
world and also they want to deal with various Nations. With the help of joint ventures
branches joint partnership manufacturing they can reach in new markets also by using
this consideration they can grab various new opportunity by the strategic alliances.
Development of complete organization include the specific complementary expertise
which work with the local areas and help in the expansion of business in foreign
countries as it is important to to analyze the various impact of political and region on the
operations of business organization. Strategic Alliance also helps the international
business in maintaining all the consideration of new entry is. British Airways are
maintaining spatial ability and capability in order to operating the business operations
more security. Airline had maintained multinational resources and subsidiaries before
entering the new market. They had also selected various partner so that they can easily
establish their Organization in new location. It is also found that British Airways are
required to do collaboration so that they can build a strategic partnership for a specific
purpose.
 Maintain competitive position: In order to maintaining an effective position internationally,
it is required for organization to analyze their competitive position currently. If they wanted
to penetrate their domestic market in to foreign countries they are required to do partnership
with various foreign companies. It also leads to the increase in the market share.
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Criteria that is used by Airlines in the partner selection process
According to Marco Carbajo (2018), it is founded at maintaining a partner selection process
is necessary as it is helpful in managing all the ethical social legal and economical consideration
in the context of any business organization. Partnership is found as a best method for the
expansion of business but it is not necessary that every business organization get success in the
context of partner's. It is became an essential to conduct the research and development process in
order to to make an effective identity right partner for the expansion of a foreign market. In the
context of British Airways the manager has a considered a specific criteria in order to selecting
the appropriate partner for the business organization. British Airways has been taken from
consideration as they are important in the selection process of partners so that the organization
can maintain their operations in the foreign market in effective and efficient manner. British
Airways has identified value a specific criteria which can be considered for the selection process
of partner. Sum of expansion in the context of foreign market include passion towards their
business operations create effective business network improve effective creativity and shared
sem vision. British Airways add required all these criteria in their partner in order to effectively
proceed the expansion of a foreign market and maintain a successful business operations together
them. This act of business organization help the British Airways in the improvement of their
growth in the market and other foreign countries. In the airline industry British Airways are
considered as a famous in United Kingdom as they are providing high quality of facilities to their
customers by maintaining a specific position internationally. Airlines are continuously focusing
on the expansion of their business operations in the foreign market by doing collaboration with
the right partner in order to making more profitability and gaining competitive advantages.
Analysis and discussion
International strategic alliances as an option to foreign market expansion
For the purpose of targeting new audience and reaching them in an effective manner it is
the main concern for an organization which leads to the improvement of business operations and
conducting of various activities which are related to the Business expansion in an effective and
efficient manner. Global footprints plays an important role in the improvement of organization
which is helpful in the strategic partnership. For the purpose of making organization more
profitable, the technique of foreign market expansion can be found as best as it provides strength
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and improves the sustainability rate of organization. British Airways are considered for some
strategies which are very beneficial for the foreign market expansion like a Alliance options. It
leads to the gaining of various techniques in order to establishing a business in the foreign
market and taking care about the legal and ethical considerations. In addition to this it is founded
at maintaining a single local Airlines is very essential as it helps in creating an effective position
and maintaining a good performance in the context of international competitors. The
organization is also looking for the use of multiple local alliances in order to enter the effectively
in the new market which is beneficial for local partners and also International partnership. Boat
single Global alliances as well as multiple Global alliances are considered as the main strategy
which is identified the British Airlines in order to maintaining the effective position in the
foreign market. All of these strategies are important in creating a specific position at the market
place for an organization in order to effectively attract the international people and retain them in
the business operations. British Airways are constantly improving their operations so that the
organization can also improve the growth of market rate as compared to Rivals.
Benefits & challenges of using international strategic alliance in foreign market entry
Benefits
 Utilise supplementary services: It can be considered as a advantage of international strategic
alliances as it helps in maintaining the specific position so that they can successfully operate
their operations. The organization are required to maintain a specific key skills and
competencies for the purpose of surviving internationally. Partnership is helpful as it helps
in maintaining the services in organization without the organization can lose their capability
is in the new field.
 Identification of new markets: For conducting operations in a business and enter into a new
alliances, strategic alliances are beneficial in creating automatic understanding about market.
The forms who has gained franchises include no leverages a to enter with a new brand in the
new market.
Challenges
 Selection of right partner: It ease of use and important challenges for organization to
analyse about the initial in order to choosing the right partner otherwise it can create a use
challenges in the content of international strategic alliances. If any organization select any
room partner it leads to the wrong position of the company at new market place. It may also
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result in the damage of brand image of the organization. So it is required to British Airways
to pay more attention in selecting the right partner for international business alliances.
 Build more trust and honesty: For the purpose of creating trust and honesty they are
required to do operation in the context of international strategic alliances. Organization is
responsible to take care about their partners and they also try their best in building strong
relationship with them which leads to the establishment of Trust among them. If this factor
get avoided It may help in improving the critical situation for the organization and create
various disputes in the business plan.
Suitable alternative market entry strategy
 Export import: This strategy can be said as most prominent strategy which is used to enter
into a new market. This is strategy helps a lot in importing raw materials maintaining
external operations Into The Other foreign locations and semi furnished goods. Such kind of
strategies are not required any specific coaster for the installation of a business. It only
required or specific contact between the importing and exporting companies.
 Joint ventures: This strategy leads to the creation of a specific partnership among two or
more companies which are dealing with similar products in a similar industry for stop it also
leads to the the formation of a separate business is by all the parenting partners which is
helpful in collaboration of these resources and capital in order to obtaining a specific goal so
that they can work collectively which helps in reducing the competitive level. This strategy
is helpful as it is beneficial in maintaining the international strategic alliances in order to
gaining more profit in the foreign countries.
 Licensing: this is strategy is beneficial as it has think transferring and sharing the authorities
and business rights to the organization. This strategy is not required any huge amount of
capital as it is the positive point of licensing.
 Franchising: It is a mostly similar to the licensing strategy but it allows a little bit
difference among both of them. Franchising allow any organization to use their name in
against of P or a payment. It is an essential part for the organization to understand the
requirements of target market and evaluate the cultural consideration so that they can fulfill
the requirements of customers.
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CONCLUSION
From the above report it is concluded that each and every organization which is belong to
any industry have a desire to improve their business operations in order to gaining more profit.
This report is helping in maintaining all the considerations of the international business by
highlighting the various strategies methods and resources which are essential for an organization
for the purpose of conducting business internationally. In addition to this it also included various
International strategic alliances along with their used for the foreign market expansion. There are
various techniques and strategies which can be considered as helpful in the improvement of
foreign market expansions such as single local alliances single global alliances multiple Global
alliances and multiple local alliances. These strategies are important in maintaining a specific
position in a new market in order to improve the motivation level of organization which in order
to maintaining all the concentration of international strategic alliances. There are also found that
benefits and challenges which affect the the performance of international strategic alliances for
organization. It has also been found that there are various benefits as well which an organization
analyser as it provides various opportunities to the expansion of business.
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REFERENCES
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