International Business: Strategic Alliance for Expansion

International Business

Table of Contents
INTRODUCTION...........................................................................................................................4
Literature Review............................................................................................................................4
Analysis and discussion...................................................................................................................7
Motivations behind formation of international strategic alliance................................................7
Benefits and challenges of strategic alliance...............................................................................8
Market entry strategy...................................................................................................................9
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

Executive Summary
International business refers to trade of products in other countries. For expansion of an
organisation strategic alliance is being selected by managers so that they can easily in new
market. There are many problems which is faced by a company while expanding business in
other countries. Strategic alliance means an agreement between two organisations to generate
more revenue. The main aim of managers behind strategic alliance is to enter into new market
and provide good quality products to customers. In report, literature review is described in which
strategic alliance in foreign market expansion and its importance in development of company.
Motivations behind formation of selected international strategic alliance is discussed and its
benefit in growth of company. Further, critical assessment is being done of benefits and
challenges of international strategic alliance is discussed. Strategic alliance helps in expansion of
an organisation and it is beneficial for partners who are involved in it. Suitable alternative market
entry strategy is described and some recommendations are given so that companies can make
better plans. It will help in generating more revenue and good image will be created in other
countries also.

INTRODUCTION
International business refers to trading of goods and services in other countries and it is
beneficial for growth of company. This will help in expansion of growth and managers should
take necessary steps so that they can generate more revenue (Aguilera and Grøgaard, 2019).
Strategic alliance means an agreement in which two companies to earn more revenue and
resources to undertake a specific project. In report, literature review is discussed which includes
use of international strategic alliance in foreign market expansion. Motive behind formation of
alliance, benefits and challenges of international strategic alliance to selected partners.
Recommendations are provided to enter in new market and what strategies should be made to
build good image in market.
The report includes, strategic alliance of sky team is discussed and it has 19 members,
working together, connect with many people and provide them good services. Company offers
services of any alliance, it has easy and efficient transfers, having opportunity to generate more
revenue. All partners are earning profit and it will help in building good image in minds of
consumers. There are many job opportunities available and they can expand their business
(Bahoo, Alon and Paltrinieri, 2020). Sky team airlines has 19 member and provide services
worldwide, with more flights and there are many flights.
Literature Review
International strategic alliances in foreign market expansion
An alliance is regarded as an agreement that several airlines make to pool their resources.
This move is made in order to gain greater ability to be competitive to other airlines.
According to the views of Hartmann (2019), strategic alliances prove as valuable
instruments for the organizations that aspire to make an entry into new markets. There is a
higher incentive available for the firms that are in competition in the global industries. As a
result of this, internationalization is accelerated at a faster rate. In this way, strategic
alliances are extremely useful for the organizations that compete globally. As per the views
of Mamédio and et.al., (2019) strategic alliances can be used by the companies that aim to
widen their international presence so that new markets can be accessed. It can be analyzed
that with the help of international alliances, organizations are not only able to access global
markets, but they are also enabled to improve and provide strength to their competitiveness
by leveraging the resources of the partner.