International Strategic Alliances in Foreign Market Expansion

International business

Contents
Executive summary.............................................................................................................................3
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........................................................................................................9
CONCLUSION..................................................................................................................................11
REFERENCES..................................................................................................................................12

Executive summary
Strategic alliances relate to the methods of accomplishing one such improved
technique, not quite as much because they allow companies to get access to numerous
marketplaces throughout the world, and also because they assist organizational matters their
own leadership capabilities by using the skills of their allies. Relationship commitment exist
in a range of industries as well as between businesses of various sizes. Organizations develop
alliances for a number of reasons, such expense in production and research, strengthening
market position, and obtaining access to other companies' intangible assets. For this report,
Virgin Atlantic is taken as it provides information about strategic alliance as they alliance
with Delta Airlines with the hope of attaining more success. By this company can easily
expand their business at global market place and also sustain in foreign market for longer
period of time.

INTRODUCTION
International business refers to any circumstance in which the manufacture or
transportation of resources or commodities crosses national boundaries. Globalization, or the
transition to a more interdependent and integrated global economy, expands chances for
worldwide commerce. Such globalization could occur in markets wherein barriers to trade are
lowering and customer demands are shifting. In this context, strategic alliances play a crucial
role in expanding their business as it formed when firms expand their business and core
competencies in the manufacturing, marketing, and advancement of goods and services in
order to achieve a competitive edge in the industry (Collinson and et. Al., 2020). As, strategic
alliances are not a one-size-fits-all solution for every organization and every situation.
Organizations, on the other hand, can enhance their competitive standing, gain access to new
markets, augment important capabilities, and manage the profits and cost of large
development initiatives through strategic alliances. With the help of this, airline firms can
gain benefits such as economic, financial, and managerial development, extension of flight
networks, and increased revenue by utilizing strategic collaboration approaches. Current
project is based on Virgin Atlantic, is a popular British airline established in 1984 as a British
Atlantic Airways that serve their service worldwide with the aim of attaining competitive
benefits. In this context, Virgin Atlantic’s strategic alliance with Delta Airlines which is one
of the famous and truly redefines transatlantic travel. Their partnership can help both
companies in expanding their business at global level and also attain competitive benefits
from its competitors as well. Report will cover use of international strategic alliance in
foreign market along with its advantages and drawbacks. Along with this, motivations behind
the formation of the selected International strategic alliance are also mentioned in this project.
LITERATURE REVIEW
Review of the literature related to the use of international strategic alliances in foreign market
expansion
Companies that will need to expand their global presence in order to enter new
markets might do so through strategic alliances. International cooperation not only allows
enterprises to get access to worldwide marketplaces, but it also boosts their performance by
exploiting the partner's capabilities. This globalization method stems from a desire to build a
business in a foreign country market at the same time, and also an initial desire to ignore risk,
as well as the requirement to learn about only the nationality and marketplace from the base