International Business: Strategic Alliances and Market Entry

This report provides an overview of international business and the importance of strategic alliances in expanding business operations and entering new markets. It discusses the motivations behind forming international strategic alliances, the benefits and challenges associated with such alliances, and provides recommendations for success. The report also explores market entry strategies and their impact on organizational performance. The case study of Ryanair, a British low-cost airline, is used to illustrate the concepts discussed.

International Business

EXECUTIVE SUMMARY
This report gives the study of international business as an international business define
that organization at traded for goods and services across the world in terms to get more and more
opportunity and sharing all resources related to their knowledge and skills and their experiences.
Selector organization wants to expand their business that so that they can improve develop their
profitability and productivity in order to improve their performance and overcome that task and
get more opportunity. This reports covers that various methodologies and strategies so that they
can enter into a market in order to achieve their goals and objectives. There are several
advantages and demerits of strategic alliances and organization to enhance their ability and to
sharing all knowledge and skills that can reduce or decrease cost risk and uncertainty. From the
business organizations, there is a critical assessment for their task of international strategic
alliances which is connected to partners is included with them. There are a few recommendations
of the business organization terms to adopt their new technologies and more attractive study to
get more opportunities and success in their business organizations.

Table of Contents
EXECUTIVE SUMMARY................................................................................................ 2
INTRODUCTION........................................................................................................... 4
MAIN BODY................................................................................................................. 4
Literature review.......................................................................................................... 5
Analysis and Discussion................................................................................................. 8
Describe motivations behind formation of selected international strategic alliance..........................8
Benefits and challenges of international strategic alliance........................................................9
Recommendations....................................................................................................... 11
CONCLUSION............................................................................................................. 11
REFERENCES............................................................................................................. 13

INTRODUCTION
The term international business defines that trade of goods and services are across the
world or a global transactional scale. It involves wide transaction between two or more countries
for distribution of goods and services globalization shifting towards more in independent
integrated global economy which is created a greater opportunity for international businesses
across the borders (Alofan, Chen and Tan, 2020). To enhance their profitability various
organizations who have adopted international business in order to extend their business
organization. For running their business, it is significant that each and every businesses
organization has strategic plans which can be used to provide their right details for right direction
and get to accomplish goals and objectives within a particular time period. To changing their
environment, it is needed that have a proper planning and solution for those problems are arises
anytime. In airline industry, different type of service that is provided by customer which can be
helpful to managing all functions and maintain their performance and their organizational
performance. For this assessment, selected organization is Ryanair is a British low cost airline
industry based on UK which is subsidiary of low-cost airline group of Holdings. It was
established by 1984. It operates more than 400 aircraft with a single 737-700 use a charter
aircraft for a pilot training. It is the largest Ryanair Holdings of airlines which is based on UK.
This report covers literature review of the international strategic alliance, motivations behind
their formation of selected international strategic alliance, benefits and challenges of strategic
alliance and market entry strategy for certain recommendations.
MAIN BODY
International strategic alliance: This term strategic alliance is a very significant part in
business organization in terms to international business (Basco, Calabrò and Campopiano,
2019). It is a term which is collaboration of economic for a specific period of time and to achieve
certain goals and objective of business organization. It is said to be that partnership which is
more than two firms are operating in order to accomplish their goals and objectives which are
most beneficial for their firms. Strategic alliance of organizations is able to share that
information and raised in terms to accomplish their goals and objectives.

Types of strategic alliance:
 Strategic alliance in equity is a concept which is divided by business is want to purchase
or certain equity percentage of the other organization by 40% of equity for firm that
strategy is automatically formed in that organization.
 Joint venture which is formulated when two or more firm are joined together and parents
organizations who wants to establish a new child organization.
 Non-equity strategic alliance when two or more firms are assigned a contract with
connection in order to fulfill their services and their abilities together.
Literature review
From the viewpoint of 'Lando Zeppei' strategic alliance is a very crucial and efficient
model for those businesses that have accomplished their goals and objective in a proper manner
and extend their businesses with other organization (Bjola and Zaiotti, 2020). It is a concept
where two or more organization can operate together and get more benefits related to other
organizations to share all information which are necessary capability in order to overcome or
extend their certain business to get more opportunity. Ryaniair organization which is a airlines
alliances with officially have a partner alliance with this company it is considered that one world
alliance sky team alliance and Start lines in order to extend their businesses. The three of them is
a make connection and maintain a relationship among the various companies in order to collect
too many resources which is standing to be easier. Star alliance is first alliance which is found by
1997 and organization air Canada and Lufthansa are came together in order to extend their
businesses and partnership with De star alliance they can provide their continent towards their
business organizations various members of Star airlines are as follows:
 Air China
 Air India
 Air Canada
 Egypt air
 Singapore airlines

 Brussels airlines
 South Africa airways
Sky team is new resistance which is owned by 2010 the second largest airline members
which are many companies are included such has MEA, Delta, Air France, Air Europe, KLM,
Korean air, alitalia, saudia, Kenya airways (Enderwick and Buckley, 2019).
One world alliance is one of second largest airline is formed in 1998 by American and British
airways. In this strategic alliance, many members are included which is to be represented that
jump in numbers of alliances one world members are as described below:
 Alaska Airlines
 British Airways
 Cathay Pacific
 Qantas
 Qatar
 S7 Airlines
 Srilankan
There are many reasons for organization in order to expand their organizational goals and
objectives to global business alliances (Filatotchev, Aguilera and Wright, 2020). These
organizations have to be easy for formulate strategic alliances in order to enhance their
competitiveness and their formulating of various reasons why strategic alliance they want to get
more success in organization to develop strategic alliances in terms to enter into new markets
and decrease their competition level in the marketplace. This also support their strategies to
divide their respective in terms to economics of scales and Ryanair wants to alliance in order to
clarify their business which was founded in British airways, American alliance Canadian due to
merger with Canada. One world alliance was amended second largest major airlines alliances
and is a concept towards individual airlines and volume of passengers through outsider of
America is 13th member provide streamline relationships their Europe Australia and East Asia
without African days member regional organization wants to connect British airways in terms to
get more opportunities. They should increase their resources to their growing their members and

joint venture strategic alliances and a structure which has business organization to develop their
functions and activities to get more opportunities and improve their overall performance in
organizations. Strategic alliances is effective structure and process in order of their powerful
leadership various kinds of strategic alliances has organization to build their connections among
to organization because due to Brexit in UK every industry related to a line of have a potential
economic impact and migrated work force related to modification rules and regulation and
decided by the new authority. Rihanna was introduced in the airline alliances which are to be
better connecting with travel across their low cost network and it is a low-cost airline industries
(Guild, Grant and Groenendijk, 2020). Ryanair is firm which is known as launch a partnership
with two or more airlines industries to increase their style operational and maintain their
relationship with other firms. In order to increase their effectiveness firm provide large network
of low-cost right with London to get a week report. On the basis of announcement of business
organizations are plan to develop their alliances with other company in order to get their more
opportunity and also enhance their partnership with other airlines organization which will be
allowed to connect more flights and more carrier.
Firm wants to rhymes of one world members to get more opportunity and various benefits of
which is related to world status in a premium status membership. Three categories of premium
status membership with one world Emerald is a highest tier while ruby is lowest and one world
alliance like those other alliances get access to launch other perks on occasional upgrade.
Commercial partner are excited to announce their partnership with open apps as a destination of
Abu Dubai to Europe there are various extension methods adopted by organization or to enter the
new market which is acquisition of joint venture into a more from together at joint and licensing
and franchising so that they can more successful than their firm in a very suitable manner. Star
alliance is the oldest firm in airlines sector which was founded by 14 may 1997 and it is
organization as providing a different range of airline services to their customers who comes to a
different nations and national nation (Jones, 2019). Our purpose is to visit anywhere they can
have to manage the all functions and have a skilled for their team members who perform well to
solve their all issues related to this industry. Following airline liberalization in 90s have face to
rapidly to increase their international demand and their travelers related to variety of destinations
but addition that was unable to meet their demand which is most significant each of organization
to enter market environment and introduce new products and services accordingly. Number of

people are watching that collectively and formulate strategic planning which can be used to bring
their changes in their services uses of aircraft supply service entrance number of people which is
reliable person for all function to conduct market analysis to know that what types of services
which are demanded by customer and most significant for each and every organization to listen
how influence people can get read them to their airline services in formal and informal services.
To increase organizational performance and productivity in competitive environment they needs
and wants of customer are getting changes which is significantly well with services and
determine what are expecting and how they will satisfy with their services (Kekezi and
Klaesson, 2020). The main aim of each and every organization is to sell product or service
which can influence and number of customers are increases towards their firm and their
organizational productivity and profitability should be enhanced.
Analysis and Discussion
Describe motivations behind formation of selected international strategic alliance
Motivations in strategic alliance are in terms to enter their global market that will help to
business to enhance their profitability and productivity and share all skills and knowledge which
is used to accomplish their competitive advantage. To share all accomplishment of goals and
objectives related to research and development, share vision, common goals used in development
for manufacturing a strategic alliances and joint venture strategy are stronger market positions
and identify their strong motives for a joint venture strategy. Alliance motivations is to manage
cost of comparative advantage and provide their increasingly population with them any business
so that they can enter into market (Lee, Chung and Beamish, 2019). Motivation for strategic
alliance in global market place is enter their markets that they can a desire to enter and main
reason behind it to share all knowledge of skills and responsibilities to gain their market. To
maintain competitive advantage in world five major motives for strategic alliances namely such
as creation of transactions, resources evolution, resource information, and discussion strategic
alliances are managed to sharing all knowledge and skills related to this expertise between their
partners as a reduction of risk of cost media such as relationship with suppliers for a new product
services in the marketplace and technology to be developed. Five major’s strategic alliances in
order to increase their organized firm and develop their resources, diversification of resources
and special of resources. Many reasons related to Ryanair which helps to firm that gained more

market share and enhance their competitive advantage to build their economic environment in
relationship with customers. It is also support those businesses to get more access to
complementary resources and strategic alliance a collaborative management in organization.
Various nations which is applied to get a more opportunities and success in order to describe
their talents to some organization to follow some steps and choose their relevant information for
their appropriate partnership in their organization (Liebowitz, 2020). They can share more
values related to market to take decisions and help them to live their partnership in terms to their
impact of a business success.
 Strategic alliances helps firms that they can support their businesses to get more
opportunity in order to accomplish goals and in terms of partnership.
 Firm to get more knowledge and skills related to their customers to overcome those risk
and uncertainty.
 It has organized to get more knowledge and skills which understand their responsibilities
and roles in always take their protection in their upcoming years.
 It is also allowed that business organizations take a praising asset to in order to get more
resources to their partners.
Benefits and challenges of international strategic alliance
Business organization focus on entering a new market in order to accomplish their goals
and objectives and wants to meet their other business in order to get more opportunities and
business success (RATNAWATI, 2020).
 It is also that businesses develop to increase their productivity and profitability in terms
to accomplish their goals and objectives and enter into a market for new product or
services to make them more effective and competitive in marketplace.
 It is also helpful that business organizations are increasing capability in terms to increase
their cash flow and develop their productivity to overcome uncertainty and risk.
 Organization using a strategic alliance to increase their competitive in international
market and their national market.
 Development of market in a very quickly and rapidly way
 Organization helps to accomplish their benefits of a large scale in international
marketplace and increase their scope and speed in firm.

Demerits of strategic alliance:
 Strategic alliance when organization has to go through their joint ventures with other
firms and engage their investments to suitable group of contracts and separate transfer.
Various types of partners in order to maintain their strategic alliance and most of conflicts
are arise because of joint venture to manage their actions of conflicts and among
respective partners (Ribau, Moreira and Raposo, 2019).
 It is also said that a risky from rivalry because there are various organizations that cannot
access their information technology or any different type of business is to strategic
alliances with their partners. In order to adapt more technology which should be
determined more skills, knowledge and experience towards their more cost of
organization strategic alliances and but being cash in an organization hands.
 To share the profit is other variable of organization because their income of organization
is divided into a separate different nation and if they can joint venture is included that
they can divide their incomes or share profits with each other that will help to boost their
economy.
Extensions method in order to extend their firm
Many of reasons related to extension methods which is extend their businesses and it is
adopted by firm in order to expand their international market profitability and productivity are as
follows:
Joint venture: It is a method where large firm are agrees to share the profits with others
form of organization in order to carry out more profitability and productivity.
Acquisition: It is a popular method when one firm acquires to another firm and enters
into a new market which is a major benefit of comparative in order to collect their capability unit
and technology (Rojec, 2019).
Franchising: This is a method where owner or managers of a firm are carry out their
various methods in order to give same services all product to their franchises.

Licensing This type of organization are connected with licensing in which firm or
organization give their permission to another company in terms to their sell their product or
services in same price which is given by them.
Recommendations
As per the above mentioned analysis, it has to be recommended that selected
organizations are given a more opportunities at a competitive advantage to accomplish their
goals and objectives to extend their business in other suitable manner (Vicondoa, 2019). The
recommendation of chosen organisation is as follows:
 It is to be recommended that organization to increase their profitability and productivity
as they were required to adapt their various strategies according to their perception of
customer in the marketplace.
 It is also required that franchising and licensing agreement has taken develop or improve
their organizations are reaching in international marketplace.
 It is recommended that organizations have to develop their potential and identify their
suitable partners to about their potential partner in terms to establish their profits and
relative productivity to accomplish their goals and objectives.
 It is recommended that organizations increase their customer base and meet their
requirements of customer’s needs and wants according to their customer expectations in
the marketplace and effective strategic alliances that they can make changes in proper
strategy (Yap Peng Lok and Chin, 2019).
 It is to be recommending that business organization has to improve their skills and
knowledge to enter some new technology in the marketplace and innovative ideas
through their knowledge to increase their efficiency and effectiveness so that they can
overcome challenges of task which are facing by business concern.
CONCLUSION
As per above mentioned report, it has been understood that strategic alliance is a very
excited implementing a strategy in international market in order to expand their competitive
advantage in the marketplace. To changing their environment is significant to have a proper
understanding about their marketplace and trends they can help to introduce their some kinds of

products and services. When two firms that have to decide they share their resources and their
profits to undertake a specific project is allowed to firm for an individual or entity towards a
accomplishing their common goals and objectives which is remaining are dependent upon their
other organizations. They should be allows their organizations that they can reach by two
customers without additional time and capital. Franchises cause searching for a new and
creativity to increase their potential customers and provide opportunities to date in order to
accomplish organization goals and objective. It is very effective to boost their economy which is
used by organizations. Various benefits and demerits of strategic alliances organization in order
to extend their business new services to consumer and in order to extend their job market across
the world. There are various strategies adopted by Ryanair in order to overcome their task and
enter into global market.

REFERENCES
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