Strategic Alliances in the Airline Industry

International Business

EXECUTIVE SUMMARY
The alliances of strategic is an agreement between two organization for the purpose of
undertaking a mutually beneficial projects while each retains its independence. The agreement is
less binding and less complex than a joint venture in which two businesses pool resources are
used to create a separate entity. Strategies are the important planning which is formulated by an
individual for the purpose of running their business and developing the organizational
performance. Whenever organization has decided to grow their functions and activities then it
needs to enter in new market where it can grow its business activities. Furthermore, in strategic
partnerships, the partner companies concentrate on realizing synergistic effects. By integrating
crucial resources and production elements, they hope to boost their economic value and, as a
result, their competitive position. As a result, this feature is directly tied to the above- noted
strategic dimension. A company can be enter in to strategic alliance to expand in to new market
and increase their product line and attaining the competitive advantages. In the airline industry,
strategic alliance between Star Alliance, Oneworld and Skyteam. These are the large size airline
industries that are running their business by offering the different types of airline services which
influence the number of customers and attaining the higher productivity. To run any business
there is need to have proper understanding about market and requirement which can be filled by
providing services accordingly and maintain the higher performance.