International Strategic Alliances in Aviation Industry

International Business

Executive Summary
The project is based on the International market in which the aviation companies are
forming international strategic alliances for gaining the various benefits due to which their
performance, profitability and growth can be increased. But there are various challenges which is
associated while coming into International Strategic alliances. The report outlines the use of
international strategic alliances in foreign market expansion, understanding of the motivations
behind the formation of alliances and benefits and challenges of the international strategic
alliances.

Table of Contents
INTRODUCTION...........................................................................................................................4
Literature Review.............................................................................................................................4
Use of international strategic alliances in foreign market expansion.....................................4
Analysis and Discussion..................................................................................................................7
Demonstrate an understanding of the motivations behind the formation of the selected
International strategic alliance................................................................................................7
Critical assessment of the benefits and challenges of the international strategic alliance.....8
Propose a suitable alternative market entry strategy in your recommendations....................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International strategic alliances means when companies from different regions come
together to run the business and achieve particular goal. It is a situation when companies share
their skills, abilities, resources, risk, capabilities and technology together for fulfilling the
common business goals and objectives (Kazakova and et. al., 2018). The International Strategic
alliances gives access to positive brand awareness it is important for the companies to maintain
layers of accountability so that customers can avail the better benefits and excellent quality
services due to which brand image and value get enhanced. The Companies must maintain a
healthy relationship with the alliances so that they can run the business smoothly without
creating any disputes and issues while working together. The project is based on International
Market in which two or more organisations forms the strategic alliances and share the
management and business together (Jumle and Bhattacharyya, 2020). The report covers the use
of international strategic alliances in foreign market expansion, an understanding of motivations
behind the formation of Firm and critical assessment of the benefits and challenges of the
international strategic alliances. The Chosen Organisation for this project is British Airways; it is
London based company and a founding member of Oneworld alliances. The alliance was
launched in 1999 by American Airlines, Cathay Pacific, Qantas and British Airways.
Literature Review
Use of international strategic alliances in foreign market expansion.
Strategic alliances generally means when two or more than companies come into an
agreement to for producing, manufacturing, sale of products and development of business. There
are various types of strategic alliances they are joint venture, equity strategic alliances and non
equity strategic alliances (Hartmann, 2019). The International strategic alliances mean the
collaborative arrangement between the two Organisations having headquartered in different
Regions. The Firm which are getting into partnership are legally independent after forming of
alliances. The International Strategic alliances can be divided into franchising, research and
development, licensing, marketing, management service, manufacturing and others. The
Organisations that needs wide range of international presence to access the International Market
uses the strategic alliances in order to enhance their growth and profitability level. When
Company comes in a partnership with International Firm it helps in getting access to global