International Strategic Alliance in Foreign Market Expansion

This document provides a comprehensive overview of international strategic alliances in foreign market expansion. It covers the motivations behind their formation, benefits and challenges for the partners involved, and recommends suitable alternative market entry strategies. The document also includes a literature review and analysis of the topic.

International Business

Executive summary
The international strategic alliance helps together gatherings to efficiently and professionally
attain the exact goalmouths and objectives of the company's management. The companion
shaped a new joint group. The administration is procurement wealth from others. Associates are
frequently called agreement relations. All features of the strategic alliance are the similar as the
respite of the collaboration. Play a key part in establishing feasible alliances, the greatest
problematic task of which is to grow the strategic characteristics of the alliance. This is hard due
to the need to found supplies for dissimilar management cultures and performs.

Contents
Executive summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Literature review..............................................................................................................................4
Review of the literature related to the use of international strategic alliance in foreign market
expansion.....................................................................................................................................4
Understanding of motivations behind the formation of international strategic alliance.............5
Benefits and challenges of international strategic alliances selected to the partners involved....6
Suitable alternative market entry strategy in recommendations..................................................6
Analysis and discussion...................................................................................................................7
Review of the literature related to the use of international strategic alliance in foreign market
expansion.....................................................................................................................................7
Understanding of motivations behind the formation of international strategic alliance.............8
Benefits and challenges of international strategic alliances selected to the partners involved....9
Suitable alternative market entry strategy in recommendations................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International strategic alliance is referred to the agreement of a contract between two
companies for more to corporate and co-ordinate with each other. this agreement is done with the
purpose of development, manufacturing, and sale of product and services within a business and
to meet organisational goals. in this report the organisation X and Y are taking together as per the
key sources, core capacity and competence to create environment in designing, producing and
distributing of the products and services (Ahen, 2021). the organisation which his taken in this
report is Oneworld. it is an airline alliance which was founded in the year 1999 and is having
headquarters in New York, USA. This alliance is started for objective to be first choice airline
alliance in the world's frequent international travellers. This includes 14 members airlines these
are: American airlines, British Airways, Iberia, Japan airlines, Qatar airlines, Alaska airline, Sri
Lankan airlines etc. These airlines operate fleet of 3,296 aircraft and serving about thousand
airports in 170 countries. it is caring over more than for 90 million passengers in a year. it is
considered to be third largest global airline alliance in terms of carrying a passenger. This
international strategic alliance helps both partners in attaining their business objectives and
targets. in this report there is a literature review about the use of international strategic alliance in
foreign market and understanding of motivation behind formation of international strategic
alliance. the challenges of international strategic alliance face by partners. than it consists of
analysis and discussion about this and at last there is a recommendation made.
TASK
Literature review
Review of the literature related to the use of international strategic alliance in foreign market
expansion.
According to views of Wang, and Gao, (2021), many governments choose to execute on a
world-wide scale and arrive the transnational arena of this field, anywhere they can have
multiple options, and choose or select a longer term to income in the management business
(Campbell, and Doshi, 2021). The internationalization method can be called numerous trends in
the creation and management of transactions. The company can reduce the risk factors connected
to the types of items linked to the company. With the expansion of the international banking
sector, the financial transactions and foreign trade of multinational companies have been rapidly

maximized. The criteria for the expansion of the two areas and the number of mergers and
acquisitions of outside banks and the number of acquisitions and mergers of foreign banks and
outside separations have been determined. Internationalization is the big driving force part, it
will principal to the rudimentary direction of the tendency is to increase the number of
management operations, operating according to their country of origin. Through the form of
internationalization, low-level business barriers conducive to organizational performance.
Because it is also known as a significant feature of commercial or a global planned term for
business, it is related to business changes in the most real and effective way (Degbey, and et.al.,
2021).
Using the form type, multiple association sections will let admission to key terms of the
services and resources of additional organization's terms related to the association, and will let
admittance to the skills and resources of another organization to adapt the modest management
action plan with the same efficiency. The important element of the partnership firm part is
created as an actual act plan to eliminate or reduce the number of services and resource
differences found with the same efficiency in the world-wide marketplace. By emerging a
strategic association relationship, you will deliver a period of time to gain novel market shares to
maximize the display part, to stimulate research and development, industrial and advertising
worth of the cost-value exchange period, and reduce commodity/commodity line filling. And
acquire new skills equally efficiently in the management business.
Understanding of motivations behind the formation of international strategic alliance.
According to Jaidka, (2020), the motivation behind the formation of Oneworld
international strategic alliance is the diversification of the organisation business (Dell'Angelo,
and et.al., 2021). In order to found the outdated part of international commercial in the
marketplace, entrepreneurs have applied various action plans. Because the period motivation
mentions to the shape of business motivation. The transnational arena of marketplace
development is moving towards a single development through alliances with key world-wide
containers. How to take risks and left-over period and raise large sums of money in the financial
part to exploit management efficiency (Motivations behind Strategic Alliances and Joint
Ventures across different phases of the Industry Lifecycle, 2020). So, they can be share of the
marketplace they need to enter, and the basic way thereafter is to part an important piece of

information, skills, and experience to get the most marketing aids in the world in the most
efficient way.
Benefits and challenges of international strategic alliances selected to the partners involved.
According to Brandon, (2021), the form of profits and challenges of international strategic
alliances to participating associates. Strategic commercial alliances can be very conducive to the
development of business organizations, and deliver supplementary facilities for existing
alternatives due to the positioning and prospects of partners, providing a possibility to maximize
the appearance of the brand. Since there is a benefit in managing the business, such as the use of
additional facilities, these facilities are known as the most advantageous part of the occupational
and can provide consumers with various opportunities (Galvin, Tywoniak, and Sutherland,
2021). The alliance enables the company and its staffs to deliver amenities concentrated in the
form of particular amenities equally efficiently. It too upsurges the visibility of the brands, which
will have chances in the business. Because they too have many variations in their commercial to
contract with various possible challenges. It describes how you encounter elementary challenges
in your business, such as selecting suitable applicants that may cause damage to the business,
because you will not be bright to donate to the growth of management and will provide devotion,
faithfulness and agreement to the commercial organization level (Global Strategic Alliances
Advantages and Disadvantages, 2021). Growth of a mutually alliance is too known as the
challenge of incoming a strategic alliance to safeguard that commercial organizations have the
key compensations of equal effectiveness and efficiency. This is a significant part of
understanding planned commercial alliances, which may be another step for growth and
marketing companies. It will to maximize product cognizance and services to enter new market
areas and deliver good auxiliary facilities for your consumers, but here are several risk issue
areas that will comprise relationships that can be expressed equally efficiently.
Suitable alternative market entry strategy in recommendations.
According to Sharma (2021), organizations can effectively arrive foreign markets in a
variety of ways (ALTERNATIVES FOR MARKET ENTRY STRATEGY, 2021). Since the
marketplace access action plan will be oriented towards straight commercialization, this may be
the greatest appropriate act plan on the market, and it is real in additional way, that is, it needs to
procedure a part of speculative cooperation, and the additional can well obtain a manufacturing
license (Healey, 2021). Because the optimal of the act plan involved in the elementary

orientation method is affected by many factors. It will comprise issues that have an influence on
the selection of the inventory plan that will maximize the worth of the cost. This is known as
maximizing sales from these standards. The period marketplace admission strategy will mean
straight export, which is the elementary sales part of the market that will use resources.
Numerous types of businesses have formulated their sales plans and participated in the
management of their business on their behalf.
Second, certifying is a relatively knowledgeable plan of act in which the management
business transfers its correct to use goods and amenities to additional departments in the arena. It
is called the basic act plan method, particularly the versatile action strategy method, if the
purchaser with a relatively big market part license needs to arrive efficiently and professionally.
The license can be used for commercialization or demonstration (Hendrikse, 2021). They take
specific procedures for rapid market expansion to maximize and increase management output
and success. The franchise works clearly for the commercial management that plays a main part
in the corporate. On the other hand, partnership and coordination are also an important part of the
management function and the operation of the company in the company. The form of association
is in the form of several sections, and the management marketing area organized by this will be
differentiated in more areas. In the decision-making marketing arena that deals with multiple
business deals, strategic alliances are also indispensable. The corporation approach is often
called part of the act plan, in which the market cooperates with various philosophies which can
be society and business. Additional feature of buying a business can be called recurrent for the
local part of the current business. This is due to the fact that trade agreements have considerable
market share areas, which are substitute competitors for the commercial in the marketplace.
Analysis and discussion
Review of the literature related to the use of international strategic alliance in foreign market
expansion.
 Multiple local alliances : It is called the running business and contracts with
management purposes and processes in many other areas of the market area (Herath,
Senaratne, and Gunarathne, 2021). As the company's foreign flying divisions are entering
feasible market sectors, these marketplaces are the main drive of the resident partner

channel. The elementary state in this type of preparation is that various forms of relations
must be dealt with.
 Single global alliances : It is known as the elementary production source that follows a
set of basic products how to incorporate a single arena of external flight facilities into the
business so successfully and proficiently. It is a product type with superiority from world-
wide sources.
 Single local alliances: Management business can find alliances with partners’ local
terms, which can accelerate the novel situation in foreign markets. The elementary goal
of novel applicants in the form of international or transnational selling is to
simultaneously resolve the outlay horizon of their assets, applications or products with
partners in the sectors that provide the main basis of information for their activities
(Kowalski, and Mackiewicz, 2021). And numerous methods of arithmetical supply.
 Multiple global alliances : It is called a form of alliance with additional force of the
similar scale and marketplace field, and the cross-sectional part in foreign countries
nearly exists in the running business that will become a part of the multiple Global
strategic alliance.
Understanding of motivations behind the formation of international strategic alliance.
The management of business use in the strategic alliance in some of the following manners
that are discussed below:
 Scope and speed of orientation in the activities of a business are referred to the important
part of the field.
 Effectively obtain multiple balanced benefits in the global market.
 It is advisable to maximize marketplace diffusion among other companies and can be real
and efficient over an extensive period of time.
 Maximize the competitiveness of nation-wide and global markets.
 Promote product growth by sharing business skills, knowledge and experience, etc.
 Gradually terminate new business opportunities for new products and new facilities to
make them extra feasible in the biosphere market.
 Expanding the fundamental part of market development so fast in the marketplace.
 They make the most of the exportation series.
 Expand according to your needs (Lee, 2021).

 They developed a new management department.
 The way revenue advances with the cost value.
 They effectively created change and entered a new market form.
 They will likewise improve the way cash flows.
 They can also alteration quickly.
The elementary main term of dynamics after maximizing world- wide strategic alliances will
not only recover profitability, but as well effectively improve efficiency. Because there are so
many issues that drive commercial performance (Peng, 2021).
 Rivalry among competitors is so operative that the finest will stay in the market
extensive.
 The marketplace is the place anywhere the main lively phase changes as quickly as
possible in the company in order to be successful.
 They have a high method of consolidated division of running affairs.
Benefits and challenges of international strategic alliances selected to the partners involved.
How strategic alliances within the company describe the complete role within the company
with appropriate management and capitals for a more important tenure in terms of profitability
and efficiency in organisation. The advantages of global strategic alliances are:
 Gaining new client base and adding competitive skills: It helps in increasing the new
customer and client base in the business organisation. It helps in dealing with
management with various online and offline techniques.
 Reduce risk: This will decrease part of the risks and problems in commercial
management by placing elementary industry oriented constraints on the way of the
association.
 Gain new resources and making improvement in existing resources: They can
upsurge their capitals and will likewise improve their resources (Puente, Maceiras, and
Romero, 2021). existing capabilities in the enterprise by appropriately performing
purposes and activities as efficiently and effectively as in the market sector.
 Level of industry is ups and down: This is a business monetary series that includes
many ups and downs through the dominant corporate method being oriented in
organisation.

 Creating different sources of additional incomes: It also qualifies as an additional basis
of income in the corporate by execution the same purposes for others and obtaining
profits from the parties.
 Building valuable intellectual capital: It generates a great deal of valued intelligent
wealth for many other areas of business through in which it is dealing with various forms
of period.
Challenges in international strategic alliances are discussed below:
Since they too take many chances to resolve many possible difficulties. This classifies an
important problem in the corporate (Rob, and Cattaneo, 2021). For instance, it can be detrimental
to the business because selecting the true applicants does not endorse management growth and
results in a convinced near of pledge, devotion, and constancy in the commercial group.
Structure official alliances is recognised as being able to engage in strategic alliances, and allows
corporate organizations to achieve great benefits efficiently and proficiently. This is a significant
fragment of sympathetic planned business alliances, and can be added stage in business
expansion and selling. It likewise maximizes product cognizance and technology, enters new
areas of the marketplace and delivers customers with outstanding auxiliary equipment, but there
are some risks such as relations. You can build the scheme capably.
Suitable alternative market entry strategy in recommendations.
In the pitch of commercial publicising, which grips numerous business dealings, strategic
alliances are also essential (Sulich, Sołoducho-Pelc, and Ferasso, 2021). The collaborative
method is generally careful share of the business strategy, letting the market to co-operate with
diverse societies and corporate cultures. Extra feature of contracting companies can be branded
by the conventional situation of the local divisions of the current business. Trade contracts have a
big marketplace portion and are alternative candidates for businesses in the market.
CONCLUSION
From the above it is concluded that strategic alliance is a sort of valuable device that require
to enter in a new section of market. they are called as multi-purpose of a managerial possibility
that is to be unsure, high and marking rates to the market are important. In this case, the strategic
alliance has created a positioning method that will deliver many parts of the commercial. Market
access is too a significant feature of handling and coordinative business processes and

management functions. The elementary orientation form of the strategic alliance will be
contingent on the strategic goals of the operating enterprise and its planned goals. This also be
contingent on the shape of the novel market segment, the basis of the advantages and difficulties
of corporate management in the competition with this floor, and the guiding value of the market
segment is provided with the same efficiency. In this case, resident alliances will aid provide
marketing knowledge, which will equally effectively promote the delivery of products and
services.

REFERENCES
Books and Journals
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social mobilization. Ecological Economics, 184, p.107004.
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megaproject alliance contracts: The interplay between governance, trust and
culture. International Journal of Project Management, 39(4), pp.394-405.
Healey, D., 2021. Power politics and the Labour Party. In Democratic Socialism in Britain (pp.
161-179). Routledge.
Hendrikse, R., 2021. Making sense of Orbánistan: Unpacking Europe’s neo-illiberal vanguard:
The retreat of liberal democracy: authoritarian capitalism and the accumulative state in
Hungary, by Gábor Scheiring, Cham, Switzerland, Palgrave Macmillan Challenges to
Democracy in the 21st Century, 2020, 367 pp.,€ 93, 59 (hardcover), ISBN 978-3-030-
48751-5;€ 74, 89 (eBook), ISBN 978-3-030-48752-2.
Herath, R., Senaratne, S. and Gunarathne, N., 2021. Integrated thinking, orchestration of the six
capitals and value creation. Meditari Accountancy Research.
Kowalski, A.M. and Mackiewicz, M., 2021. Commonalities and Differences of Cluster Policy of
Asian Countries; Discussion on Cluster Open Innovation. Journal of Open Innovation:
Technology, Market, and Complexity, 7(1), p.21.
Lee, T., 2021. From nuclear energy developmental state to energy transition in South Korea: The
role of the political epistemic community. Environmental Policy and
Governance, 31(2), pp.82-93.
Peng, M.W., 2021. Global strategy. Cengage learning.
Puente, S.N., Maceiras, S.D.A. and Romero, D.F., 2021. Twitter activism and ethical witnessing:
Possibilities and challenges of feminist politics against gender-based violence. Social
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Smith, D., 2021. The Defence of the Realm in the 1980s. Routledge.
Sulich, A., Sołoducho-Pelc, L. and Ferasso, M., 2021. Management Styles and Decision-Making:
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Online
ALTERNATIVES FOR MARKET ENTRY STRATEGY, 2021. [online] Available through <
https://www.studocu.com/in/document/barkatullah-university/mba/lecture-notes/
alternatives-for-market-entry-strategy/5527874/view >
Global Strategic Alliances Advantages and Disadvantages, 2021. [online] Available through
<https://brandongaille.com/15-global-strategic-alliances-advantages-and-
disadvantages/>
Motivations behind Strategic Alliances and Joint Ventures across different phases of the Industry
Lifecycle, 2020. [online] Available through
<https://www.slideshare.net/karanjaidkakj/motivations-behind-strategic-aliiances-and-
joint-ventures-across-different-phases-of-the-industry-lifecycle >