International Business Strategy : PDF

International Business

Executive summary:
Aviation industry is that one market which is technologically revolutionised as each one
company within the sector is equally widespread within all around the world. Majorly global
airline market is having its most profitable companies like that of OneWorld, SkyTeam and Star
Alliance. There were many alliance that took place in 1990 that were on global level and
achieving global market coverage in order to meet up need and demand of international
customers. There were formation of many bilateral agreements in early time of 1990s with each
of the airlines interlining, joint fares and coordinating of timing of flights with retention of their
brand identity. Alliance management team is appointed in way of coordinating with executive
body of partnership and then funding of supervision. The function of this alliance will be to
observe all contribution and benefits of members in order to collect information based on
performance of members and then maintaining behaviour of norms with network and neutral
coordination within function of airlines industry.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Relevant drivers of Globalisation that are responsible for formulation of global airline
network........................................................................................................................................1
2. Strategies for individual airline to enter a new foreign market...............................................7
3. Form of joint management used by airline network to achieve mutual corporate objective.10
CONCLUSION..............................................................................................................................12
REFERNCES.................................................................................................................................13
BIBLIOGRAPHY..........................................................................................................................15

INTRODUCTION
Global business expansion is the strategy where firms and organisation enhance their
operations in different countries by following strategies like merger and acquisition so that
organisational productivity and profitability can be increased (Shenkar, Luo and Chi, 2014).
Aviation or air transport industry is the business sector which is dedicated to manufacturing and
operating all types of aircraft. Global air network revolutionised the air transportation systems
world-wide. With popular air networks like OneWorld, SkyTeam and Star Alliance it becomes
easy for airline companies to expand globally in international markets.
In this report an analysis by using precise tools in regarding drivers of globalisation
which are responsible for formation of global airline network will be made. Further it will also
be covering suitable strategies that any airline is using for enter into foreign market. The barriers
will be identified and evaluation of most suitable form of joint management that could be used to
manage these airline networks in order to achieve mutual cooperate objectives will be made.
MAIN BODY
1. Relevant drivers of Globalisation that are responsible for formulation of global airline network
The integration of domestic economy with the world economy is known as globalisation.
With increasing interaction among national economic systems, financial markets, economise of
trade, higher factor mobility and free flow of technology, globalisation transformed the practices
of business organisations and industries. Globalisation drastically influenced every industry and
trade practices incorporating worldwide. It enhances the standards of living, quality of products,
helps in sharing of culture and also increases the national economy of country. Globalisation also
increases the competition among firms as organisations in order to increase their customer base
and brand image tends to establish organisation in different countries.
In 1990, many aviation alliance have been formed in order to meet up the demands and
expectations of international customers. According to Hamilton and Webster, (2015)
globalisation is a process of integrating goods and services in different countries. So there are
many drivers or factors which is leading to globalisation like that of technology or market within
which they are been trading.
As there were three of the alliance which were major including of OneWorld, SkyTeam
and Star Alliance all of these were through formulation of multilateral cooperation and in way of
achieving global market coverage. Star alliance formed in 1997 included Air Canada, Lufthansa,
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