International Strategic Alliances in the Aviation Industry

Business
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Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Literature related to the use of international strategic alliances in foreign market expansion.4
Analysis and Discussion.........................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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EXECUTIVE SUMMARY
Regular challenges generate problems for international airlines to generate better and
expected results and also the value and level of services is reduced. The alliance related with
global airlines link towards formulation of better and effective factors through which United
Kingdom service is improved through implement of strategy for completion of operations in
most visible manner. The alliance member provides different benefits to the companies and it
results both companies or partners are able to accomplish their goals and objectives. International
strategic alliances are also complex to implement and this is because management indicates
towards formulation of economy related alliances and they refer towards accomplish of
ownership and decision-making between two organisations. Joint venture is an appropriate
strategy for two organisations that improve market size and it formulate on basis of mutual
agreements or contract and it is submitted by the organisations under government rules and
company act.
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INTRODUCTION
The term international organisations explicated as the situations in which business
performs production and distribution activities across local boundaries of a country. In simple
terms, international business encompasses the full range of exchange in cross-border activities,
product and service exchange and interchange of resource between more than two nations.
British Airways is selected as an organisation for this report and it is a flag carrier airline of
United Kingdom. The headquarters of British Airways is based on London, UK. Moreover,
report highlights on international alliance within airline sector and also on benefits of
international alliance to accomplish objective of both company and partner. British Airways was
established in the 1974 under the guidance of British government (Boddewyn, 2016).
Formulation of British Airways was done for align the British overseas corporation and British
European airways. British airways were the member of oneworld alliance that was launched in
1999 by the American airlines. The prime focus of alliance is to offer high or peak value in their
service. Also, this aids towards formulating better connection with more than 1000 countries. In
the last, strategic alliance of British Airways currently operates four joint business agreements
and it enable organisation to give more choice to customers.
LITERATURE REVIEW
Literature related to the use of international strategic alliances in foreign market expansion.
According to the Jose G. Vargas-Hemandez, 2014 International strategic alliance is
explained as the collaborative arrangement between more than two organisations and there
headquarters are situated in different countries. The partnership of firms dependence on the
formation of strategic alliances and their relationship which are relatively enduring for
organisations. Within foreign market strategic alliance can be divided into multiple dimensions.
From the perspective of UK airline industry, with formulation of effective strategic alliance
management consider towards engage of foreign partner to achieve high benefits (Boso, Hultman
and Oghazi, 2016). ISA (International strategic alliance) generate international company
cooperative arrangements. Moreover, according to the current market situations this considered
towards formulation of better cooperation between firms that are independent. International
strategic alliance drives about all theoretical perspective and it includes about all transactions
that are minimal for short-term cooperation. It results economic is interchange by organisation
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