International Strategic Alliances in the Aviation Industry

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
ANALYSIS AND DISCUSSION...................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
Strategic alliance is a kind of arrangement among two or more institutions that have decided to
share their rootage in order to achieve specific and mutual benefit of any project. In this strategy,
the partnered firms are able to work towards the achievement of a common goal.
British airways are a carrier airline company based in United Kingdom. This airline is the second
largest airline carrier company in the world. In this report various international strategic alliances
in order to enter into the foreign market had been discussed along with the understanding of the
motivations behind this formation of joint venture that had been selected by British Airways as
its alliance strategy. Apart from this, the study also described the benefits and challenges that had
been faced by British Airways while involving various partners along with suitable alternative
strategy options that would be able to get advantages after avoiding certain drawbacks.

INTRODUCTION
Internal national business described as the trade of goods and services, resources,
equipments or information across the national boundaries. It includes cross border transactions of
products and services among two or more countries. International business helps organizations in
order to enhanced their revenue generation, decreases the amount of competition, able to better
handle risk through proper management, benefit their firm with the involvement of currency
exchange services and many others (Varelas, S., and et.al., 2019). International business consists
of import and export of products as well as services with the help of licensing facility in order to
send or receive goods and services from other countries or even export to different countries. It
involves various countries rules and regulations in order to legalise the business activities or
complete the whole procedure in highly ethical manner (Williams, 2017).
This report is about the international strategic alliances done by British Airways in foreign
market expansion along with the understanding of the motivation behind the formation of
selected strategic alliance. This study will also highlight the concept of benefits and challenges
faced by them along with recommendations for alternative market entry strategy.
LITERATURE REVIEW
As per the view of Zhang, (2018) alliances is very old and traditional concept as its usage
always been a part of the social and political structure. Usage of alliances is a strategic business
tool because it helps the firms to sustain or even retain their image within the market space.
International strategic alliances are typically described as collective arrangement between
organizations that are headquartered in assorted countries. Domestic partner firms remain
lawfully self-directed after the formulation of confederation and the association affiliation is
comparatively imperishable. World-wide strategical confederation can be classified along
aggregate conceptions. First dimension is founded upon the types of actions of cooperation;
planetary plan of action connection can be divided into concession, permit, demand problem
solving and evolution, industry, management services, merchandising and some another. An
organization can engage in either of the activity or in combination of strategies. Second
dimension is founded on the amount of partners concerned as the worldwide plan of action
alliances can be multilateral or bilateral. Third dimension is based upon the nationalities that are
involved as it defined as the collective arrangement between firms out of one is headquartered in