International Expansion Strategy Analysis for Alaska Airlines Business

This report provides an analysis of the international expansion potential of Alaska Airlines, with a specific focus on the Chinese market. The introduction offers a brief overview of Alaska Airlines, its current market position, and its limited international presence. The discussion section argues that China presents the best opportunity for international expansion due to its rapidly growing aviation market, strong economic growth, and favorable legal environment. The report highlights China's large population, strategic location, and business-friendly policies as key advantages. The analysis includes China's GDP, import/export market size, and current exchange rates. The report concludes that expanding into the Chinese market would give Alaska Airlines a competitive advantage, increased market opportunities, and the potential to elevate its operations. The report references several sources to support its arguments.

Running head: ANALYSIS ON INTERNATIONAL EXPANSION OF ALASKA AIRLINES
Analysis on International Expansion of Alaska Airlines:
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1ANALYSIS ON INTERNATIONAL EXPANSION OF ALASKA AIRLINES
Introduction
Alaska Airlines is one of the major airline company of America, founded in 1932. And have
its headquarter in Washington. The company is registered as the United States’ fifth largest airline,
having a total fleet size of 330 and has about 116 destinations over the world, including
destinations such as Alaska, Hawaii, Canada, Costa Rica and Mexico. It also has a major presence
in Russia. As 2017, the company has a total assets of $10,740 million (www.alaskaair.com, 2019)
Discussion
Alaska airlines is one of the major airlines in the country, but it has a very less international
presence. Some of the major competitors of Alaska Airlines such as jetBlue, have a competitive
advantage due to its international presence. The best market for Alaska to expand its market could
be China or India. China could be the best option for Alaska airlines to expand its business, and it
will definitely give a competitive advantage to the Alaska Airline (Mallikarjun, 2015).
In a report the International Air Transport Association have predicted China to be the
world’s largest aviation market by the 2022, by overtaking United States. China is a very
developing and growing industry in terms of aviation market and also in terms of economy. The
history of the company describes that its existence have marked in early 16th century, ruled by the
Shang Dynasty. Chinese civilization is recognized to be one of the one of the oldest civilization in
the world, and china has a great trading culture (Chow, 2017).
China is one of the most developing country in the current world’s economy as the
company have shifted to a market-based economy, thus experienced a very fast and rapid growth in
the social and economic market. China’s current GDP is amounted to $12.24 lakh crores and thus
has the 2nd largest GDP in the market. China is listed as the world’s largest economy in the world
by purchasing power parity. China’s GDP growth resulted to 6.2% till 2019f. The has the largest
market in terms of import and export trading, and considering the legal environment the business

2ANALYSIS ON INTERNATIONAL EXPANSION OF ALASKA AIRLINES
law and the taxation law of the country is very business friendly. The current exchange rate of
Chinese Yuan to US Dollars is US$0.15 (Chow, 2017).
Considering the China’s location and size, China is the 4th largest country in the world,
covering 9,569,901 square kilometers of land and 27,060 square kilometers of water in total and
having the population of 1,343,239,923. China is the most populated country in the world, thus is a
great market for any businesses as they market opportunity and variety is verse. More population
means more consumption. China is located in the continent of Asia, sharing its land borders with
more than 10 nations and in Asia, China is the most developed country in terms of economy and
infrastructure (Chow, 2017).
The entry of Alaska Airline in the Chinese market will give the company a competitive
advantage, due to the increased opportunities in the aviation industry of China. The economic and
legal environment of China will help the company to expand its market and elevate its operation by
lessen its costs (Shenkar, Luo & Chi, 2014).
Conclusion
Thus from the above discussion it can conclude that for Alaska Airlines, China could be the
perfect international market to start, because due the exchange rate value, the company will have a
cost advantage from their other competitors in United States. Since the consumer market of the
China is huge the company will have a verse opportunity to increase its market and consumers, thus
can increase its revenue and assets as well.

3ANALYSIS ON INTERNATIONAL EXPANSION OF ALASKA AIRLINES
References
(2019). Retrieved from https://www.alaskaair.com/
Brown, R. A. (2018). Chinese business enterprise in Asia. Routledge.
Chow, G. C. (2017). Capital formation and economic growth in China (pp. 1186-1221). BRILL.
Mallikarjun, S. (2015). Efficiency of US airlines: a strategic operating model. Journal of Air
Transport Management, 43, 46-56.
Shenkar, O., Luo, Y., & Chi, T. (2014). International business. Routledge.