Analyzing International Business Strategies: British Airways Report

This report provides an executive summary and in-depth analysis of international business strategies, particularly focusing on British Airways and its approach to foreign market expansion. It delves into the significance of international strategic alliances within the airline industry, exploring motivations behind their formation, partner selection criteria, and the benefits and challenges associated with this approach. The report examines various market entry strategies like joint ventures, licensing, and import/export, highlighting their suitability for international business growth. Through a literature review, the report discusses the evolution of international strategic alliances, emphasizing the collaborative nature of these partnerships and their role in navigating complex international business environments. The report also considers the critical issues faced by British Airways and the importance of employee motivation in ensuring the success of these alliances. Overall, the report offers valuable insights into the dynamics of international business and the strategic considerations necessary for sustained success in the global marketplace.

International Business

Executive Summary
According to this report it can be evaluated that international business is the main
concern of most of the companies want to achieve success and maintain long-term
sustainability at the old market place. To improve their trade operations in various foreign
countries can help full to gain more profitability so that company can effectively adopt a
specific strategies to deal with the trading mechanism & all the other foreign trade
consideration. Move from domestically to internationally, is very challenging for the
company and also it provide various uncertain situations so it is necessary for the company to
adopt specific strategies for their business expansion. This report considered the use of
international strategic alliances for the foreign market expansion and also discusses some
specific consideration which provides motivation to the company in case of International
strategic alliances. Furthermore, this report evaluates specific benefits and challenges which
are experience by the company in context of international business alliances. It is identified
that there are various benefits of this like improve customer base, enhance the brand
awareness, and make company position strong. Some specific challenges also create various
problems for the strategic alliances. This report examine specific consideration which is
related to the new market entries and provide appropriate strategies like joint ventures,
licensing, import and export and franchisees. All these strategies are beneficial for the
company so that they can effectively improve their operations in the foreign countries.

Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Literature Review.......................................................................................................................4
International strategic alliance in airlines in foreign market expansion................................4
Motivation behind the formation of international strategic alliance......................................5
Criteria that is used by Airlines in the partner selection process...........................................7
Analysis and discussion.............................................................................................................7
International strategic alliances as an option to foreign market expansion...........................7
Benefits & challenges of using international strategic alliance in foreign market entry......8
Suitable alternative market entry strategy............................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
As for the modern generation, everyone’s want to expand their market all around the
world and improve their market share so that companies can effectively established their
strong position at the whole marketplace. Aviation industry is more concerned about their
business and also regulates domestic and international operations for the convenience of the
customers (Button, 2020). For international business, it is necessary to maintain some
specific activities and strategies which are beneficial to maintain international business
management considerations. For successful international business, companies need to take
care about some specific facts related to custom laws, legislations, external environmental
factors & specific knowledge and skills about the aviation industry. The main concern of this
report is to to discuss about British Airways international business which is founded in 1974
and headquartered in London, UK. This is most famous international airlines group which
operating their business activities in various locations. In this report, critical literature review
will discuss related to the international strategic alliances in the foreign market expansion.
This report also determines specific understanding about the motivation behind formation of
British Airways. Moreover, this report also conducts a specific analysis and discussion and
evaluates various benefits and challenges of chosen international strategic alliance with
involvement of partners.
Literature Review
International strategic alliance in airlines in foreign market expansion
According to the Michael Pitt,( 2021), international strategic alliances in the field of
airlines is considered as be e-collaboration of various elements and activities and considered
as the facility management industry. With use of partnership and other activities, international
alliances effectively follow various legislations and economical situation for foreign market
expansion. As for the last decades, more than 500 alliances in context of airlines established
frequently. On the basis of current analysis, to fill the gap of knowledge in context of various
difficulties in corporation, academic and functional assessment is necessary for strategic
alliances. For successful business expansion in the foreign market it is essential to maintain a
strong partnership which is considered as the specific arrangements related to the
organization so that they can effectively share information between more than two partners
for the purpose of support them (Meersman and Van De Voorde, 2020). Specific partnership
between the companies improves the commercialization and also creates specific value of the

firm. Research and development alliances among the multiple partners can maintain specific
information and resources for the success. Few last year's, FM activities and functions in
context of airports become more strategic. Airline functional management is play a prominent
role and maintain various airports out sources and creates a specific functional management
contacts professionally. FM management network structure maintain all the consideration of
airports and airlines so that they can make or specific creation. Network can be define a
specific series which can help full to maintain permanent link between the organizations and
easy access of airlines networking. Every airline can spread a specific value and maintenance
specific partnership to maintain a fluid structure.
According to the Thomas MacAvoy and et. al. , ( 2008), explained foreign market
expansion of the British Airways which faced various critical issues by British Airways-
USAir, both are coordinated team which face critical situations related to the management
structure to maintain the growth of new announced alliances. Both countries team members
create a specific blueprint and present their seniority management and address the issues
which they are facing for foreign exchange market alliances. To structure of global strategic
alliance it is necessary for the British Airways to maintain motivational level of their
employees so that they can effectively maintain all the information which are helpful to
anticipate in the foreign market expansion. Rich Wilson of the UsAir , co-operate with four
team members which exchange specific information which can be implemented for initiated
strategic alliances considerations between British Airways & UsAir.
Motivation behind the formation of international strategic alliance
According to the Peng Mike, discussed that informal institution centre on the another
collective norms supported by the normative & cognitive pillar. When a company decided to
move on in another location than various criticisms and peer pressure also analysed. In this
specific situation, build collaboration with another company helpful to protect the brand
image at the whole market place. It is necessary to choose the target market and then make a
strategic plan which can help full to suit the international market. Use all the resources &
exploit exhausting resources will helpful to search new opportunities. The main motive of
exploitation is to improve the productivity & effectiveness of the current employed capital &
assets with specific standards, when both company container width size so that their
integration levels also become high that can help full maintain specific control on the
operations. The specific difference between integration & degree of control can help full to
make motivation for the formation of strategic alliances. Growing international marketing is

become the main concern in the spine which maintain a specific growth of their partners and
maintain specific consideration related to the merger which can help to provide more
competitive advantages. The help of licensing agreements, cooperative arrangements, joint
ventures and cross shareholders deals is helpful and motivate the companies to maintain
specific international alliances rather than take a risk & waste time to invest a massive
amount of money in other practices.
According to the Bachelor Thesis, (2008), revealed that the specific purpose of the
strategic alliances vary as for the situation throughout the past few years. Most of the
organization build alliances on the basis of their different external situation and share a
specific motive. There are some specific reasons are discussed which demonstrate the
specific understanding & motivation behind the international strategic alliances and why
people initiate to establish international alliances -
Opportunities to enter into new international market - This is considered as the main
reason and also motivation behind to establish a international strategic alliances. International
alliances effectively expand their business market across the whole globe and also deal with
various nations. With the help of manufacturing, joint partnership, branches, joint ventures
are most convenient to reach into the new market and all these considered by the strategic
alliances to take new opportunities. Developing companies contain as the specific
complementary expertise that specifically working with the local areas and they want to
expand their business in foreign countries so it is necessary to identify the impact of political
and also region on their business operations. For international business, the uncertainty and
specific challenges are so it is necessary for the strategic alliances to maintain all the
considerations for new entries. In context of British Airways, It maintains specific ability and
capability to operate their business operations more securely. Before entering in the new
market internationally, airline maintains multinational resources and subsidiaries and also
selects specific partners for a successful establishment. British Airways require specific
contemporary expertise which can help full to collaborate to build a strategic partnership for a
specific purpose (Migdadi, 2021).
Maintain Competitive position - To maintain effective position of international alliances
it is necessary to determine their competitive position currently. Through partnership, various
foreign companies can effectively penetrate their domestic market into the foreign countries

and maintain their market share. In context of international alliance redirect consideration is
company which can help to protect domestic territories and maintaining motivation level.
Criteria that is used by Airlines in the partner selection process
According to the Marco Carbajo, (2018), determined that it is necessary to maintain
a partner selection process which can help full to manage all the ethical, social, legal, and
economical considerations in context of business. For business expansion, partnership is
appropriate method but not everyone can get success in context of partners. It is necessary to
maintain potential partner disputes so that company can effectively maintain partner selection
process for the business expansion. To choose the right partner, it is necessary to conduct
research and development process so that company can effectively identify right partner for
foreign market expansion. In case of British Airways, specific criteria are also considered by
the manager to select the appropriate partner for their business. British Airways maintain
some consideration which is essential in partner selection process so that company can
effectively maintain their operations in the foreign countries (The Best Criteria for Selecting
a Business Partner). There are specific criteria considered by the British Airways for selection
of the partner in context of foreign market expansion such as passion towards their business
operations, shared a same vision, create effective business network, improve effective
creativity. All these effective criteria required by the British Airways in their partner's so that
they can effectively proceed the foreign market expansion and maintaining successful
business operations with them so that they can help to improve their market growth in the
other foreign countries. British Airways is most famous airlines in UK which are providing
high quality of facilities to their customers and clients and also maintain a specific position
internationally. Airlines constantly expand their business operations in other foreign countries
with the right partners so that company can make more profitability and competitive
advantages (Petcu, 2021).
Analysis and discussion
International strategic alliances as an option to foreign market expansion
To target the new audience and reach them effectively is the main concern of the
company that's why company wants to improve their business operation and conduct business
expansion effectively. It is necessary for the company to improve the Global footprint with
the help of strategic partnership. To take more profitability,. Foreign market expansion is a
best technique which provides strength and improves the sustainability rate of the company.

British Airways need to you considered some strategies which are beneficial in foreign
market expansion like alliance options, provide various techniques to establish business in
the foreign market and take care about all the legal and ethical considerations. It is necessary
to maintain single local alliances which can help to create effective position and maintain
good performance in context of international competitors. Company is also looking forward
to use multiple local alliances so that company can effectively enter into the new market with
the help of local partner and also International partnership (Tu, Li, Fu and Lei, 2020). Single
Global alliances and multiple global alliances also considered as the main a strategy which is
determined by the British airlines to maintain effective position in the foreign market. All
these strategies are beneficial to create specific position at the hole for the marketplace so that
they can effectively attract international audience and engage in their business operations.
British Airways continuously improve their operations so that company can effectively
improve their market growth rate as compared to the rivals.
Benefits & challenges of using international strategic alliance in foreign market entry
As for the current scenario, strategic alliances is considered as the most common
techniques which are considered by the company and maintain specific considerations related
to the company like improve awareness about the company and maintenance capital with no
more financial expenses and effect. Strategic business partnership is beneficial to expand the
business operations which can help you to provide various opportunities and maintained
branch visibility with the help of partner’s efforts so that all the existing services effectively
maintain (Schosser and Hausladen, 2020). There are some various benefits and also
challenges experienced by international strategic alliances which are discussed below-
Benefits
 Utilize supplementary services - This is container as the main benefit of international
strategic alliances which maintain specific position which appeal the successful
operations. It is essential for the company to maintain some specific key skills and
competencies for a survival internationally. Partnership helpful to maintain company
services without this company can lose their capabilities in the new field (Zuidberg
and de Wit, 2020).
 Identification of new markets - To conduct business operations and also enter into
the new alliances, strategic alliances is beneficial to create automatic understanding

about market. That franchisees firm contains no leverages to enter with brand in new
market. In context of franchising partnership, franchises can sell different type of
services slightly in a comparable market place that enables the firm to expand share
for franchise is market place with quite effective. Expand customer’s base - This is also considered as the primary factor of the
international strategic alliances which can improve the customer base in the target
country market. British Airways can effectively improve their international strategic
alliances with the help of various resources and partnership so that company can
appropriately expand their customer base and gain more profitability (Schellenberg,
Harker and Jafari, 2018).
 Access of positive brand awareness - to maintain all the considerations of
international strategic alliances, company can easily spread their positive brand
awareness across the whole globe. British Airways can improve their business
operations and also provide their airline services in various locations so that company
can improve their market position all around the world. International strategic
alliances beneficial to improve the brand awareness of the British Airways on the
mind of the customers of the various countries so that we can effectively take the
services of the Airways without any issue. Strategic partnership will helpful to
maintain a good position of the company so that positive brand image effectively
enhance.
Challenges Selection of right partners - This is considered as the first stage which can
determined that it is essential to choose the right partner otherwise company can face
various challenges in contacts of international strategic alliances. If company choose
wrong partner then it can create a wrong position of the company e at the new market
place and also damage the brand image of the company so it is essential for the British
Airways to pay more attention to select the right partner for international business
alliances. Company can conduct research and development process to investigate
specific partner so that with them company can effectively associate their business
operations (Claussen, Essling and Peukert, 2018).
 Build more trust & honesty - To create more trust and honesty is contained as the
big challenge for the company in context of international strategic alliances. Company
need to take care about their partners and also try to build strong relationships with

them so that they can trust them and also participate in the working of the operations
without any doubt. Avoidance of this factor can improve the critical situation for the
company and create various disputes in the business plan.
 Knowing when to recesses alliance - in this time business facing various frequent and
changing circumstances so it is necessary for the business to take appropriate
decisions. Business alliances continuously providing various mutual benefits to the
both parties so it is necessary to know no the reassess the alliances & change the
foundation. Both companies need to understand the evitable changes so that they can
effectively sign agreement and work collectively over a time period. Some time it is
require to restructure and take appropriate initiative both side of partnership it can be
helpful to maintain business alliances ( John Buckles , 2019).
Suitable alternative market entry strategy
For strategic business alliances it is necessary for the company to maintain alternative
marketing entries for successful international strategic alliances. There are recommendations
related to the different marketing entry strategies which considered by the British Airways
are discussed below -
 Export-import - This is most prominent strategy to enter into the new market. This
method is helpful to importing raw materials, semi finished goods, maintain external
operations in to the other foreign location. This kind of strategy no need specific cost
for the installation of the business it only requires specific contact between the
important and exporting company. Basically importing considers buying & acquiring
product and services from the foreign countries to the home country so that company
can sell into their local market (Subramanian, Bo and Kah-Hin, 2018).
 Joint Ventures - This strategy demonstrate the specific partnership between two or
more companies which deal with similar product or industry. This is strategy include
formulation of the separate businesses by all partnering parties with the help of
collaboration of their resources and capital to obtain a specific goal so that they can
work collectively to reduce the competition level. Joint venture is beneficial for the
company to maintain international strategic alliances so that company can gain more
profitability in the foreign countries.
 Licensing - This strategy is helpful to transfer and share authorities and business
rights to the company that categorized as a license in the term to exchange the few

amount that is known as royalty amount. It does not require investing huge amount &
not create problem in business operations (Ferreira, Mueller and Papa, 2018).
 Franchising - franchise and licensing both strategies are similar but also causes a
little bit difference like it allow an specific entity of the separate nature to use the
company name in against the payment of in term of fees. It is necessary for the
company to understand the requirement of target market and also evaluate the cultural
consideration which can help full to know the requirement of the customers.
Conclusion
As per this report it can be concluded that every organization whether it is belong to
any industry want to improve their business operations so that they can effectively gain more
profit advantage. This report is all about to maintain all the considerations of the international
business and what are the strategies, methods, and resources are required for the company to
conduct business internationally. This report discuss about international strategic alliances
and use of this for the foreign market expansion. This report analyze that there are various
techniques & strategies which are helpful to improve the foreign market expansions like
single local alliances, multiple local alliances, single global alliances and also multiple global
alliances. This strategy is beneficial to maintain a specific position in the new market so that
company can effectively improve their motivational level to maintain all the consideration of
international strategic alliances. This report also discusses various benefits and challenges
which affect the performance in context of international strategic alliances for the firm. It is
considered that lack of coordination, wrong choice of partner, create more trust and honesty
is the main challenges which company can face due to International strategic alliances. There
are some specific benefits which company also analysed which also provide various
opportunities for the business expansion like improve the brand awareness, create more
profitability and enhance the customer base.

References
Books and Journals
Button, K., 2020. Interactions of global competition, airlines strategic alliances and air traffic
safety. In Aviation Safety (pp. 525-544). CRC Press.
Claussen, J., Essling, C. and Peukert, C., 2018. Demand variation, strategic flexibility and
market entry: Evidence from the US airline industry. Strategic Management
Journal, 39(11), pp.2877-2898.
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of Knowledge Management.
Meersman, H. and Van De Voorde, E., 2020. Privatisation and Safety in the European Airline
Business: Economic considerations on competitiveness and insecurity. In Aviation
Safety (pp. 337-356). CRC Press.
Migdadi, Y.K.A.A., 2021. The Impact of Airline Alliance Strategy on the Perceived Service
Quality: A Global Survey. Journal of Quality Assurance in Hospitality & Tourism,
pp.1-32.
Peng Mike W. “Global Strategic Management”, Second Edition, (page 216-240)
Petcu, C., 2021. The Role of Qatar Airways in the Economic Development of Qatar: Before
and During the Gulf Crisis. In The 2017 Gulf Crisis (pp. 325-345). Springer,
Singapore.
Schellenberg, M., Harker, M.J. and Jafari, A., 2018. International market entry mode–a
systematic literature review. Journal of Strategic Marketing, 26(7), pp.601-627.
Schosser, M. and Hausladen, I., 2020. Big Data to Improve Strategic Network Planning in
Airlines. Springer gabler.
Subramanian, A.M., Bo, W. and Kah-Hin, C., 2018. The role of knowledge base homogeneity
in learning from strategic alliances. Research policy, 47(1), pp.158-168.
Tu, N., Li, Z.C., Fu, X. and Lei, Z., 2020. Airline network competition in inter-continental
market. Transportation Research Part E: Logistics and Transportation Review, 143,
p.102117.
Zuidberg, J. and de Wit, J.G., 2020. The development of long-haul low-cost networks in the
North Atlantic airline market: An exploratory data approach. Transport Policy, 95,
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Online
John F. Buckles , 2019, Understanding The Benefits And Challenges Of Strategic Alliances
[ Online] Available Through , <
https://www.franchise.org/franchise-information/understanding-the-benefits-and-
challenges-of-strategic-alliances/>