International Business: Airline Strategic Alliance Report Analysis

This report examines the use of international strategic alliances for foreign market expansion, with a specific focus on the airline industry and the case of Easy Jet. The report begins with an executive summary and introduction, followed by a literature review that explores the role of strategic alliances in the aviation sector. It then delves into the motivations behind forming international strategic alliances, including economies of scale, increased competitiveness, and market entry. The report further analyzes the criteria airlines use in partner selection and discusses the benefits and challenges of utilizing these alliances for foreign market expansion. It also provides an analysis and discussion of strategic alliances as a viable option for entering new markets, including an examination of Easy Jet's approach to alliances. Finally, the report concludes with a review of suitable alternative market entry strategies and references to support the analysis. The report highlights how international strategic alliances can facilitate growth and sustainability in the global business landscape.

International Business

Executive Summary
As per this project, it is analysed that every enterprises want to contain a international
appearance so that they can appropriately e lead the long-term sustainability all around the
world. The supreme concern of the enterprises is to maintain their trade operations so that
businesses can effectively lead foreign currencies in order to evolve their profitability. To
gain more global appearance it is necessary for the enterprises to properly follow specific
strategy which lead international business activities. This project discussed motivation behind
the usage of international strategic alliances so that companies can effectively consider this
for their business expansion. This project evaluated the use of the international strategic
alliances in respect of foreign market expansion. There are various benefits & challenges also
so explained in this project which can help to tackle all the specific issues in context of
strategic alliances.

Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
MAIN BODY.............................................................................................................................4
Literature Review.......................................................................................................................4
Use of International strategic alliance in airlines for 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
Every enterprise want to achieve a global reach so that company can enhance their market
share and growth rate more appropriately as compared to their competitors. In order to attain
more profitability for international business purposes, it is necessary for the businesses to
follow specific strategic framework with the help of strategic planning so that it business can
opt most appropriate strategies for their international business activities (Button, 2020). To
maintain all the consideration related to the international business, companies need to be
follow some specific procedure & policies related to the laws, legislation, custom laws,
impact of external environment, & also maintain specific understanding about the specific
applicability and knowledge of aviation industry. The prime aim of this project is to explain
about the Easy jet which is well known multinational British airline company founded in the
year 1995 & headquartered in Luton , UK. This project is 1mainly determines the literature
review about the international strategic alliances and also so consider the foreign market
expansion. Furthermore, this project will discuss the main motivation behind the specific
creation of the Easy Jet & provide explanation about benefits & challenges of the
international strategic alliances so that business can effectively maintain their performance
level.
MAIN BODY
Literature Review
Use of International strategic alliance in airlines for foreign market expansion
According to Micheal Pitt, (2021), it is generally is that aviation industry pay more
concern about specific considerations in context of International strategic alliances. For this
purpose, businesses need to follow appropriate strategies related to maintain International
activities. Through partnership activities, mainly International alliances contain appropriate
legislation & determine specifically economical conditions for the successful foreign market
expansion. In previous time, lots of airlines alliances formulated for the purpose of to achieve
the market growth rate globally (Baum and Auerbach, 2017). In this modern time, the main
focus of the business is to bridge the gap of the specific knowledge to maintain appropriate
complexity of the specific corporations & foundations. To maintain the consideration is
related to the strategic alliances it is prominent for the businesses to consider the functional
assessment. As for the foreign market expansion, proper partnership activities and
arrangements needed which can add more value to obtain the specific information about the

partners which support in the international strategic alliances. Foreign market expression
required maintain applications which can help full to develop the commercialization of the
business. It is necessary for the businesses to conduct research and development activities and
maintained the alliances between within those partners who are mainly participate to manage
the information & resources to gain success. It is analysed that foreign management activities
& practices related to the airports became stronger as per the previous years. Functional unit
of the airlines is responsible to maintain all the resources and create effective functional
management contacts. The network of FM , regulate all the information to evolve the value of
the airline operations. Basically network system set a specific parameter which create proper
link between businesses so that it can make simple to access the airline networks.
On the basis of analysis of case study related to the Easy Jet success in European business
travel, it is generally is that this case study is related to the partnership with Amadeus. In
2013, Easy Jet & Amadeus maintain their partnership on the next level with a specific motive
to support the strategy of Easy Jet to target the travel market. Their goal was clear , to
improve the Easy Jet travel booking with the uses of Amadeus creative light ticketing flow. It
strategies generated various advantages, within 2 years, Easy Jet bookings with the Amadeus
became double years on the year in context of both offline & online booking &
demonstrating 20% of the Easy Jet booking (Douglas and Tan, 2017). There does continuous
growth exist and it provide long term advantages to the Easy Jet. This is considered as the
successful foreign business expansion of the Easy Jet which provide long term sustainability
rate at the whole market place.
Motivation behind the formation of international strategic alliance
According to the Daniella D' Alimonte , (2014), discussed about specific 6 reasons
which can helpful to for forming the strategic global business alliances & also play a
motivational role behind the proper formation of the international strategic alliances. All
these 6 reasons which became the motivation for the international strategic alliances such as
creating the economies of the scale, evolving competitiveness, eliminate risk factors,
maintain new standard for the technologies, and enter into the new marketplace &
overcoming the competition level at the whole marketplace. All these factors are creating
more motivation which can useful in the formation of the international strategic alliances in
order to gat success all around the globe. International alliances activities helpful to acquiring
the new skills & resources which can also became the main reason of the motivation & also
provide help to the partners of the business. As per this activity, partners support each other's

& also provide the vital resource & use partnership in order to extend their skills to set into
the new sectors & areas so this can be considered the motivational factor which supports the
partners to looking forward for the international strategic alliances activities. This is also
helpful to maintain. All the other specific consideration related with the licensing agreements,
joint ventures, cross shareholders deals & cooperative arrangements which motivate the
businesses to manage the parameters about the international alliances instead of take a risk &
also waste their time & investment in other irrelevant activities (Cherunilam, 2020).
According to Bachelor Thesis, (2008). evaluated that motive of the strategic alliances
vary as per the situation as matter of time & facts. Some businesses create alliances according
to their external conditions with a specific purpose. To analyze the best outcome, there are
few reasons are defined that depicted the deep understanding & also motivation behind the
creation of the international strategic alliances & also considered that why businesses need to
take appropriate initiative towards establishment of the international strategic alliances.
Chances to explore new international marketplace - International alliances is provide
the opportunity so that businesses & people can effectively enter into the new market &
maintain their business operations more appropriate. This is considered as the prime reason
which creates strong motivation level. Through joint ventures, branches, partnership & also
production activities, any business can enter into the new market to maintain their
international strategic alliances. In order to contain all the new entries, it is necessary for the
companies to maintain all the challenges which create issues in context of international
business. In case of Easy Jet , before taking a decision to move towards the international
market , airlines need to address multiple resources & subsidiaries & airlines also need to
focus on to select good partners so that it provide more success. Easy Jet is to use
contemporary expertise that is useful in collaboration & creation of strategic partnership for
the specific motive (Ferreira, Mueller and Papa, 2018).
Manage Competitiveness - To gain more Competitive advantages , it is compulsory for
the businesses to identify the market position of their rivals which can lead more positive
results. To lead the whole market internationally, business need to pay more attention to stay
competitive. Businesses can create effective partnership with foreign companies helpful to
lead in domestic & foreign market. International alliances are useful to protect the specific
domestic territories & develop the motivational level.

Criteria that is used by Airlines in the partner selection process
According to Macro Carbajo , (2018), revealed that through partner selection process,
business can effectively maintain the legal, ethical , social & also economical applicability to
determine the growth of the business. As per the purpose of business expansion, partnership
is beneficial & most prominent methods which lead more success but it is necessary for the
businesses to concentrate to take effective & trustworthy partners otherwise companies
cannot get more success if they contain not effective partners. To pick the right partner is
necessary for the development of the airlines because it is determined the service industry.
Businesses need to follow partner’s selection process which can help to get the right partner
which can provide their best efforts in the business expansion. In context of Easy Jet, it is
considered partners selection process which can help to build more value in the alliances.
Partner selection process maintains the legal perspective & also giving the appropriate
governance structure. This process is beneficial to diminish the conflicts & disputes between
the partners which can enhance the success rate of the Easy Jet . Airlines also conducted
research & development process which can help to gain the right partner for the business
which provides best participation in the foreign market expansion. Easy Jet is popular airline
which is offering their services with suitable cost & also maintain their quality & providing
the good quality service to their potential customers & their services liked by customers so
the customers base strong of this airline that why airline continuously expand their business
activities(Hamilton and Webster, 2018).
Analysis and Discussion
International strategic alliances as an option to foreign market expansion
International strategic alliances are considered as the most critical options which help in
foreign market expansion & also connected with the new population. Through business
expansion in foreign countries, companies can target the massive number of population &
enhance the level of market growth. Businesses can expand their business operations with the
help of strategic planning method which demonstrate the proper guidance to create
international footprint & create more influential strategic partnership. In order to achieve
more positive outcomes, businesses opt for the foreign marketing consideration so that they
can improve the long run sustainability rate. In term of Easy Jet , need to follow some
specific procedure related to the foreign market & also use alliances options which
accumulate numerous methods to build good market image of the business into the new
foreign market. It is necessary for the company to follow proper ethical, legal & social status

which makes the value more strong of the firms. Company can manage single local alliances
that can aid to improve the positioning of the business as compared to the global competitors.
Easy Jet is also trying to manage the multiple local alliances which can help to enter the new
market through the support of the local partners. Easy Jet also can use the multiple social
alliances which can evolve the market value of the airline across the whole globe. These
strategies are considered bas the best option for the airline to maintain the international
strategic alliances. Easy Jet show their more concern on the expand their business in various
locations & gain more profitability & sustainability rate (Iammarino, McCann and Ortega-
Argilés, 2018).
Benefits & challenges of using international strategic alliance in foreign market entry
To enter the business into the foreign market, it is necessary for the business to properly
follow all the social, legal & ethical procedures otherwise it can provide numerous issues
which can provide the adverse impact on the market value of the business (Weaver, 2017).
Strategic alliances contain many benefits which can helpful to evolve the market growth of
the business. Before enter into the foreign countries market, companies need to enhance their
understanding about the marketing, maintaining, financing & human resource of the firm.
Strategic alliances are the specific opportunity for the business through which companies can
boost their brand visibility & maintain a good team. The description related to the benefits &
challenges facing by the businesses in context of International strategic alliances are as
follows
Benefits
 Generalize subsidiary facilities - International strategic alliances secure the entry in
the foreign market which can help to create the more customers base with the help of
generalize the subsidiary facilities. This is considered as the prime benefit of the
international alliance which most of the companies are looking for when they are
taking a decision about the foreign market entry. Businesses need to sharpen their
skills & develop more competencies which can improve the partnership & maintain
the services of the enterprises (Kleymann and Seristö, 2017).
 Clarity about the new target market - Through International strategic alliances, it is
making possible to obtain the clarity of the new market which businesses take
decision to enter. Through strategic alliances, companies can open new franchisees
which can require no leverage to target the new market. Franchising partnership is

beneficial to deliver the more value of services related with the business operations of
the companies.
 Enhancement of brand image - To follow all the applicability of the international
strategic alliances, it will help to enhance the brand image of the companies. To
regulate the business operations into the foreign countries in the main task for the
businesses. Through effective partnership is helpful to foreign market entries which
can helpful to improve the brand image of the business. Easy Jet maintains the
requirements of the business for the strategic alliances to get entry into the new
foreign market (Lawton, 2017).
Challenges
 Choose the most deserving partners - To select the right partner for the international
strategic alliances is the main challenge for the companies. To get successful entry in
the foreign market, it is mandatory for the companies to choose the deserving partner
with whom all the international alliance activities can be done in an effective manner.
In context of Easy Jet , it is determined that at initial level , company also faced this
challenge . With the help of research & development method, Easy Jet overcome this
challenge & selected most appropriate partners for their business expansion
operations (Sergeev, 2019).
 Fulfill customer’s expectations - This is also considered as the massive challenge of
the companies in context of the international strategic alliances. Foreign market is
totally new for the firm so it takes more time & courage to identify the needs & also
fulfill the adequate expectations of the customers. Easy Jet work hard with their
partners & established the strong relationship with the customers so that company can
became successful to address the customer’s requirements & fulfill their expectations
(Migdadi, 2021).
 Identifying when to the recesses alliance - It is necessary for the companies to
indentifying the situation when to recesses alliances maintained. This is necessary for
the business to take appropriate decisions so that company can consider some specific
mutual benefits. Before sign the agreement, it is mandatory to maintain the
requirements of the agreement so that company can address the changing scenario in
order to maintain good understanding about the reassess alliances. Partnership need to
decide about the operations & help the company to take the suitable decision which
can helpful to manage the strategic alliances business.

Suitable alternative market entry strategy
To determine the successful foreign entry, it is necessary for the companies to consider
the most suitable alternative strategy for the market entry. There are various strategies which
are recommended for the Easy Jet for the market entry. The description of all these strategies
are discussed below -
 Export-import - This strategy is most common & suitable for the companies to
expand their business operations into the foreign countries. This strategy is beneficial
because it can aid in importing the raw materials & semi finished good & deliver
more value to maintain the external business trade operations with the foreign
countries. This strategy mainly needs more cost & network. Which can help to
maintain the dealing with the importing & exporting activities? Importing regulate the
buying goods from foreign countries to home country. Company can effectively sell
their products & services into the local market (Peng Mike).
 Joint Ventures - The main concern of this market strategy is to develop the
partnership with the tow or many more enterprises that are offering same goods &
belong from the same industry. This market strategy involves the regular of separate
business through partnering parties & partnership. With the help of all the
collaborative resources, it is necessary for the companies to maintain the optimization
of the resources so that company can take more Competitive advantages. This strategy
is beneficial for the development of the strategic alliances to enter into the foreign
countries.
 Licensing - This market strategy mainly transfer the authorities and rights of the
business to that company which contain the license in exchange the same amount.
This is strategy not require a massive amount for investment purpose and not even
create any problem related to the business activities (Schellenberg, Harker and Jafari,
2018).
 Franchising - This strategy same as the license strategy but contain a little bit
difference like franchising strategy allow an entity with in a separate nature which can
include the company name against the proper payment of the fees. Franchisee mainly
accesses the franchisors proprietary knowledge, processes, trademarks & also
provides permission to sell the goods under franchisors business name.

Conclusion
On the basis of this project, it can be concluded that to maintain International business
consideration, it is necessary for the enterprises to regulate all their operations in a systematic
manner and also take care about domestic and foreign trade activities. In term of aviation
industry, the main focus is to cover the whole market place and provide most effective
services so that company can take more competitive advantages. This project it is totally
depend upon the usage of international strategic alliances so that businesses can effectively
evolve their foreign market expansion to increase specific business operations and target
foreign population so that business can be gain international reach. This project talk about
some specific foreign market expansions factors like single local alliances, single global
alliances, multiple local alliances & global alliances so that businesses can effectively evolve
their motivational level. This project also so determined specific benefits & challenges.
Enhancement of brand value, high level of profitability rate, customer loyalty is the main
benefits for the International strategic alliances. it is generally is that low level of
coordination, wrong selection of partner, low level of trust are the main challenges which
business are experiencing & also trying constantly to resolve these issues.

References
Books and Journals
Baum, H. and Auerbach, S., 2017. Strategic management in the aviation industry. Taylor &
Francis.
Button, K., 2020. Interactions of global competition, airlines strategic alliances and air traffic
safety. In Aviation Safety (pp. 525-544). CRC Press.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Douglas, I. and Tan, D., 2017. Global airline alliances and profitability: A difference-in-
difference analysis. Transportation Research Part A: Policy and Practice, 103,
pp.432-443.
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of Knowledge Management.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Iammarino, S., McCann, P. and Ortega-Argilés, R., 2018. International business, cities and
competitiveness: recent trends and future challenges. Competitiveness Review: An
Sustainable industrial value creation: Benefits and challenges of industry 4.0.
In Digital Disruptive Innovation (pp. 231-270).
Kleymann, B. and Seristö, H., 2017. Managing strategic airline alliances. Routledge.
Lawton, T.C., 2017. Cleared for take-off: Structure and strategy in the low fare airline
business. Routledge.
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)
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.
Sergeev, V.E., 2019. MOTIVES AND FORMS OF GLOBAL STRATEGIC ALLIANCES:
AIRLINE ALLIANCES. In Весенние дни науки ВШЭМ (pp. 75-77).
Weaver, M., 2017. Strategic alliances as vehicles for international growth. The Blackwell
handbook of entrepreneurship, pp.387-407.
Online
D' Alimonte S., 6 Reasons for forming strategic global business alliances, 2014 [Online]
Available Through http://www.tradeready.ca/2014/fittskills-refresher/8-reasons-forming-
strategic-global-business-alliances/