International Business Report: Easyjet's Strategic Alliance Analysis

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This report provides an executive summary and in-depth analysis of international business strategies, with a focus on strategic alliances within the airline industry, using Easyjet as a primary case study. The report begins with an introduction to the topic, followed by a literature review exploring international strategic alliances and their role in foreign market expansion. It delves into the motivations behind forming these alliances, including market entry, competitive positioning, and resource optimization. The report examines the criteria for partner selection, the benefits and challenges of using international strategic alliances, and alternative market entry strategies like joint ventures, licensing, and mergers and acquisitions. The analysis includes discussion on Easyjet's specific challenges in foreign market expansion, emphasizing the importance of coordination, motivational factors, and the impact of political and regional factors. The report highlights the need for companies to maintain a competitive position, protect domestic territories, and effectively manage resources to achieve success in the international market. Overall, the report offers a comprehensive overview of international business practices and strategic alliances, providing valuable insights for students and professionals in the field.
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International Business
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Executive Summary
It can be evaluated from just report that international business organisation is mainly
concerned with most of the companies which they wants to achieve with respect to their success.
The organisations are required to maintain long-term sustainability in the Marketplace as it can
be done while improving their trade functions. This helps the company to gain more profitability
from the competitive market while adopting a specific strategy in order to provide their goods
and services and to domestic or international market place. It is very difficult for the companies
to move from domestic market to International platform as it is also required to deal with the
uncertain situations and for that the organisation is required to adopt a specific Strategies for the
expansion of their company into the competitive market. The report is considered the various use
of international strategic alliances for the expansion of business into the expansion of business
into International platform. It was also discussed with some specific consideration which can be
used by the organisation in order to motivate with respect to International strategic alliances.
Moreover the report also evaluate specific benefits and challenges which can be experienced by
the chosen organisation with reference to the international business Alliance. It was analysed that
there are several benefits such as improving the customer base, enhancing the brand awareness
and developing positive brand image into the competitive market. The report examine the
specific consideration which context to the new market entries and provide an appropriate
strategy such as joint ventures, licensing, importing and exporting, merger and acquisition and
many more. All these strategies are beneficial in order to improve their functions in to the
competitive market which is in the foreign country.
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Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Lecture Review............................................................................................................................................4
International strategic alliances in airlines International strategic alliances in airlines in foreign market
expansion................................................................................................................................................4
Motivation behind the formation of international strategic alliances.....................................................6
Criteria that can be helpful for the airlines in the partner selection process..........................................7
Analysis and Discussion...............................................................................................................................8
International strategic alliances an option with respect to expansion of business into the foreign
market.....................................................................................................................................................8
Benefits and challenges of using international strategic alliances in foreign market entry.....................9
Suitable alternative market entry strategy............................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
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Introduction
With reference to the model generation every business organisation wants to expand their
business at the global level this can be possible by the business organisation while improving
their market share and developing a strong position into the market so that the customers will be
more attracted towards the organisation. Aviation industry is more concerned with respect to
their business as they are regulated at domestic and international platform in order to provide
convenience to their customers. When the organisation want to be successful in to the
international platform then the companies are required to take care about some specific facts
which includes custom laws legislation external environment factors and the knowledge and
skills which are required by the work force into said industry (Abdelkafi, Hilbig and Laudien,
2018). The report is discussed about easyjet which is an international business organisation. The
company was founded in the year of 1995 by Srelios Haji-Loannou. It is the low cost Airlines
grow whose headquarter is located in London Luton airport. Company is providing their services
over 1000 routes in more than 30 countries. The report is discussed about the critical lecture
review which is related to the international strategic alliances in foreign market expansion. It is
also used in order to determine the specific understanding about the motivation behind formation
of easyjet airways. The specific analysis and description which helps in evaluating various
benefits and challenges with respect to the chosen an international strategic alliances why
involvement of partners.
Lecture Review
International strategic alliances in airlines International strategic alliances in
airlines in foreign market expansion
As per the procession of Michael Pitt,(2021), International strategic alliances is
considered as a e-collaboration with several elements and activities that must be considered as
they helps in providing better facility of Management in the industry. When the company use of
partnership and other activities the international Alliance is effectively follow from legislation
and economical situation because of the international market expansion. By seeing the past
scenario it can be says that more than 500 alliances with reference to the airlines established
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frequently. With considering the present scenario in order to fill the gap of knowledge there are
various difficulties which must be faced by the companies with respect to corporation, academic
and functional assessment, as it is very necessary for the organisation to develop their strategic
alliance (Al-Thaqeb, 2018). When any of the business organisation wants to be successful with
respect to the expansion in the foreign market then it is necessary for such companies to maintain
a strong partnership as with the help of a specific arrangements between the companies so that
they can effectively share the information between each other. This helps them to attend the
purpose and support it into an effective manner. A specific partnership between the companies in
proves the commercialization and also helpful in order to create a specific value of the form into
the competitive market which can be used by the organisation in order to attract the targeted
audience towards the company. Research and development alliances among the multiple partners
are also required to maintain a specific information in a specific manner so that they can utilise
their resources in order to get success from the competitive market.
In the opinion of Thomas MacAvoy and et. al., (2008) explain the following market
expansion with respect to the easyjet as this is the very critical issue faced by the chosen
organisation. The company has faced an issue with respect to coordination between the team
members as it because of the structure of the management. This resulted in the development of
the structure of the team in order to maintain the growth of new announced alliances by we
choose an organization (Coudounaris, 2018). Both the countries team members can develop a
specific blueprint and present their seniority management so that they can easily address the
issues which are faced by them with respect to the foreign exchange market alliances. It is very
important for every type of business organisation to maintain the motivational level within the
workforce so that they can give their best to the organisation which can be used in order to attain
the common goal of every type of business organisation to maintain the motivational level within
the workforce so that they can give their best to the organisation which can be used in order to
attain the common goal of company into an effective manner. It is very important for the chosen
organisation to resolve the issue which they are facing with respect to foreign exchange market
alliances. as it is necessary for the company to maintain motivational level so that they maintain
all the information with respect to the foreign market expansion.
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Motivation behind the formation of international strategic alliances
The views of Peng Mike, (2018) he said that the informal institution centre is the another
collective norms which are supported by the normative and cognitive tillers. This can be used by
the organisation in order to decide and move to the location Which is beneficial for the firm. It is
required by the company to determine the targeted market so that they can develop a strategic
plan according to their requirements in order to fulfill the suit with respect to the international
market. It is important for the organisation to optimum utilisation of resources and exploit the
exhausting resources so that they can search with respect to the new opportunities which are
present in to the competitive market. As the main objective behind exploiting is to develop their
productivity and efficiency of their present workforce, capital and assets in a specified standards
(Hazlehurst and Brouthers, 2018). The specific difference between the integration and degree of
control can be used by the companies in order to motivate with respect to the formation of
strategic alliances. This can be used by the company in order to grow into the international
marketing as the main objective of this is to spine which maintainer specific growth of their
partners with respect to the merger and acquisition in order to take competitive advantages from
the Marketplace. This can be used by the organisation in order to licensing the agreements
between the partner, Cooperative arrangements, Joint ventures and cross share holders. This
helps the company to motivate in order to maintain a specific International alliances weathered in
taking a risk and wasting their time in order to invest the mass of amount of money in other
practices.
With the option of Bachelor Thesis, (2008), he has relieved that the main objective of
strategic alliances is to vary from situation from the past few years. As many of the companies
used to build alliances on the basis of their different external situations and share a specific
motive behind adopting a strategic Alliance. There are some specific reasons which are
mentioned below in order to demonstrate the specific understanding and motivation behind the
international strategic alliances and why the people used to initiate this in order to establish the
foreign alliances (Khojastehpour and Shams, 2020). This discussed below:
Opportunity to enter into foreign market: this can be used in order to consider a main
reason of motivation with respect to establishing International strategic alliances. This
helps the company while manufacturing joint partnership branches ventures with foreign
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join and many other things so that they can reach to the new market with the help of
specific technique in order to take with the help of specific technique in order to avail
new opportunities from the competitive market. This can be helpful while determining g
expertise in order to work with the local area and they wants to expand their business into
the foreign country. As it is very necessary for the organisation to identify the impact of
political and also regional factors on the functions of the business organisation. As it
helps them to determine the uncertainty and specific challenges which might be faced by
the organisation and for the same it is required by the company to develop their
techniques in order to maintain the consideration for new entries into the competitive
market. With respect to the chosen an organisation it is highly required by the company
to maintain a specific ability and capabilities so that they can perform their business
functions in most secure manner (Koning, Mertens and Roosenboom, 2018). It is
important for the company before entering into the new market to maintain a
multinational resources and subsidiaries so that they can select specific to maintain a
multinational resources and subsidiaries so that they can select specific partner which can
be helpful in order to attained success in the establishment of business into the new
market. The organisation is required to determine the contemporary experts which can be
used in order to collaborate to build a strategic partnership for a particular purpose.
Maintain competitive position: it is highly required by the chosen organisation to
maintain effective position in to the competitive market with respect to the foreign
alliances. With the help of partnership various foreign companies can effectively
penetrate with their domestic market into the foreign market as they used to maintain our
market share which can be used by the organisation in order to develop a positive brand
image into the market (Li and et. al., 2018). With respect to the international alliances
redirect consideration can with respect to the international alliances redirect consideration
can also be adopted by the company as it helps them to protect the domestic territories
and maintaining motivational level.
Criteria that can be helpful for the airlines in the partner selection process
According to Marco Carbajo, (2018) it was analysed by him, that it is necessary for the
organisation to maintain a partner selection process so that they can fully manage all the ethical,
social, legal and economic consideration with respect to the the company. It is important for
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every organisation to adopt an appropriate method of partnership but not everyone can get
success with respect to the chosen of partners. It is important for every organisation to expand its
business into the international platform and it is necessary for them to attain their objectives by
sending their products and services to their targeted audience which are present around the globe
(Procher and Engel, 2018). There are several specific strategies which can be considered by the
chosen Organisation in order to select their partner with respect to the foreign market expansion.
It is necessary for every partner to have a passion towards the operations of a business, share the
same vision, creative and effective network of business which can be used by them in order to
improve their effective and creativity which can be used while providing their goods and services
into the competitive market. These are the server effective criteria which is required by the
easyjet Airways in order to determine a partner so that they can effectively proceed in order to
expand their business into the international platform. This can be used while maintaining a
successful business operations so that they can develop their market growth while capturing a
good market share into the foreign countries. Easyjet Airway is most famous Airlines as the
headquarter is also located in United Kingdom. The company's famous because they are
providing the high-quality of facilities to their targeted customers and also uses effective skills in
order to provide better quality and also maintains a specific position and international market
place (Ratanavararak, 2018). The companies using low pricing strategy which helps them to
attract more customers in order to to avail their services from the competitive market. The
organisation also expanding their business operations into the international platform while
determining the right partner so that they can on profitability while taking the competitive
advantages from the Marketplace.
Analysis and Discussion
International strategic alliances an option with respect to expansion of
business into the foreign market
When the main objective of the chosen organisation is to target the new audience while
reaching them into an effective manners so it is highly required by the organisation to develop
their promotional techniques and improve their services while conducting the expansion into an
effective manner. It is very necessary for the chosen organisation to improve the Global footprint
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so that they can adopt a strategic partnership and it will be easy for the organisation to expand its
business at the international platform. This is also helpful in order to take high profitability while
providing their business with the help of best techniques which helps in providing strength and
improving the sustainability rate of the organisation. Easyjet Airways is required to analyse
several strategies which are beneficial for the organisation while expanding their business into
the foreign competitive market. Please activities include alliances option which can be used in
order to provide better techniques while establishing a company into the foreign market as it is
also required by the company to look after the legal and ethical rules and regulations. Single
Global alliances and multiple Global alliances must be determined by the organisation as they
are the main things which can be used by the choose an organisation while maintaining an
effective position in to the competitive market (Tarhini and et. al., 2019). This helps the
company to determine the beneficial in order to create a specific position into the market so that
they can attract the domestic and international audience while improving their manner of
operations. This helps the company to improve the market growth.
Benefits and challenges of using international strategic alliances in foreign
market entry
With reference to the current scenario it is very important for the organisation to develop
the common techniques in order to maintain a specific consideration with respect to improving
the awareness and maintaining a capital with no financial expenses (Tzeng, 2018). There are
many benefits and also challenges which can be experienced by international strategic alliances
and some of them are discussed below:
Benefits
Utilize supplementary services: the main benefit of international strategic alliances is to
maintain a specific position in to the competitive market which can be appealed for
successful operations of the business practices. The partnership helps the organisation to
maintain a good service without this it will be very difficult for the organisation to
survive for a longer period of time into the new competitive Marketplace.
Identification of new marketers: to conduct with the functions of a company and enter
into a new market as it is beneficial for the chosen organisation to create a automatic
understanding about the market place where they are providing their services. The
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company can also franchise their form with no leverage to enter with a brand in new
market as it is a different type of services which can be compared in the market and helps
the company to expand their business with quite effective manner.
Expand customer base: it is the primary sector which can be considered by the
organisation as it is beneficial for determining the international strategic alliances as it
helps them improving the customers base in the targeted market of country. Which is an
organisation used effectively improving the international strategic alliances as it can be
used by them in determining the resources and partnership which can be used by the
chosen Organisation in order to expand their customers base by gaining more profitability
from the competitive market.
Challenges
Difficult to select right partner: as it was discussed in above points that it is necessary for
the organisation while expanding its business into while expanding its business into the
foreign market to come under a partnership with the other person in a country in which
they are planning to expanding. with reference to the first stage it can be says that it is
very difficult for the organisation to choose the right partner otherwise the company can
face several issues. Company chooses wrong partner then it will be leads to a wrong
position into the competitive market and it resulted in in a negative brand image of the
organisation into the Marketplace so that's why it can says that the organisation has to
pay more attention while selecting the right person as a partner in order to expand its
business into the competitive market at International platform. The Chosen organisation
can determine certain criteria while evaluating a person as a right partner for the firm.
Build more trust and honesty: it is the most biggest challenge which can be faced by the
organisation with respect to International strategic planning is to create more trust and
honesty into the new competitive market. As it is very II much required by the
organisation in order to attract the customers so that they can avail the products and
services which are offered by which organisation and father's the company can also come
under a partnership so that they II much required by the organisation in order to attract
the customers so that they can avail the products and services which are offered by which
organisation and father's the company can also come under a partnership so that they can
build a strong relationship (Zhang, Jiang and Noorderhaven, 2019). There are certain
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factors which must be avoided by the organisation so that they can improve the critical
situation and create a various plans in order to over come with the issues.
Suitable alternative market entry strategy
There are several recommendations which are related to the different marketing entry
strategies as it must be considered by the easyjet Airways. Some of the recommendations are
discussed below:
Export-import: it is the most effective strategy which can be used by the organisation in
order to enter into the new market. As it is the method which can be used by the company
while importing the raw materials or semifinals to goods into the other foreign locations.
It is the kind of a strategy which is not required any specific cost for installation of the
company as it only requires a specific contact between the importing and exporting
criteria of the organisation. This helps the company to improve their products and
services with respect to the desires of their targeted audience which are deciding at the
international platform.
Joint ventures: this type of strategy can be used by the organisation with the help of
specific partnership between two or more companies as such companies are dealing with
a similar product or industry so that they can help the other country to expand their
business into the foreign countries. This can be done by the help of collaboration of
various resources and capital in order to attain the common goal of the organisation into
an effective manner while working collective leaves which helps them to reduce the level
of competition in to the same Marketplace. This is also used in order to gain more
revenue from the market
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Conclusion
It can be concluded from the above report that every business organisation wants to
improve their functions of a company as it helps them to on more profitability from the
Marketplace. The report is based upon International business strategies which can be adopted by
business strategies which can be adopted by Airlines in order to expand their business into the
foreign market. It was also analysed in this report that there are several techniques and strategies
which helps the organisation while improving their market expansion such as single local
alliances, multiple local alliances, single Global alliances and also multiple global alliances
which were discussed in the report above. this is strategy can be beneficial for the organisation
while determining a specific position in the competitive market so that they can develop several
motivational levels which helps them to attain a good position into international trade. The report
was also discussed about the benefits and challenges which can be e affect the performance of
the business organisation into the International strategic alliances. There is a several lakh of
coordination wrong choice of partners and several other things which are the major challenges
faced by the organisation into the expansion of their business at international platform. There are
several benefits which can be availed by the company in order to expand their business into the
competitive market. This helps them improving the brand image in market while creating more
revenues and enhancing the customer base.
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