International Business: Aviation Industry Strategic Alliances Report

This report provides a comprehensive analysis of international business strategies within the aviation industry, with a specific focus on strategic alliances like Star World. It explores the concept of international business, defining its role in facilitating global trade and economic growth. The report delves into a literature review, examining the role of strategic alliances in foreign market expansion, motivations behind their formation, and the associated benefits and challenges. It discusses various market entry tactics, including licensing agreements and mergers and acquisitions. The analysis and discussion section examines the utilization of international strategic alliances in foreign market expansion, using Star World as a case study. The report also covers the purposes behind the formation of such alliances, highlighting the advantages and disadvantages, and concludes with recommendations for future strategies within the aviation sector. The report highlights the advantages of strategic alliances, such as increased profitability, market share, and customer base, while also addressing challenges like coordination and cultural clashes. The report concludes with a summary of findings and provides recommendations for future strategies.

INTERNATIONAL BUSINESS

Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................2
INTRODUCTION.....................................................................................................................................3
LITERATURE REVIEW.........................................................................................................................3
ANALYSIS AND DISCUSSION..............................................................................................................6
CONCLUSION..........................................................................................................................................9
RECOMMENDATION...........................................................................................................................10
REFERENCES........................................................................................................................................11

EXECUTIVE SUMMARY
International business is set of activities which made companies able to conduct trade
related activities and allow to expand their businesses into abroad that is beneficial and essential
for them. Aviation industry in order to expand its venture has used Star World strategic alliance
that has returned provided a lot of advantages to sector. It has contributed to increased its
profitability, market share and customer base. It has been identified that by using chosen
strategic alliance method, industry has achieved its set objectives and got desire outcomes in
successfully builds excellent image of sector in new market.

INTRODUCTION
International business defined as process of developing cross cultural aptitude to
excellently lead in a global venture environment while opening up new ways for success. This
term consists of commercial practices that take place effectively to promote transfer of resource,
ideas, products, services and other useful as well as profitable items. International business may
occur in several formats such as movement of products from home nation to another country,
contractual contract that permits foreign companies to use item, process from other nations. The
current report is based on Aviation industry, which included in category of top customer service
sectors in the world that focus on making each passenger happy and fully satisfied after
obtaining their quality and satisfactory services. Aviation is defined as set of activities
surrounding aircraft and mechanical flight sector.
It provides continuous worldwide transportation network that makes it important for
international venture. Chosen sector contribute to generates economic progress, facilitates global
trade, and creates jobs, which support to enhance living standard of local people who are
unemployed. The assignment will explain use of global strategic alliances in foreign market
expansion and reason behind formation of particular. It will justify benefits, issues and
alternative market entry tactic.
LITERATURE REVIEW
International strategic alliance in foreign market expansion
As per Nalazek (2020), international strategic alliance plays strong role for further
foreign market expansion within aviation industry parameters to evolve on new competencies
diversely within UK global networks. Strategic alliance further adds to significant rise among
key business networks diversely, based on optimistic growth targets diversely based on
productive optimistic growth targets diversely. Foreign market expansion holds specific
knowledge and working engagement goals, to yield towards strengthened expertise targets
diversely based on significant rise scale working goals. International strategic alliance further
connects profoundly as per keen productive working expertise potentialities based on extensive
enhanced abilities, within global networks. Star World alliance has significant role in bringing
extensive diversification and untapped new strengthened rise effectively, based on significant

commercial targets dynamically. Research papers by author has also examined focus towards
functional role for examining key business goals, strengthening key determinants variedly and
also sub scaling larger strengthened competencies diversely.
However, another author Button (2020), on contrary has contradictory examination where
integral focus is also examined to bring on significant growth where there are varied other
market entry strategies also. It can be understood that other format strategies such as extensive
strengthened working benchmarks, usage of diversified new international determinants goals and
extensive focus to upgrade higher significant commercial networks can be used. Licensing
agreements, mergers and acquisitions are some of the key other dynamically evolving foreign
market expansion strategies for strengthening longer wider target market globally. This further
also heads on significant competitive expertise rise based on larger scale working avenues
extensively, for strengthened commercial networks as pet latest aviation industry demands.
Implementation of new strategies based on aviation industry determinants evolve strategic
diversity and new range of adhesive compliance, within foreign market has expanded
commercial networks rapidly.
Motivations behind formation of international strategic alliance-
As noted by Schmidt (2020), there are varied motivations behind formation of
international strategic alliance within aviation industry where UK industry has been dynamically
evolving for larger rapid engagement goals extensively. Usage of international strategic alliance
further significantly brings on rise among expansion of resources usage, diversification within
competencies diversely and further technical working expertise targets. Motivations such as
extensive economies of scale corporately further enables business to diversify based on longer
business longtivity targets, which keenly further adds to new profound growth innovatively.
Strategic alliance brings positive boost to overall competitive growth avenues extensively, based
on extensive working competencies dynamically which further adds profound productive value
variedly. Author has also examined in research papers that strategic alliance has significant role
to yield on extensive focus among key business priorities, based on competitive functional
growth goals diversely. There is entrance to new industry territories and based on specific global
competitive advancement, there is high pace targeted for strengthening competitive engagement
rapidly based on untapped targets.

` On contrary, another author Singh (2020), also examined focus towards challenging
situations and key business challenges which further international strategic alliance brings
among company’s performance development dynamically. There is shared ownership among
companies within international strategic alliance which may hinder growth avenues based on
corporate competitive targets widely. It can be further analysed that integration of new structures,
systems and distribution of power further also impacts on company’s business integrity targets
within longer time periods variedly. Strategic alliance also has challenge of fluctuating
economies and business synchronised abilities, where external competitive factors have wide
role to be analysed widely. Managing internal and external stakeholders working engagement
also becomes challenge, where companies have to further head on profound focus towards
establishing competitive new standards diversely based on extended new untapped channels.
Author has also examined that strategic alliance comes with challenges based on significant
strengthened new range of work competencies diversely, based on significant scope within
competitive global aviation industry.
Benefits and challenges of international strategic alliance-
As per the views of Göv (2020), international strategic alliance has varied types of
benefits and challenge a well which further can be analyzed on basis of varied implications, new
strengthened working engagement goals and rapid diversification goals. Benefits such as
convenient international booking among consumers, extensively has role to strengthen up
working channels diversely based on corporate competitive benchmarks. There is further benefit
evolving with expansion among international global aspects, based on strategic investments
pertaining towards competent goals diversely. Aviation industry has been evolving specifically
based on extensive channels of strengthened functional growth, where strategic alliance further
opens up new business networks diversely. Author has also examined focus towards benefits
such as extensive working expansion within commercial networks widely based on competencies
diversely, for strengthened engagement among aviation industry. Benefits analysis has further
signified focus towards determining key business connective functional abilities, based on
strengthened working engagement goals rapidly for new extended functional scope profoundly.
Star world alliance is known to be one of the widest and highly successful strategic alliance,
where varied companies have collaborated globally.

On contrary author Seo (2020), has developed strategic focus towards challenges within
international strategic alliance, which can be analyzed on basis of varied extensive competitive
new strengthened working rise where there is challenge of shared ownership among companies
which leaks commercial data. Further distribution of power, between strategic alliance also
further reduces extensive new range of working advancement dynamically based on strengthened
new requirements. Strategic alliance also brings rise on conflicts and relative locus towards
decision making parameters, channels of operative control which may further reduce functional
innovation. The challenges such as excessive competitive external business world, has to be
further focused on as per key business goals competently as per new range of connective
paradigms dynamically. Furthermore, new determinants evolving among political and economic
stability factors demand business diversity to be expanded innovatively where role of strategic
alliance hinders functional strength (Yang and et.al 2021). This has also examined key business
goals profoundly, where compliance of strategic alliance has specific challenges based on
untapped working compliance based on productive functional working optimization diversely.
Strategic alliance also correlates need to analyze varied range of business competencies as per
external business domains, and further synchronize new business goals profoundly based on
compliance fundamental targets.
According to, Nguyen, (2020) usage of Star world strategic alliance may create varied
challenges for the users such as business partners, which they efforts to deal as it may put
negative impact on their decision making and strategy formation activity. Lack of coordination is
the main challenge that stakeholders may face by using specific strategic alliance form. It may
negatively affect their current as well as further activities and practices. Without coordination
with other business partners, individual member may unable to achieve their goals and
objectives. Due to this issue among management teams, individual person that related to a
venture may suffer. Effective coordination is the key element of excellent business success
within specific market. Lack of coordination may bring several issues or crises between both
parties who may include or connect together as they use Star World alliance. It may affect their
practice and way to decision in the context of company’s growth and strategies of gaining
competitive edge. Furthermore, it can be said that clash of organizational cultures or lack of
freedom perhaps is the complicate challenge in international strategic alliance.

ANALYSIS AND DISCUSSION
Utilize of international strategic alliances in regard of foreign market expansion-
Foreign market expansion refers to process of taking ventures operations into a new
nation, where success and growth chances may accessible in bulk. In the context of this, global
strategic alliances use by many companies that has operated under particular sector and that is
aviation. Star world is the best example of alliances that several firms may use to expand their
ventures and to gain a lot of benefits through it. It creates in 1997 and may had 26 members
(Göv, 2020). It was the world’s first international airline alliance that caters easy transfers across
a wide international network together with recognition and rewards for numerous global
travelers. A group of five airlines may create this approach to innovate and provide excellent
services to passengers, with a track record of great success. With this method, a firm may enter
into new nation in order to connect, coordinate and create satisfactory services and products that
provide benefits to each member that may have their own style and distinctive culture of service.
It is a kind of aviation industry contact that connect two or more organizations together for
making their dreams achievable and accountability fulfil.
Just like this one, other approaches of international strategic alliance may exist in the
aviation world that firm use to expand venture globally and systematically. For example,
Licensing contract may define as one of those written, legal agreement between two parties
where in owner of resource gives approval to other party to utilize their business, patent,
trademark and services as well as goods. It may support to alleviate any issue related to sales,
problems of royalties and quality. With this strategic alliance, a company within aviation
industry may coordinate and collaborate with other firm that operate in similar sector but in
another nation (Cacciolatti and et.al., 2020). It allows them to conduct foreign expansion strategy
and gain several benefits through it. Furthermore, along with these two, business acquisition is
also the best form of global strategic alliance that use for purpose of acquiring power and useful
resources of other companies in term of purchasing all of their shares that provide full power of
managing venture activities. It is quite common way to expand business and enter into new
market by getting control of other ventures that run and operate into same sector. Business
merger as strategic alliance also provide similar outcome and use by large firms to combine their
business with other one which make both into a single new and powerful legal enterprise.

Purposes behind formation of Star World as specific global strategic alliance-
Aviation sector encompasses almost each element of air journey and the actions that
contribute to facilitate it. It considers as excellent contributor to international economic
prosperity, not only as an outcome of sectors boosting local economies, but also because industry
may permit to improve to global trade. It may use Star world strategic alliance, for purpose of
making business more progressive than other sectors in the corporate world that aims to grow
continually for gaining key benefits (Seo and Itoh, 2020). Within aviation sector, while operating
venture an organization may seek to get their business progress, for which they attempt a lot.
Start world alliance is the most appropriate form of method that they may use to achieve this
goal in ethical and systematic manner. It allows aviation industry to fulfill their dreams in term
of expanding business and operating under other nation where key opportunities may available.
Furthermore, not only for this purpose chosen strategy may form by aviation sector to
acquire diverse workforce or skilled people that are capable to make effective contribution in
higher success of industry and permit to gain further competitive edge, such as increase customer
base, get market access and maximize profits margin. With new nation or market, management
may get chance to hire local people who have better experience and knowledge about how to
perform in aviation industry as they may have great experience but unable to get job according to
their efficiency and capabilities or profession. It is a type of process that drive attention of
administration towards formation of Star World alliance that strengthen them to diversify their
competencies appropriately (Galvin and et.al., 2020).
With above motivations, gaining attention of new customers and enhancing their
satisfaction along with existing target market, may also include in list of reasons that drive
attempts and concentration of aviation industry towards formation of Star World as international
strategic alliance that permit them to successfully and may effectively enter into new nation. It is
not so easy for a sector to do so without having or using an effective approach just like chosen
one, because it is risky way that affect overall business progress when decision is not taken
properly and strategically. Selected method give opportunity to achieve desire results and
provide so in better way that is an amazing feature about it.
Advantages and issues of chosen alliance to partners-

It can be said that strategic alliance is nothing more than a relationship between two or
more organizations that allow both of them to work together in term of sharing useful resources
such as human resource, technological, etc. This relation may provide several advantages of
business partners that connect together through Star World alliance. It made companies able to
offer convenient ticket booking services to local people who may seek to travel from one
location to another by getting the best travel experience (Mousavi and Bossink, 2020). By
offering this service and making booking convenient for everyone at global level, aviation
industry partners may grab chance to retain their potential and new passenger forever and gain
the attention of more travel seekers that prefer air travelling instead of road trip that make their
journey too much hectic. Start World global strategic alliance may cater benefits to business
partners within aviation sector in variety of terms, such as it enables them to open new chains of
business or network through which they may grew even better than last duration of venture
success. They may obtain key advantage in term of using useful and beneficial resource in term
of customers, existing venture image in market, etc.
While obtaining varied advantages by using Star World alliance, partners may efforts to
deal with numerous challenges that affect their initiatives and expectations. Leakage of personal
data is the main challenge that may put negative impact on owners as partners negatively and
emerge issue for both of them, to keep coordinative relationship sustainable (Al-Kwifi,
Frankwick and Ahmed, 2020). It is one of those challenges that may lead to loose trust among
individual partner and chance to perform together productively and efficiently. It considers as
reason behind conflict among partners that perform in aviation industry from longer time and
seek to achieve set goals and objectives on time in sustainable and systematic way. Star World
strategic alliance may undoubtedly have certain I build issues. For example, in term of drawback
it may restrict partners to take decision individually as they both are dependent on each other,
which is not beneficial for growth and continuous success in competitive world where each
brand within same sector efforts to give tough competitive to each other.
CONCLUSION
On the basis of above discussion, it has been identified that usage of Star World strategic
alliance has provided unexpected benefits to industry and its partners. It has increased
organizational capabilities and competencies and give excellent power to gain competitive edges.

By using merger, business acquisition and other forms of global strategic alliances companies
has successfully established their ventures outlets in new market or nations as each entered into
foreign market where each factor contributed in their success and unpredicted growth.
Furthermore, from above analysis, it has been concluded that by forming Star world approach,
aviation sector has achieved their strategic aims and fulfill their mission, which is quite
important for management do obtain. Along with gaining benefits, sector and partners has
overcome the negative impact of each challenge that they had faced in the context of chosen
global strategic alliance. It has taken everything into their consideration such as from market or
economic development to business partner that enabled to take better decision and implement
tactics into practices manner that has outcomes in positive manner. By considering more
alternative options that drive their attention towards gaining further benefits.
RECOMMENDATION
 In the world of business, there are several options or alternatives exist and used by firms
or sector for aims of market entry. In term of effective and alternative strategy, aviation
industry and its management can consider direct investment. Setting up a fully settled
operation or venture into new market is quite beneficial initiative. Sector can use this
strategy as greenfield investment, which enable it to establish new facilities that
management can control individually without depending on other partners.
 While choosing market entry option, partners can take this technique into their
consideration that help gaining further and current benefits and strengthen them to
develop effective plans without making discussion with any one. It is the best and easy
way for marketing entry. Direct investment give a lot of advantages which tend to
achieve by aviation industry from so long.

REFERENCES
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