international airlines: strategic management operations

International airlines operate in a very competitive and demanding environment. There are some airlines that operate as cost leaders. No frills cost leader airlines like Ryanair have managed to continually increase revenues and profits over the last 15 years. Restriction of flying passengers during the Covid crisis highly affected all the airlines  operations. Some of these airlines have still managed to be successful following cost leadership model despite the interruption caused by the pandemic.

 International operations

Some companies choose to operate international airlines by largely manufacturing and/or selling their products in other countries. A Company based in the UK that makes specialized components and has had customers only locally may want to expand and operate globally by creating suitable links with companies in other countries that they know will be suitable future customers. When a company needs to go international it is advisable to consult so as to choose the most suitable mode of entry in the international market.

International expansion entry modes

There are five common international expansion entry modes. International expansion is achieved through, exporting, licensing and franchising, partnering and strategic alliances, acquisitions, and establishing new, wholly owned subsidiaries, also known as greenfield ventures. Each of these modes of entering international market have its own advantages and disavantages therefore, need to evaluate their options to choose the best entry mode that suits their strategy and goals.

Corporate social responsibility

Corporate Social Responsibility is when a for-profit company willingly acts in a way that also benefits interests of the society  . This is generally seen as a positive development even in international level operations. According to GlobalWebIndex (2019), 68% of online consumers would consider not using a brand because of poor corporate social responsibility. Many companies therefore take up their corporate social responsibility to market and build reputation.

 Merger and Acquisition

Merger is combination of two companies which subsequently form a new legal entity banner under one corporate name. On the other hand, in case of acquisition, one company buys the others company outright. Companies mostly do merging or acquisition when they feel the need to grow and operate in international levels. Problems may arise during the process of mergers and acquisition hence companies should hold preliminary discussions to ease the process. Post merger, some companies grow even in international operations and become very successful while others fail.

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