One among very many Global Strategic Alliances I have always been fascinated by, is the Airlines Partnerships. Originally conceived as a small-scale cooperation agreement made among very few airlines, alliances have grown into huger and more ambitious projects, becoming the world’s biggest one, in my opinion. Current three major airline alliances (One World, Sky Team and Star Alliance) bring together many airlines to offer passengers worldwide travel experience. Motivations and benefits they obtain through Global and Cross-Border Alliances are very interesting to me, just to mention a few:
and the list goes on. Effective global alliance can be among the best mechanisms to implement strategies in global markets. In a highly competitive environment, alliances present a faster and less risky route to globalization.
Certainly many difficulties arise in cross-border alliances in melding the national and corporate cultures of the parties, in overcoming, language and communication barriers (something I treated in my former article: Communication, And The World of Communication), and in building trust between the parties over how to share management processes.
It is also interesting to understand the guidelines that the alliances take into consideration to minimize potential problems, such as:
As far as point 4, it was my opinion these alliances did not have a limited life expectancy as many thought, now I am eager to see other tangible benefits they will be delivering to their passengers.