| With the economic globalization, more and more enterprises realize that it’s impossible for them to survive and develop in the competitive market on their own. The traditional Philosophy of competition is out of date. Instead more and more enterprises seek to cooperate with their rivals to achieve a win-win situation. The most common way of cooperation is to establish strategic alliance or partnership.In the airline industry with fierce competition, joining the alliance becomes a trend. The global alliance enables the member airlines to overcome the obstacle of traffic rights as well as the restraint of acquisition and merger from the governments. Member airlines can extend their network and achieve the scale of economics such as resource optimization, cost reduction. Airlines will have more passenger sources provided by their member airlines due to the connection of network. Besides, the alliance pushes to some extend the unadvanced airlines to improve themselves to come up to the standard required by the alliance. By analyzing the case of China Southern Airlines, the objective of the research is to study the development of international strategic alliance between China Southern and other airlines via the support of historical strategic alliance theories and managerial analysis tools. Furthermore, it aims to guide the direction of the strategic alliance or partnership implemented in China Southern and makes it more beneficial to the company.The main conclusions of the paper are that China Southern got a much better performance based on the strategic alliance, however, China Southern still needs to strengthen the strategic alliance, make full use of the alliance’s platform to improve itself and extend the alliance cooperation to vertical level. Furthermore, it should initiate the cooperation with partners outside the alliance to make up the deficiency of the current alliance to live up to its target of global consolidation. |
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