Management on International Business: A New Airline Industry in South Africa) - Essay Example

Johannesburg and Cape Town augmented their passenger travel related capability by 20% each (Elliott, 2010). The key objective of the paper is to propose appropriate choice of entry strategy based on the existing scenario to enter a new airline industry in the South Africa, by considering corporate social responsibility and characteristics of the airline industry. The study would evaluate the various entry modes to enter in a new airline industry of South Africa. The paper would also involve summative conclusion for the overall discussion.

Discussion Part I: Corporate Social Responsibility of Airline Industry The perspective of the organisations towards the sustainability of the business has changed in recent years. At present, the major objective of every organization is to act in a socially responsible manner. This sense of responsibility has evolved due to the approach of the corporate social responsibility. This approach has been adopted by the airline industry as well. Estimation has identified that the global damage towards the society due to the airline industry has been increasing for a long time. . The airline industry should reduce the increasing rate of pollution and maintain the waste management.

The airline industry should also focus on the lowering carbon emissions through carbon off-setting of per individual of the passengers. With the increasing rate of airline customers the rate of emission is also getting high (Anttila & Kretzschmar, 2010). Part I: Characteristics of Airline Industry The airline industry involves a huge amount of investment at the initial stage. It also needs the support of the government and higher authorities to decide the route to fly. The airline industry requires certain specialised workforce and technology to begin to operate.

It facilitates the world trade, the economic growth of a particular country, influences the tourism departments and affects the international investments (Stanford University, 1999). Part II Modes of Entry to a New Airline Industry There are a few modes of entry to become part of a new airline industry in South Africa such as licensing, joint venture and strategic alliance among others. Joint venture reflects the process of sharing the rewards and the risks, the market entity, the technology implementation, the government’s rules-regulations and the product development between two or more business entities.

The strategic alliance refers to the process of describing the different supportive accords between diverse firms, which include participation in the equity and research sharing. Licensing is the process of obtaining the permit of a company in the targeted market or country to be eligible to use the property of the particular country. It includes patents, trademarks and techniques of production. The Foreign Market Service Strategy (FMSS) also supports the entry to a new industry to