Ameco's International Strategic Alliance
(8 pages of text)
Founded in 1989, the Aircraft Maintenance and Engineering Corporation Beijing (Ameco), the earliest and largest civil aircraft maintenance enterprise in China, was a joint venture between two of the world's largest airlines: Air China Limited (Air China) and Deutsche Lufthansa AG (Lufthansa). In response to a crisis in the domestic market after 2012, Ameco decided to enter the international market. After Ameco had considered several methods for implementing this strategy, it eventually formed a successful alliance with the Lufthansa subsidiary Lufthansa Technik AG (LHT). Ameco and LHT communicated with each other to solve existing problems and produced a successful design collaboration. In 2019, while this partnership was proceeding smoothly, the general manager of the business aviation modification department needed to decide on a strategy that would help the company also succeed in the areas of market development and technical capability.
This case was designed for undergraduate- and graduate-level courses on strategic management or globalization. After working through the case and assignment questions, students will be able to do the following:
- Describe the five models firms use to enter international markets.
- Outline the applicable conditions, advantages and disadvantages, and specific implementation methods of various internationalization strategies.
- Explain how a company chooses international strategic alliance partners and alliance models.
- Identify the problems faced within an international strategic alliance, and discuss possible solutions.
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