The use of Theory relating to Adaptation, Aggregation and Arbitrage
Introduction Globalization has brought about numerous opportunities as well as challenges in the markets today and this has become a major concern for the industries and companies of the world. It has necessitated the development of a global framework that can effectively manage these challenges and result to businesses creating a global competitive advantage. One such framework developed is the adaptation, aggregation and arbitrage commonly referred by Pankaj Ghemawat as the “AAA Triangle” framework. These three are international strategies believed to curb the challenges brought about by globalization and their application are implemented differently by the different industries. Adaptation allows for the necessary adjustments to be made by a company using several approaches so that its operation can be suitable for local markets and the local people based on their choice and preference and is considered suitable for all products. On the other hand, aggregation enables a company through various strategies to create economies of scale through the creation of regional or global business operations and at the same time remaining responsive to local markets. This strategy allows the companies and industries to access outside markets with varying demands and market prices for their products.
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