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    Aaa Triangle

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    Akash Katariya
    The AAA strategy document outlines three approaches to globalization: adaptation, aggregation, and arbitrage. [1] Adaptation involves tailoring products to local markets to increase revenue. [2] Aggregation seeks revenue through standardizing products and centralizing production. [3] Arbitrage exploits differences in markets by buying from low-cost areas and selling in high-price markets. The document compares the three strategies on factors like organizational structure, revenue goals, and risks to avoid.

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    Aaa Triangle

    Uploaded by

    Akash Katariya
    402 views4 pages
    The AAA strategy document outlines three approaches to globalization: adaptation, aggregation, and arbitrage. [1] Adaptation involves tailoring products to local markets to increase revenue. [2] Aggregation seeks revenue through standardizing products and centralizing production. [3] Arbitrage exploits differences in markets by buying from low-cost areas and selling in high-price markets. The document compares the three strategies on factors like organizational structure, revenue goals, and risks to avoid.

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    aaa triangle arbitration arbitrage adaptation strategy

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    The AAA strategy document outlines three approaches to globalization: adaptation, aggregation, and arbitrage. [1] Adaptation involves tailoring products to local markets to increase revenue. [2] Aggregation seeks revenue through standardizing products and centralizing production. [3] Arbitrage exploits differences in markets by buying from low-cost areas and selling in high-price markets. The document compares the three strategies on factors like organizational structure, revenue goals, and risks to avoid.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    402 views4 pages

    Aaa Triangle

    Uploaded by

    Akash Katariya
    The AAA strategy document outlines three approaches to globalization: adaptation, aggregation, and arbitrage. [1] Adaptation involves tailoring products to local markets to increase revenue. [2] Aggregation seeks revenue through standardizing products and centralizing production. [3] Arbitrage exploits differences in markets by buying from low-cost areas and selling in high-price markets. The document compares the three strategies on factors like organizational structure, revenue goals, and risks to avoid.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    AAA STRATEGY

    AAA TRIANGLE

    ADAPTATION: This is AGGREGATION : This ARBITRAGE: In this strategy


    one the most used strategy seeks to revenue neither the local market
    strategy out of the by creating regional and demand nor the bridging
    three. Those companies global efficiencies by different market. In this
    who wants to increase standardization of strategy the company
    the revenue by tailoring product. They centralize exploits the differences in
    their products with where raw material and the market i.e. it buys raw
    reference to the local land labor cost is low. material from cheaper place
    market. These Companies tend to and sells where the price is
    companies tend to influence already higher. It uses specialization
    adapt changes which established products into
    are favored mostly in the new market by
    the local area. advertising.
    The company which
    involve in a lot of R&D
    deals in aggregation.
    Adaptation Agregration Arbritrage
    Why to globalize? To seek revenue To seek revenue To seek revenue by
    from the local through exploiting market
    market economies standardization of through
    product specialization.
    Which type of Country centered Cross border Vertical or
    organization organization organization functional
    follows: organization
    How to the Companies with a Companies which Companies which
    companies lot of advertising involve a lot of are labor intensive.
    globalize: R&D.
    How to approach Addressing the Avoids the Addresses the
    corporate issue of the appearance of exploitation of
    diplomacy concern with the homogenization suppliers which are
    local market kept in and is sensitive to more prone to
    mind. public reaction. political disruption.
    What type of Too much of variety Too much of Narrowing spreads.
    extremes to be standardization
    watched for ?
    CONCLUSION

    When managers first hear about the broad strategies that make up the AAA
    triangle framework for globalization, their most common response by far is
    Lets do all three. But its not that simple. A close look at the three strategies
    reveals the differences and tensions among them. Business leaders must
    figure out which elements will meet their companies needs and prioritize
    accordingly.

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