Ghemawat’s “AAA” Global Strategy Framework

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Ghemawat so-called AAA framework offers three generic approaches to global value creation. Adaptation strategies seek to increase revenues and market share by tailoring one or more components of a company’s business model to suit local requirements or preferences. Aggregationstrategies focus on achieving economies of scale or scope by creating regional or global efficiencies; they typically involve standardizing a significant portion of the value proposition and grouping together development and production processes. Arbitrageis about exploiting economic or other differences between national or regional markets, usually by locating separate parts of the supply chain in different places.