Competitive Strategy AAA-framework †Free Samples for Students

Question: Discuss about the Competitive Strategy AAA-framework. Answer: Introduction Globalization has become a major factor in the business of the modern world. The organizations in the modern world has adopted different approaches that has helped them in being sustainable globally. One of the major approaches has been identified by Pankaj Ghemawat as the AAA-framework, which stands for Adaptation, Aggregation and Arbitrage. The main objective of this study will be to analyze the global strategies that will help in efficient management of the tourism and the beverage industry. The tourism industry in Australia faces tough competition as there are a number of operators who caters to the needs of the tourists (Ghemawat 2013). The two companies of this industry need to improve the turnover and shares in the market by maximizing their operations on the local grounds. The companies have to increase their economies of scale by operating on the domestic and international level. Arbitrage will help the companies to exploit the disparities that are present in the local and the foreign market as well (Teeratansirikool et al. 2013). The beverage industry has to make strategic choices that will help them in making a degree of prioritization. This framework will help the industry in a better way. There is a possibility of making advancements on the different strategies but the industries need to keep their focus on building a competitive advantage in the market. By using the framework, it will help the industry to attain the goals and objectives that has been set by the companies. The beverage industry and particularly the two company Coca-Cola Amatil and Fosters Group will benefit by locating the different supply chains that are present in local markets for maximizing their revenues (West, Ford and Ibrahim 2015). Tourism Industry (Overseas Adventure Travel and Kensington Tours company) Beverage Industry (Coca-Cola Amatil and Fosters Group) Adaptation strategy in Tourism industry The hospitality of the tourism industry is a domain that is being recognized as sensitive because it involves more than one supplier in the form of tour operators and has a high demand of stakeholders that is the tourists. It directly creates an impact on the concerns that arises through tourism. Firms like Kensington Tours and Overseas Adventure Travel caters to the needs of the tourists in both domestic and international markets. The main aim of Overseas Adventure Travel (OAT) is to be the dominant company in the tourism industry by providing the customers with intercultural experiences that will help in creating an impact on the life of the customers. The company to a great extent depends on the macro economic cycles that is present in the industry and keeps up with the customer trends that are evolving on a constant basis (Bova 2015). It is important for the company to keep a watch on the parallel sectors as it helps in the performance of the tourism industry in a positive or a n egative way. The innovation of the products and the development of the demands on a seasonal basis plays an important factor in determining the role companies in the tourism industry. The vision of OAT is to create an atmosphere, which will help in upgrading the communication with the tourists and accepting the global standards of the industry (Fraj et al. 2015). The Kensington Tours provides custom made schemes that helps in adapting to the changes that is taking place on a daily basis in the emerging markets. It also provides unparalleled experiences to its customers. Both the companies have taken the integrated business model in their business policies, level of flexibility and partnership as the adaptation strategies that help them to meet the constant demands of the industry (Comas Mati and Seifert 2013). Adaptation strategy in Beverage industry The beverage industry in Australia is undergoing various things of differed proportions. The conditions and the complexities that are present in the market helps in the functioning and the operation of the industry. Company like Coca-Cola Amatil has aimed to make its strategies regarding the packaging and keep up with the products that are health conscious as the trends in the market is changing as far as customers are concerned (Jopp et al. 2013). The company recently launched Coke Life in the country, which is low in calorie content and contains natural flavors. The management of the company has predicted a profit of more than 100 million AUD, which also includes the measures related to cost savings over the next couple of years. The firm also wants to expand by exploring the opportunities that are present in New Zealand and the Australasian region, which will help in boosting up the sales of the products (Chopra et al. 2016). The Fosters Group in the country is also seeing a growth in the sales and the profits. Due to the effects of globalization and the economic meltdown, the consumers have changed their drinking habits in the country. The company is aiming to target the customers by introducing Carlton light, which will help in boosting up the chances of the firm to make a comeback in the market. The product will aim to target consumers who are especially women, corporates and the young customers (Lim-Camacho et al. 2016). The company aims to expand its products by acquiring the New South Wales company, which will help in increasing the market share in the country. The company has already acquired five companies in Australia and has become the major producer beer in the region (Probstl-Haider and Haider 2013). Aggregation strategy in Tourism industry The aggregation strategy helps in overcoming the differences by implementation of cross border means. The Australian tourism sector is largely dependent on the aggregation strategy that exists in the business environment. The tourism industry in Australia is divided in to small and medium scale organization that offers various packages to the consumers. OAT is focused on engaging the operations by introducing package schemes for the tourists, which includes the islands of Australia and exotic destinations like Queensland, Mackay and Great Barrier Reef (Radlo 2016). Kensington Tours on the other hand aims to introduce packages that are cost effective in the tourist destination areas such as Ayers Rock, Auckland and Sydney, Rotorua in New Zealand, which helps them in earning revenues of 4941 AUD. This helps the company to make profit in spite of the differences in the preferences of the country. OAT uses the strategies that help them in creating the economies of scale that is necessary for the company to thrive in the market (Schegelmilch 2016). The design of the products is based on the regions of its operations, which is located between the geographical boundaries that help in the creation of demand. The separation of the designs of the products depends on the cultural and the economic aspects of the regions where the company is operating. This helps the companies in gaining competitive advantage over each other respectively. This is one of the best example of aggregation strategy in the tourism industry (Porter and Ronit 2015). Aggregation strategy in Beverage industry The beverage industry is dependent on the aggregation strategy largely due to the environment in which it operates. The Coca-Cola Amatil company in the country has to execute the strategies, which will help the company in benefitting in the long run. The company has partnered with the Coco-Cola company, which will help in developing the carbonated products with the help of advancements. The company aims to expand in the domestic market by introduction of the products that will help the local customers to benefit from their products. This strategy cannot be applied in the international market and the company plans to diversify its products to gain a competitive advantage over its rivals (Surkminski 2013). Fosters is a major company in the country, which looks after the demands of a large number of consumers who are from different economic background. The aim of the firm is to target the market that is present within a specific territory of the country where it will serve to the demands of the local consumers by offering a variety of beverages. The company has to deploy various marketing strategies such as advertisement strategies and the marketing mix, which will help the company to fulfill its goal in the target market. Arbitration strategy in Tourism industry The tourism sector is dependent on the arbitration strategies that is widespread in the tourism industry. The overall success of the firm depends on these strategies. The Overseas Adventure Travel company is very efficient and they would exploit the market by giving the services to the customers at a high price, which will help them in segregating their target clients, which will lead to a substantial amount of profit generated by the tour packages (Caiazza and Ferrera 2016). Kensington Tours on the other hand, helps in manipulating the disadvantages that is present in the local industries by capitalizing on it by providing premium and better service to the customers, which helps in generation of funds for the company. The company designs its tour packages that are based on popular culture that will help in grabbing the attention of the customers. This helps the company in gaining competitive advantage over other organizations and grow steadily in the future (Rothlin and McCann 2016). Arbitration strategy in Beverage industry The beverage industry in Australia is on the verge of globalization, which is inclusive of various factors. Coca-Cola Amatil is aiming to introduce its products in the markets where the rival and global companies are not very effective. Products such as Diet Coke and Powerade aims to explore the internal markets of the regions that the company has targeted. This will give less opportunities and business prospects to the rival companies. The focus of the firm will be to control the differences in labor and capital. It will exploit the cultural side of the country and introduce cost effective products, which will attract customers not only for the price but also due to health consciousness. The alcohol market in Australia is worth 20 billion out of which beer amount to a majority of 10 billion USD (Snyman 2015). Fosters have many opportunities to increase its profits and even utilizes the shortcomings of the other beverage companies. This helps the company in targeting its market and manipulates the regions that is devoid of the alcoholic beverage market. In simple terms, the company wants its presence to be felt in that environment where it can have an advantage over other firms. Recommendations It can be recommended that in the adaptation strategy, the tourism industry will regain its business by investing in areas that have future prospects and companies like Kensington Tours will aim to offer its clients premium and luxurious services at a cheaper price. The Coca-Cola Amatil group will depend on its packaging and offer health products to the customers due to their changing preferences on a local basis. The aggregation strategy will help the tourism industry in aiming to exploit the regional and geographical aspect, which will help in the administrative and economical perspective on a global level. The Fosters group on the other hand, will implement various strategies that will help in fulfilling the goals of the organization in a particular target market. From the perspective of arbitrage, both the companies in the tourism industry will aim to take advantage of the varied cultural, administrative and economic conditions of the country. The beverage industry will aim to in troduce its operations in the target market, which does not consist of any domestic and international companies. This will help by giving them a competitive advantage in that area. Conclusion Thus, it can be concluded that the AAA-framework helps in analyzing the key marketing areas. The analysis has shown that both the industries have accepted globalization and due to the various factors, that are present in the market, the industries have adopted different business interest that will help them to serve in their domains respectively. The tourism industry aspires to accomplish its core competency on the basis of regional jargons. This is possible as both the company depend on the innovative packages, which is centered around the customers. The beverage industry is dependent mainly on its products that are cost-effective for the customers. 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