Global Competitive Strategy: AAA Model For Adaptation, Aggregation, And Arbitration In Car Industry And White Goods Industry In Australia

Introduction to Global Competitive Strategy and AAA Model

The primary aim of any global competitive strategy is managing the differences or variations in the industry efficiently which may stem up within the global market. This study will discuss the strategy framework AAA model or the Adaption, Aggregation, Arbitration that may have a huge impact on the performance of the company within the dynamics of the international market place. The business environment generally offers the companies a varied range of complications which have been captured by the AAA framework (Ghemawat 2015). While considering the framework, it has been indicated that through the Adaption strategy the companies tend to develop their market share and the revenues through the process of maximizing the domestic relevance. At the same time, the Aggregation strategy tries to bring the economy of scale while creating the domestic and international operation. In addition to that the Arbitrage strategy focuses on exploiting the disproportions that is in the domestic and international market spectrum. As now most of the global organizations are seen to be utilizing this framework for the further development of their functions within the business environment (Schlegelmilch 2016). The choice of strategies also calls for a considerable degree of prioritizing the activities and this framework can assist the companies with that. Moreover the companies generally aim to have a competitive edge within the market by using several strategies for further progress. This study, therefore, aims to explain the implementation of the Adaptation, Aggregation and Arbitrage strategies and define how the companies in the car industry and white goods industry in Australia can use the framework for attaining the organizational goals and objectives.

 The AAA framework has been propagated by Ghemawat that tends to approach three of the strategic distributions focusing on the international value creation. As globalization has influenced each sector of the domestic and international markets, the consumers tend to take full advantage of the international economy.

The car industry or the automotive industry in Australia has been first implemented with Ford Motor Company of Australia when the first care has been designed by an Australian in 1948. The country is mostly known for designing the large sized cars and passenger vehicles. However, the industry has been dominated by the exported cars from Europe and Asia lately. Considering the market facts of the year 2015, the cars which are designed in the country are mostly manufactured by Holdren, General Motors and other, while Toyota Australia is seen to manufacture the domestic variants of the global models of the company. Holden, throughout the years, has offered diverse range of cars after collaborating with other companies within the domestic market. As the trends within the industry do not indicate to a very bright future, the companies are now mostly learning regarding the parallel sectors which can play a significant role in the future performance of the car industry. The organizations are mostly dependent on the macroeconomic cycle within the industry that keeps the customer trend. With the development along with the seasonal development of the customer trends, innovation of products, the companies can improve their performance within the industry (Pedersen et al. 2014). Even though Toyota is a Japanese company, it has been manufacturing sports car and performing other business operations in Australia since 1963 (Toyota Australia: 2017). If both the companies adopt the promising changes in the international and domestic market they will be able to deliver a customized experienced to the clients. In addition to that if both the companies get involved with the integrated business model with sufficient flexibility and partnerships as the model of adaption strategy suggests, they can meet the demands of the domestic consumers.

Car Industry in Australia and Implementation of AAA Model Strategies

The adaption strategies also have five variants such as focus, variation, design, externalization and innovation. These subcategories generally involves the adjustments a firm makes within the industry in terms of positioning the business, implementation of policies and regarding other expectations for success (Truong and Trück 2016). Analyzing the while goods industry in Australia it can be seen that the market conditions has been quite tough for the last five years. Both the companies Fujitsu and Asko primarily focus on the initiation of the strategies regarding offering products that are safer for the consumers and the improving the packaging of the goods. In this way the companies are trying to align with the consumer trends as the centricity of the consumers are concerned. Fujitsu is also planning to expand in New Zealand along with other Australian territories that may boost up the sales of the organization. In the light of the financial slow down and the impact of globalization within each sector of the regular life, the consumers tend to alter their life styles and move towards the betterment (Nelson 2016). Therefore the white goods industry has a possibility of attaining more business within the next five years. The firms are also planning to divide their consumers within target segments so that it can improve the business of the firm. The products of this industry are basically the home appliances which would never go out of the market. Therefore with the further adaption of the strategies the firms may be able to acquire a good market share in the future.

The Aggregation strategy is primarily associated with defeating all the differences with the implementation of the international means. The main goal of this strategy is to examine and utilize the similarities for creating the economy of scale. The car industry of Australia is entirely dependent on the aggregation strategies in the current business scenario. The entire industry is now mostly dependent on the small and medium companies that tend to fulfill the demands of the clients along with the foreign companies. Holden may implement a better packaging for the cars initially along with expanding the distribution chain of the company to the other Australian territories (Jha, Dhanaraj and Krishnan 2014). As Toyota Australia is concerned, it may also aim to introduce the cars that are cost effective; therefore it can attract a variety of clients from different market segments. Expanding the distribution scale may be helpful for the industry as it has a possibility of generating more sales and revenue for the companies. The companies may also segregate the design depending on the economic and cultural aspect of the different market segments (Holden.com.au. 2017). Moreover as both the companies tend to deal with the regulatory needs of different countries, it has the possibility of gaining the competitive advantage in the market of Australia and the other Australian territories as well.

White Goods Industry in Australia and Implementation of AAA Model Strategies

The white goods industry in Australia is also dependent on the aggregation strategy with the market place. Fujitsu now requires the execution of the policies that can gather more revenues and will be beneficial for the company in the long run (Böhringer, Rutherford and Springmann 2015). The company is also planning to merge with the other white goods manufacturer companies for developing more advanced products that may ease the regular lives of the consumers. It will also aim capturing the regional market through a varied range of products. However, both Asko and Fujitsu should remind that the marketing and advertizing strategies should be aimed in fulfilling the organizational objectives. However, a similar strategy cannot be implemented in all the regions that the companies are planning to expand. Therefore the organizations within the industry should come up with personalized and customized strategies that may help them to gather more revenues. Asko is a major entity within the white goods industry of Australia and it caters a huge segment of the market regardless of financial background of the consumers (Asko.com.au. 2017). Therefore now the company will aim the higher scale market segment as it develops and improves its products by merging and expanding in the Australian territories. However, it should also be noted that the companies may alter some of the strategies on the basis of the financial abilities of the target market.

The Arbitration strategy refers to the medium that tends to exploit the financial and the other deviations that exist within the regional markets especially focusing on placing the different segments of the supply chain at different places (Ghemawat 2015). The success of any company in the automotive industry generally depends on the arbitrage strategy. Within this industry both the Holden and Toyota Australia now aiming to exploit the segments in the market so that they can provide the products to the customers at a high price to the higher net worth consumers as they are planning to generate more considerable revenues for the organization. As the situation of the automotive industry is not favorable for the organizations, the arbitration strategies are to help them in gathering more profit. In a similar way Toyota is also planning to gain more profit from the regional market and offering a better service for their premium client segment. The firm is planning to introduce more innovative features in their cars and target the higher scale clients along with offering them exotic schemes for their cars. These strategies may empower the companies with offering them a competitive edge within the market and it may improve the current situation of the Australian automotive industry.

Aggregation Strategy and Its Impact on Car Industry and White Goods Industry in Australia

The white goods industry in Australia has been globalized years ago and the globalization factor had entail over various factors. Now the companies Asko and Fujitsu are planning to introduce more products that are high quality and targeting the high income market segment in the other regions and the other Australian territories. Asko is introducing home appliances with more innovations that are to change the lives of the consumers in a better way within the regions which had lacked business opportunities and prospects before. The company will be focusing on controlling the cost of labor and capital (Truong and Trück 2016). Therefore it will introduce more cost effective items so that the higher market segment gets attracted towards the products of the company. Similarly the other company Fujitsu is also planning to pitch its products to the Australian territories and the other geographical areas where the demand has be very little previously. Therefore it is planning to make its presence to be felt within the new business environment for gaining advantage within the market place.

 Conclusion

 From the analysis of the marketing facets with the AAA framework in the context of the automotive or car industry and white goods industry in Australia, it can be understood that both the industries are about to accept the globalization and they are to pursue various business interests. The companies are also planning to gain revenues from the regional market as well. As a matter of fact, both the industries are facing a tough time for last few years therefore adopting these strategies would exploit the regional markets considering the further development and profitability in the market.

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