AAA Triangle (A Corporate Strategy)

Strategy is the key to success of a company. According to Gavetti G and Rivkin J.W, “the heart of any company’s strategy is what choose to do and not do.” A lot of models are given by the legend of strategy makers. AAA triangle is one of them. AAA triangle was introduced by Pankaj Ghemawat, professor of IESE Business School in Barcelona, Spain and Harvard Business School in Boston.

Adaptation finds out more revenue and market share through the local relevance. Organizations develop their product customized to the specific country. They may change their management policy in terms of branch management and give high degree of autonomy to the branch manager. Organizations can react quickly during the change of local market trend or other business landscape. In Canada, No Frills are using this strategy mostly.

Aggregation works for creating regional and global operation. When organizations become able to establish their products, they need to use this strategy for further growth. They can expand their business by acquiring new business via amalgamation, opening new branch and program etc.  In Canada, Virgin mobile is currently using this type of strategy.

Arbitrage maintains the supply chain. It mostly focuses on cost by exploring economic difference. Operating cost is the most typical example. Organization will operate their factories wherever they will find lower labor cost. Apple is using this type of strategy to save their cost.

Organizations which can use all three strategies at a time, will get the ultimate benefit. But, it may rarely possible to implement all strategies together due to resources availability and nature of business. It is recommended that organization will do their SWOT (Strength, Weakness, Opportunities & Threats) analysis before adapting any of these strategies.  

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