Competitive Strategy AAA Framework of the Food Industry

Question: Discuss about theCompetitive Strategyfor AAA Framework of the Food Industry. Answer: Discussion: AAA Framework of the Food Industry: Any organization that aims to achieve global value creation must choose to consider the AAA framework as introduced by the eminent economist Pankaj Ghemawat. The food industry of Australia is an important industry that contributes an enormous share of revenue through its steady growth over the last few decades, and hence the report first analyses the AAA strategy adopted by the two companies of this industry- Bakers Delight and Pie Face. Adaptation: Although Bakers Delight is an Australia owned industry, it has swiftly expanded to other foreign locations, such as New Zealand and Canada. Hence, the organization had to ensure that it is capable of introducing changes, and revising its products and service, while dealing with the consumers of a foreign market. It is to be noted that in Australia, the organization produces rolls, buns and ordinary pizzas, and yet keeping in mind, the natural love of the New Zealanders for pork, meat and mutton bird, the New Zealand stores of the company produces tasty buns and rolls stuffed with meat and fish inside. Again, the same the organization offers too many options on the sandwich products while serving the Canadian consumers. Again, Pie Face the Australian organization that specializes in the sale of coffee and pies, offers and introduces a variety of flavoured coffee drinks in New York, considering the natural love of the consumers (Morschett et al. 2015). Aggregation: As a part of introducing economies of scale, Bakers Delight has already centralized its production in a few strategically located places of Canada and New Zealand so that it is able to create global competitive advantage for itself. Again, Pie Face has recently employed a few New York residents for serving the consumers of the nation, in a more effective way. Understanding the language, choice and preference of the consumers, is highly important and hence the organization introduced the strategy. Again, Pie Face has discreetly chosen New York for expansion, as it knows that the food culture of Australia and New York is quite alike (Ario 2015). Arbitrage: Exploiting the cultural, geographic or economic difference in a foreign market is important. The labour cost, and manufacturing cost in New Zealand is comparatively cheaper, and this is the reason why Bakers Delight had set up its stores in New Zealand, and most importantly instead of utilizing the existent workforce of Australia, for the production process, has hired fresh workforce in New Zealand. Again, Pie Face already is encountering a fierce competition in its home country, Australia, and hence fond it discreet to invest in countries like New York, which has less competition in the pie industry in comparison to the huge demand in the consumer market. Hence, the bargaining power of the consumers of Pie Face is relatively much lower in New York (Jha et al. 2015). AAA Framework in the Pharmaceutical Industry: The pharmaceutical industries of Australia are a huge industry dealing with generic medicine companies, biotechnology firms, bio-medical research firms and many more. The two important industries- Biopharm Australia and Sigma Pharmaceuticals Limited, are being considered here. Adaptation: While entering Algeria and retaining its position in a foreign nation, Biopharm Australia might have to encounter much difficulty, and hence the organization has rightly chosen to enter partnership agreement with Cipla, that will collaborate with the organization in the manufacturing process. Again, Sigma Pharmaceuticals Limited employs the strategic alliance policy for drug development and testing methods in UK (Brunheroto and Leme 2014) Aggregation: BiopharmAustralia, has expanded itself in a variety of countries, including Ukraine and Russia, and the reason behind the same is that it reduces the operational cost and manufacturing cost of the organization. Biopharm Australia, hence has decided to focus more on markets of the developing nations, instead of the European market, known for expensive labour force. Again, Sigma Pharmaceuticals Limited has expanded to UK, as getting its licence to market its new drugs in UK, offers the company to get the license to distribute the products all over Europe (Ghemawat 2015). Arbitrage: As far as Biopharm Australia is concerned, the organization creates its global advantage by employing the method of outsourcing. The organization is improving its collaboration with foreign nations, such as Canada so that the medical experts of these countries can interpret the medical research reports at a cheaper cost. Again, Sigma Pharmaceuticals Limited is rightly exploiting the wider scope and greater opportunity for Research and Development activities, available at US, and hence has expanded itself over there. While both the organizations depend on the non-European nations for the outsourcing service, both the firms boost their innovation of products by availing the R D facilities available in the European areas (Ghemawat 2014). Conclusion: Global trade can largely benefit an organization, but it should be remembered that the organization must be able to employ an effective and most suitable business model that suits the requirements, preferences and demands of a foreign consumer market. Reference List: Ario, A., 2015. Semiglobalization: A Relevant Reality. InEmerging Economies and Multinational Enterprises(pp. 35-42). Emerald Group Publishing Limited. Brunheroto, A. and Leme, S.M., 2014. Revista CONTEDO, Vol. 6, No 1 (2014).Revista CONTEDO,6(1). Ghemawat, P., 2014. Arbitrage Strategies.Unpublished Globalization Note Series, University of Navarra, IESE Business School in Barcelona, Spain. Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Jha, S., Dhanaraj, C. and Krishnan, R., 2014, January. MNE RD in Emerging Markets: Arbitrage, Adaptation Aggregation in Global Innovation Networks. InAcademy of Management Proceedings(Vol. 2014, No. 1, p. 17650).Academy of Management. Morschett, D., Schramm-Klein, H. and Zentes, J., 2015.The Integration/Responsiveness-and the AAA-Frameworks.InStrategic International Management(pp. 25-49).Springer Fachmedien Wiesbaden.