Adaptation, Aggregation, Arbitrate Theories By Companies To Pursue Business (Essay Sample)

USE OF ADAPTATION, AGGREGATION AND ARBITRATE THEORIES BY COMPANIES TO PURSUE BUSINESS
INDUSTRIES: COMPUTER AND PHARMACEUTICAL INDUSTRIES
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Summary
The main aim of this research is to investigate the market philosophy of Arbitrate, Aggregation and Adaptation (AAA) as it has been depicted by the experts of management. The AAA factors have an effect or even impact on the performance of nay firm relating to the marketing dynamics. The environment of business has given a range of paraphernalia and performance that are in most cases in line with the model of AAA. When it comes to marketing prospective this is a crucial factor. The organizations are supposed to be conversant with the ethos and perspectives of different market ranges which in the end usually have an influence on the appearance of any firm on a large scale. The discussion will therefore look at how the various firms operate indifferent industries and how the AAA theories affect the business performance. The industries for discussion are pharmaceutical and computer industries.
Introduction
All the global strategies operate on one main objective which is to ensure any variations or rather differences that may come up in the global market are managed in an efficient way. From the report here in a framework which is new and its called AAA i.e. arbitration, aggregation and adaptation model is devised so as to identify and understand the problems related to adaptation, aggregation and arbitration (Porter and Ronit, p 421). With adaptation means many organizations focus on improving the market shares and revenues by ensuring their local relevance is fully maximized. The economies of scale are delivered by aggregation through creation of both regional and global operations. Therefore the aim of arbitrate is to take full exploitation of any differences that could be in existence in the business market both nationally and regionally.
Many companies are therefore supposed to draw from all the A’s as much as possible and so the framework used should be the same when it comes to developing a summary of a scorecard. This therefore gives an indication on how many companies are supposed to operate in the global business world (Ghemawat, p 95). To keep up with the known fact, any choice that is strategic needs a degree of prioritization that is strategic with a framework that is of great assistance. Progress can be made on many strategies in an easy way but organizations have in most cases focused on those that specifically build an advantageous competition in the market (Sharp, Bergh and Li, p 54). A detailed account therefore is discussed here in to give an explanation of how the models of adaptation, aggregation and arbitration can be implemented and how some firms in the pharmaceutical and computer industry can make use of these theories to attain the objectives and goals of the organizations.
Discussion
Ghemawat was the first individual to promulgate the three AAA global framework strategies which has three approaches of ensuring value creation in a global perspective. In this strategy the adaptation ones ensures market shares and revenues are increased through usage of components related to business models that are more than one and fit within the bill for as far as requirements and preferences that are local are concerned (Ghemawat, p 18). For aggregation, the economies of scale and scope have to be achieved through ensuring efficiencies that are both global and local are achieved. This therefore ensures that the portion of value creation as well as production and development processes which are significant are standardized (Ghemawat, p 34). Arbitrate is then finally taken as one of the tools or medium in which economic and other divergences are exploited and that they are present in regional and national business markets through having separate parts of the supply chain being located in different places.
Use of AAA theories in the computer industry
For the computer industry to survive well and be competitive in the global market any firm dealing in this business/ industry has to embrace the use of these three theories.
Implementation of adaptation strategy in computer industry (Dell and cannon computer companies)
This strategy is very relevant for the two companies since there are many companies dealing in computer hardware and software and therefore to make their brands more marketable by marinating customer base and attracting more customers then this strategy can be used through brand adaptation which needs one to retool a good number of topographical, visual and even elements relating to messaging. For instance their brand names can be changed to a foreign language in which this name has some correspondence to an unflattering or a word that does not damage the brand. The name can also correspond to an idiomatic usage in the same language that is foreign (Bova, p 42). This is because the marketing messages for the same brand may work well in one region but fail badly in another region. Hence the need for diversity to suit the local clients in the market the two firms would like to venture.
The firms can also simply reposition their brands in the efforts of convincing people in their various markets the relevance of their brands in their lives. When it comes to reposition then substantive changes have to be involved in what the computer companies are selling plus the benefits and promises that they make to their clients. For example Canon Company has made it their mandate to advertise their cameras in different regions by capturing geographical features from different regions and using them to market their cameras. Cameras sold in Africa come with adverts capturing nature’s beauty of Africa and this is done differently in another region outside Africa (Rothlin and McCann, p 77). Dell has also made changes to its support delivery through introduction of interaction touch points for their clients for instance the 2020 customers and mostly children should get ‘non-touch’ services so that they get minimal human interaction.
Use of adaptation strategy in pharmaceutical industry (Bayer and GlaxoSmithKline)
This strategy can be achieved in the pharmaceutical industry using the product adaptation idea. A market that is new is likely to have a favorable response to a branding message but not the products of a business. These two companies have fought this problem by altering and also developing products that are incorporating the specific needs of their clients. For example Bayer industry which deals in agricultural business that is centered at pest control has constantly been working with different researchers to formulate pesticides that are more specific in pest target that the broad spectrum ones (Caiazza and Ferrara, p 400). This ensures the needs of their clients are met with limited impacts on the environment. The same technique has been used by GlaxoSmithKline medicine and Drug Company to make different modifications on various drugs for target parasites in the human body. This strategy has ensured that the two pharmaceutical companies remain top in service and product delivery for many years.
Use of aggregation strategy in computer industry (dell and canon companies)
The aggregate strategy ensures that differences are overcome through implementation of means that are cross border related. These techniques operate on one objective which is evaluation and exploitation of similarities which create scales of economy. Any given company can choose to use the level, case or mixed aggregate strategy. For example canon and dell computer companies have used the chase form of aggregation strategy which has worked for their good. In this strategy the companies have focused on the use of fewer number of service providers which has in the long run saved them good amount of money (Ghemawat, p 3). In this strategy the two companies have tried to ensure there is a match between client demands and the service capacity from one time to the other. Flexibility has been the key factor of their success in using this chase strategy. Making use of the current technology has ensured success of this strategy. For instance instead of having a huge labor force in the industry the two companies are cutting down on use of human resource into solving most issues online. In this regard Dell Company has created social media listening command center where the company can get feedback from customers in real time through social media conversations (Chopra, Sachdeva and Bhardwaj, p 158).
Use of aggregation strategy in pharmaceutical industry (Bayer and GlaxoSmithKline)
These two pharmaceutical companies have been able to make use of level form of aggregation strategy considering the kind of business they are engaged with (Radlo, p 136). Most of these products have limited time of use or rather shelf life and therefore to deal with losses that come with such expirations the level strategy has worked well for the two. They have aimed at ensuring the product production rates are even. This strategy has allowed the companies to ensure the level of output is maintained at a constant rate and the demands are still met. They have therefore managed to produce exactly what is needed having studied the market demand levels. A given drug or pesticide is produced only depending on the extent or prevalence of the target disease or pest (Azar and Drogendijk, p 205). For instance with GlaxoSmithKline company the amount of malarial drugs produced annually cannot be same as those produced to treat yellow fever disease. The tow diseases have different prevalence rates and thus the drug production rate and number is also different. The same technique applies to Bayer Company. The basis of this strategy is to ensure the companies do not produce products in excess of the market demands.
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