Ghemawat AAA Global Strategy Framework

3.1 Ghemawat’s “AAA” Global Strategy Framework Ghemawat socalled AAA framework offers three generic approaches to global value creation. Adaptation—creating global value by changing one or more elements of a company’s offer to meet local requirements or preferences—is probably the most widely used global strategy.

One of the framework was identified by Ghemawat- AAA Framework in which the three As stand for Adaptation, Aggregation and Arbitrage. Adaptation Strategies: These strategies increase market share and revenue by adapting some components in a business model of a company such that it is suitable to suffice local preferences and requirements.

Example- Walmart use to sell products worldwide which have been bought from China and earn from the differences in the prices. When managers first hear about the broad strategies that make up the AAA triangle framework for globalization, their most common response by far is “Let’s do all three”. But it’s not that simple.

Ghemawat AAA Global Strategy Framework diagram