Competitive Strategy Effective Business Model

Question: Describe about the Competitive Strategy for Effective Business Model. Answer: Competitive strategies of Coles following AAA Competitive strategies of an organisation help to reach to the desired goal of a company within fixed period and to retain the position of the company in the specific market. In todays competitive business world, more or less every organisation employs potential strategy makers and business experts, who design strategies in order to reduce the basic level of competitiveness within the market (Morschett et al. 2015). However, these competitive strategies are completely changing with the requirements of the consumer and their demands from the company. Ghemawats AAA competitive strategy has been proved effective for contemporary business as it helps to expand the business. AAA has been considered as an effective global strategy, which is potential enough to offer three fundamental generic approaches for value creation across the world. The important three aspects of this AAA framework consist of adaptation, aggregation and arbitrage and each of these factors play a vital role for the bu siness operation of an organisation (Motohashi 2015). Coles, a famous retailer of Australia thoroughly follows this AAA framework of global strategy in order to make a strong position in the retail industry of Australia and New Zealand. The business experts of Coles make strategies according to AAA framework. The aggregation strategies of Coles suggest achieving a perfect scale of economy and widening up the possibilities with creation of global and regional efficiency. Adaptation strategies involve maximising the sales revenue and the present market share of Coles by following the effective business models followed by Woolworths in order to know in detailed manner the actual demand of the consumers both in regional and global manner. Arbitrage suggests the basic process of exploitation of the economic condition in order to determine the competitive differences in between regional and national markets. As opined by Berry and Kaul (2015), AAA global strategy also helps to locate completely different portion with the proper maintenance of supply chain management. The business experts of Coles have developed AAA framework in order to understand the competitiveness of the retail industry of Australia. After following these competitive strategies, the market share of Coles increases by at least 13.72% in this continuing year. The annual sales revenue of this company reaches to AU$127 billion. Aldi, Woolworths and Coles hold the leading position in the retail industry of Australia only by strictly following of the competitive strategies as it denotes huge consequences, which is closely related to the revenue scale. The entire logistic operation of Coles has been geared after incorporating of AAA global strategy. According to Ghemawat (2015), AAA framework also helps an organisation to decide the ultimate options for business globalisation. Coles creates a global value with changes of the offered products in order to satisfy its consumers. Even the management has planned according to this strategy and offer different typ e of products to attract the consumers across the world, which is different from the offered products for the customers of Australia and New Zealand. Following AAA framework, the management of Coles bring variation to their offered products and produce completely new products. References Berry, H. and Kaul, A., 2015. Is There a Multinationality Effect? A Replication and Reexamination of the Multinationality-Performance Relationship.A Replication and Reexamination of the Multinationality-Performance Relationship (June 15, 2015). Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Publishing Limited. 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. Motohashi, K., 2015. Management Strategies for Global Businesses. InGlobal Business Strategy(pp. 21-40). Springer Japan.