AAA Global Strategy Framework

The AAA global strategy framework is three generic approaches to create global value. This framework was developed by Pankaj Ghemawat. The three As stand for Adaptation, Aggregation and Arbitrage (Ghemawat, 2007). This framework allows the business operating at global level to adapt these strategies and attain better results.

Ghemawat socalled AAA framework offers three generic approaches to global value creation. Adaptation strategies Strategies that seek to increase revenues and market share by tailoring one or more components of a firm’s business model to suit local requirements or preferences.

Aggregation refers to a strategy where the company deploys a global strategy wherein the company tries to capitalize on economies of scale by replicating the success of its product or service from home country and tries to market this standardized product or service in the new country.