Ghemawat: Triple a Criticism
emIs the Triple A available ... 1. For any activities ? According to ghemawat,The triple A suppose to bring internationals companies to the right strategy. Hypothetically thanks to the triple A , internationals companies can optimize their international strategy and can face to country differences. Ghemawat takes a particular exemple to demonstrate that previous theory: the High technology area « one in the medical system and the other one in the IT »
THEN we wonder if those successful examples could be available for any other company in other industry. Let us try with the Luxury industry: * Adaptation: we can not customize luxury goods locally the luxury brand can lost its value. * Agregation: we can not standardize luxury goods this is the exact opposite of a definition of “LUXE”. * Arbitrage: we can not exploit differences of countries to reduce the cost generally, the luxury brand are very limited to extend its supply chain all around the world to exploit countries differences. Luxury company have to care of the image because this is what they sell.
As we can see on this previous example, the triple A is not efficient for a company which is positioning in “ differenciation” on the Matrix of Ansoff . So the triple A can be efficient depending the company’s activity.
Is the Triple A available ...
2. At any circumstances?
Ghemawat's view is too much focused on “integration” while he should mention some others importants aspect of globalisation. I think Ghemawat’s theory on strategy of internationals companies is too much based on countries profiles.
An international company should pay attention to the macro environment which means: PESTEL/ Interaction between companies/competition / Changes of world/ others Externals factors ( such as the last economic crisis or the European crises or the War somewhere, or the fact that the economic world is absolutely instable as well as Policie of countries.)
Ghemawat take
THEN we wonder if those successful examples could be available for any other company in other industry. Let us try with the Luxury industry: * Adaptation: we can not customize luxury goods locally the luxury brand can lost its value. * Agregation: we can not standardize luxury goods this is the exact opposite of a definition of “LUXE”. * Arbitrage: we can not exploit differences of countries to reduce the cost generally, the luxury brand are very limited to extend its supply chain all around the world to exploit countries differences. Luxury company have to care of the image because this is what they sell.
As we can see on this previous example, the triple A is not efficient for a company which is positioning in “ differenciation” on the Matrix of Ansoff . So the triple A can be efficient depending the company’s activity.
Is the Triple A available ...
2. At any circumstances?
Ghemawat's view is too much focused on “integration” while he should mention some others importants aspect of globalisation. I think Ghemawat’s theory on strategy of internationals companies is too much based on countries profiles.
An international company should pay attention to the macro environment which means: PESTEL/ Interaction between companies/competition / Changes of world/ others Externals factors ( such as the last economic crisis or the European crises or the War somewhere, or the fact that the economic world is absolutely instable as well as Policie of countries.)
Ghemawat take