Competitive Strategy Aggregation in Markets

Question: Discuss about the Competitive Strategy Aggregation in Markets. Answer: Introduction: As opined by Romagnoli (2015), AAA framework can be utilized by the organizations for the development of global value. In the present business environment, it has become necessary for all the organization to focus on the development of global value in order to sustain growth in the market. Now, Etihad airline is regarded as one of the major airline organization in the entire world. For that reason, evaluation of AAA framework is very important for Etihad airline is order to increase the popularity in the global market. The AAA framework for the Etihad airline is elaborated as follows: Adaptation: Adaptation describes the strategies that organization has to implement in order to create maximum impact on the global market. It has been identified that preferences and requirements of the different economy are completely different from each other. Therefore, Etihad airline has to evaluate all the requirements of different economies in order to sustain its popularity in the market. The Etihad airline has made few adjustments in the implemented marketing strategies like price variation, promotional techniques so that it can actually influence people from different economy to avail the services of the organization (Etihad Global 2016). Promotional campaign of Etihad airline has tried to utilize differences in the culture as well as income group of the people in a particular economy. This has been done by Etihad airline so that it can actually utilize the adaptation strategy effectively. Aggregation: Aggregation refers to the strategies that organization implements in order to achieve economies of scale (Morschett, Schramm-Klein and Zentes 2015). The Etihad airline has focused on the effective utilization of aggregation strategies by standardizing the value proposition part. However, businesses strategies of Etihad airline does not depend too much on the aggregation strategies, as the organization is more focused on securing the safety of the passengers. For that reason, Etihad airline tries to utilize best possible raw materials regardless of its price so that consumers can remain fully assured regarding the quality of the services. It has been identified that Etihad airline has able to utilize high operational cost strategies due to its strong bargaining power in the market. However, Etihad airline has tried to maintain some particular standards so that it can able to maintain its position in the global market. Arbitrage: As highlighted by Todd, Beling and Scherer (2015) arbitrage focuses on bridging the differences between the markets rather than focusing on fulfilling the local requirements. For that reason, Etihad airlines strategy focuses on the creation of the global value by exploiting the market differences effectively. The Etihad airline has focused on the evaluation of the average income of the people in several economies at the time of formulating the pricing structure availing the services. For instance, Etihad airline imposed low price strategy in the economies with low average income so that more people can avail the services. On the other hand, in developed countries where per capita income is high, the Etihad airline has focused on implementing high pricing strategy in order to maximize the profit level of the organization. References: 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. Romagnoli, G., 2015. Information Aggregation in Markets with Storage. Etihad Global. 2016.Etihad Airways - Book flights and holidays. [online] Available at: https://www.etihad.com [Accessed 21 Sep. 2016]. Todd, A., Beling, P. and Scherer, W., 2015, December. Order Routing and Arbitrage Opportunities in a Multi-Market Trading Simulation. InComputational Intelligence, 2015 IEEE Symposium Series on(pp. 1774-1777). IEEE.