Competitive Strategy Winning in Emerging Markets

Question: Discuss about the Competitive Strategy for Winning in Emerging Markets. Answer: Introduction The AAA framework is a helpful tool in the process of value creation in a global environment. It is an important tool in the globalization process that is being adopted by the organization. This paper deals with the AAA framework used by one of the most renowned travel company known as TripAdvisor.com. It provides an interactive forum concerning travel and relies on the user generated content (Xie et al. 2016). The three strategies used by the company are Aggregation, Adaptation and Arbitrage. Discussion The Aggregation strategies are being used by the companies to create efficiencies at a global level. The company aims to utilize the similarities in the different geographical cultures rather than adjusting to the cultural differences (Moran Abramson and Moran 2014). The company focuses on the value proposition factor by providing valuable user reviews regarding a particular hotel or tourist destination (Moran Abramson and Moran 2014). This helps the prospective customers to make their travel decisions. The company not only considers the geographic considerations but also takes into account other factors such as administrative, geographic, cultural and economic (Xie et al. 2016). The company has centralized operations in the U.S.A which helps them to create cost advantage. The Adaptation process is used by TripAdvisor to increase its market share and increase in the revenue generation (Khanna and Palepu 2013). It customizes its services based on the requirements of the local culture. The headquarters of TripAdvisor is located at United States of America, however, it has customers from all over the world (Xie et al. 2016). It penetrates the new markets by adapting its products as well as services to match the needs of the local population (Khanna and Palepu 2013). This includes the inclusion of reviews of the local hotels and restaurants. This makes the company acceptable among the target audiences (Khanna and Palepu 2013). The process of adaptation is done by fulfilling several criteria such as focus on particular geographies or products, variation in the products, flexible design of the operations, innovative practices and externalization of the business processes (Khanna and Palepu 2013). The Arbitrage strategy is used for the creation of global value by taking into consideration the differences in the markets. The different countries in the world have unique local tradition, customs, culture and beliefs (Narayan 2013). TripAdvisor tries to leverage these factors by presenting the traditions of one country to the people in other geographical locations (Xie et al. 2016). It is important to transfer the essence of one region to other locations (in which there are sufficient demands of the particular products or services). Fig: AAA strategies Source: Created by author Conclusion TripAdvisor tries to implement all these three strategies for ensuring global success. The company focuses more on the adaptation strategy and strives to fulfill the demands of the local population. These three strategies help the company to satisfy the needs of the global audience. It also helps the company to be successful all over the world by taking into account competitive advantage. References Khanna, T. and Palepu, K., 2013.Winning in emerging markets: A road map for strategy and execution. Harvard Business Press. Moran, R.T., Abramson, N.R. and Moran, S.V., 2014.Managing cultural differences. Routledge. Narayan, U., 2013.Dislocating cultures: Identities, traditions, and third world feminism. Routledge. Xie, K.L., Zhang, Z., Zhang, Z., Singh, A. and Lee, S.K., 2016. Effects of managerial response on consumer eWOM and hotel performance: evidence from TripAdvisor.International Journal of Contemporary Hospitality Management,28(9).