Competitive Strategy 3M Pharmaceuticals

Question: Describe about the Competitive Strategy for 3M Pharmaceuticals. Answer: Introduction For this research essay, I would like to select Food/Beverage Industry and Pharmaceutical Industry as research industries. Along with this, I would like to pick Coca-Cola Amatil, McDonalds Australia, 3M Pharmaceuticals Pty Ltd. and Cipla Australia Pty Ltd. as research companies. Moreover, it should be noted down that, the companies Coca-Cola Amatil and McDonalds Australia are linked to Food/Beverage industry. The companies 3M Pharmaceuticals Pty Ltd and Cipla Australia Pty Ltd are related to pharmaceutical industry. On the other hand, this research essay would be beneficial to portray the Adaptation, Aggregation and Arbitrage theories or AAA framework in an effective and a more comprehensive manner. Also, the essay would also be useful to illustrate that how the selected industries and companies have used Adaptation, Aggregation and Arbitrage theories to pursuit their businesses. AAA Framework/ Adaptation, Aggregation and Arbitrage Theories In todays globalized era, most of the organizations are focusing on AAA framework or adaptation, aggregation and arbitrage theories to expand and pursuit their business in an effective and a more comprehensive manner. Along with this, the adaptation, aggregation and arbitrage theories play a significant role in order to improve the overall market position and market share of businesses in the global market (Buckley and Ghauri, 2015). Moreover, with the help of these theories, the business organizations those work in different industries become able to accomplish competitive advantages over the competitors. The adaptation, aggregation and arbitrage theories are also valuable for the business firms in order to make effective utilization of available resources and to improve organizational efficiency in an effectual and an appropriate manner (Heinecke, 2011). On the other hand, it should also be noted down that, the selected business organizations also adopt and implement the adaptation, aggregation and arbitrage theories in order to pursuit their business effectually. The below given table is helpful to understand that how these different business organizations used the adaptation, aggregation and arbitrage theories for the overall development of the businesses: Theory Name Pharmaceutical Industry Food/ Beverage Industry 3M Australia Cipla Australia Coca-Cola Amatil McDonalds Adaptation Innovation Externalization Variation Innovation Aggregation Geographic Administrative Geographic Cultural Arbitrage Improve Performance Reduce Cost Improve Performance Decline Risk On the other hand, the adaptation, aggregation and arbitrage theories those are used by the business firms are described as below: Adaptation Theory: Adaptation theory plays a significant role in order to improve market share and profitability of business organizations. Along with this, according to this theory, business firms need to modify their business models components in order to meet requirements and preferences of customers. This theory also plays an important role in the value creation of the business organizations. On the other hand, adaption theory involves a lot of methodologies and approaches for the growth and success of the business (Lee, Jeon, Kim and Kim, 2010). For case, innovation, focus, variation, design and externalization are the major approaches those are used by business industries and business firms for the overall development of the businesses. The adoption theory is widely used by Food/ Beverage Industry in order to pursuit its business in an effective and an appropriate way. At the same time, it should also be noted down that, the food beverage company Coca-Cola Amatil uses variation approach in order to fulfill the needs and wants of customers properly (CCA. 2016). In current, different food beverages companies are offering different products to their customers. For that reason, Coca-Cola Amatil also uses variation approach to meet local requirements or preferences in a proper way. Moreover, it should also be noted down that, DietCoke, Fanta, Sprite, Vox (vodka), Bisleri, Coca-Cola Vanilla, Nestea, Vodka O, Coca-Cola Zero, Sprite Zero, Lift, Kirks, Powerade, and so on are the major variants of the products that are offered by Coca-Cola Amatil to fulfill the needs and wants of customers. It means that Coca-Cola Amatil used variation method to provide unique products and to create unique image in the eyes of its customers (Tihanyi, Pedersen, Devinney and Banalieva, 2015). Apart from this, Coca-Cola Amatil also uses variation approach to attract new cust omers and to retain existing customers of all the age groups in an effective and a significant manner. On the other hand, it should also be noted down that, McDonalds Australia also focuses on adaption strategy to pursuit its business in an effective way. McDonalds uses innovation adaptation approach to accomplish its goals objective and to accomplish competitive advantages in a specified time period. McDonalds Australia makes a lot of efforts to maintain innovation within the company (McDonald's Australia. 2016). Moreover, it should also be noted down that McDonalds is continuously offering innovative products and services to its customers. McDonalds Australia uses innovative promotional strategies to promote its products or services in the marketplace. In addition to this, McDonalds also focuses on the innovative product designs in order to attract more and more customers for the growth and success of the organization. The innovation approach of adaption theory plays a critical role to improve market position, market share, productivity, and profitability and to offer competitive a dvantages to McDonalds Australia (Gooderham, Gooderham and Grgaard, 2013). Along with this, 3M Pharmaceuticals Pty Ltd or 3M Australia also uses innovation adaption approach in order to pursuit its business in the market. It is because of the Australian market mainly focuses on continual improvement as well as incremental innovation (3M Australia. 2016). For that reason, innovation is essential in order to survive in todays more complex and competitive business era. Moreover, with the help of innovation approach, 3M Australia makes a lot of efforts to improve and maintain innovation in its products/services. 3M Australia also modifies the components of its business model to meet local requirements or preferences in a proper way (Hubbard, Rice and Galvin, 2014). On the other hand, it should also be noted down that, Cipla Australia Pty Ltd adopts and implements externalization strategy to accomplish the goals and objectives of the business. Moreover, with the help of this strategy, Cipla Australia focuses on strategic alliances, networking, and franchises to fulfill local requirements and to reduce costs or risks related to business in an effective and a more comprehensive manner (Cipla Australia Pty Ltd. 2016). On the whole, it can be said that, adaptation strategy is used by business firms to pursue the business and to improve market position in the global marketplace. Aggregation Theory: Aggregation theory plays a critical role to accomplish economies of scale or scope all the way through creating regional or global efficiencies. Aggregation theory focuses on standardization and value proposition to pursuit business in an effective and a significant manner. Along with this, geographic, economic, cultural, and administrative are the major approaches that come under the aggregation theory (Morschett, Schramm-Klein and Zentes, 2015). Moreover, different business firms use different approaches of aggregation theory to accomplish competitive advantages effectively. Along with this, it should be noted down that, Coca-Cola Amatil uses geographic approach in order to retain all the customers in a proper way. Also, with the help of this, Coca-Cola is able to locate its plants and stores in the different geographical locations. The geographic approach plays a significant role to provide competitive advantages and to improve market share as well as position of the firm (Mauri and de Figueiredo, 2012). On the other hand, McDonalds Australia adopts and implements cultural approach to fulfill the needs and wants of the different cultural people. The cultural aggregation approach is also beneficial to reduce the costs and to improve the revenues of McDonalds. Moreover, with the help of cultural approach, McDonalds becomes able to understand the tastes and preferences of its customers and also alters the components of business model to meet the requirements or preferences of the customers. On the other hand, it should also be noted down that, pharmaceutical industry or companies mainly focus on administrative and geographic approaches to pursuit their businesses in the international market. For example, 3M Australia focuses on geographic aggregation approach to place its stores and plants in different geographical areas. Moreover, with the help of this approach, 3M Australia also building strategic partnerships with local customers and partners in order to develop its unique image in the minds of customers (Jha, Dhanaraj and Krishnan, 2015). Apart from this, Cipla Australia uses administrative aggregation approach in order to establish its new outlets in different geographical locations in order to target more customers. Also, with the help of this strategy, Cipla Australia become able to develop strong chains to attract new customers and to retain existing customers in an effective and a more comprehensive manner. In general, it can be said that, aggregation strategy is also used by business organizations in order to improve their position in the international market. Arbitrage Theory: Arbitrage theory illustrates economic and other differences between regional or national markets. This theory also plays a significant role to order to establish separate parts of the supply chain in diverse places. This strategy is essential to create global advantages for business organizations. Along with this, performance improvement, cost reduction, risk minimization, etc. are the major arbitrage approaches or strategies that are implemented by business organization to achieve competitive advantages and to improve organizational efficiency in an effective and an appropriate manner (JovanoviĆ¡, TodoroviĆ¡ and Komazec, n.a.). Moreover, the pharmaceutical industry and food/beverage industry also use arbitrage theory to expand their businesses at the global level. Along with this, it should be noted down that, Coca-Cola Amatil used performance improvement arbitrage approach to expand its business in different geographical areas. Moreover, with the help of this ap proach, Coca-Cola becomes able to improve its overall performance and market position in an effective way. On the other hand, McDonalds Australia uses risk minimization strategy in order to reduce different operational and administrative costs properly. Also, by using this approach, McDonalds established separate parts of its supply chain in various places. This strategy is also beneficial for the firm to reduce added costs and to improve marketability goodwill at the global level (Ramsey, Alvim, Forteza and Micheloni, 2010). Along with this, 3M Australia also used performance improvement arbitrage approach to improve organizational performance and effectiveness in an effective way. This approach is also beneficial for 3M to establish supply chains in different geographic locations in order to target more customers. Moreover, with the help of this approach, 3M become able to improve its performance in both local and global market. Apart from this, Cipla Australia used cost reduction arbitrage strategy to produce goods service at lower costs. For case, with the help of this approach, Cipla become able to utilize the available resources and reduce costs of products effectively. The firm also becomes able to develop strong relationship with the local suppliers to improve its bargaining power and to offer products to customers at a very lower cost (Outterson, 2013). Also, this strategy is also beneficial for the firm in order to identify and evaluate supply chains and market risks in an appropriate way. In a ddition, with the help of this approach, Cipla become successful to differentiate itself from competitors. Hence, it can be said that, business organizations adopt and implement adaptation, aggregation and arbitrage theories to pursuit their businesses in todays competitive business environment. Conclusion On the premises of the above discussion, it can be assumed that, AAA framework (Adaptation, Aggregation and Arbitrage) is valuable for the growth and success of the business organizations. Moreover, it is also observed that, business firms must adopt and implement adaptation, aggregation and arbitrage theories to pursuit of their business in an effective and an appropriate manner. Along with this, it is also scrutinized that, with the help of these theories, business firms would be able to maintain their reputation and to improve their market positions in the international marketplace. In conclusion, it can be said that, in order to accomplish competitive advantages and long term profits, business companies must adopt and implement these theories in an effective and a proper manner. References 3M Australia. (2016). About Us. Available At: https://www.3m.com.au/3M/en_AU/company-au/?WT.mc_id=www.3m.com.au [Accessed On: 6th Sep. 2016] Buckley, P.J. and Ghauri, P.N. (2015). International Business Strategy: Theory and Practice. NY: Routledge. CCA. (2016). About Us. Available At: https://www.ccamatil.com/ [Accessed On: 6th Sep. 2016] Cipla Australia Pty Ltd. (2016). About Us. Available At: https://www.cipla.com/en/australia.html [Accessed On: 6th Sep. 2016]. Gooderham, P.N., Gooderham, P.N. and Grgaard, B. (2013). International Management: Theory and Practice. UK: Edward Elgar Publishing. MC Heinecke, P. (2011). Success Factors of Regional Strategies for Multinational Corporations: Appropriate Degrees of Management Autonomy and Product Adaptation. USA: Springer Science Business Media. Hubbard, G., Rice, J. and Galvin, P. (2014). Strategic Management. Australia: Pearson Australia. 3M Jha, S., Dhanaraj, C. and Krishnan, R. (2015). HOW DOES MULTINATIONAL RD EVOLVE IN EMERGING MARKETS? Available At: https://www.imd.org/research/publications/upload/2015-2-How-Does-Multinational-RandD-Evolve-in-Emerging-Markets-13-04-15.pdf JovanoviĆ¡, M., TodoroviĆ¡, I. and Komazec, S. (n.a.). THE NEED FOR A MULTIDISCIPLINARY APPROACH IN DEVELOPING AND IMPLEMENTING A GLOBAL STRATEGY. Econophysics, Sociophysics Other Multidisciplinary Sciences Journal (ESMSJ) Staff, p.26. Lee, S.H., Jeon, R.K., Kim, J.H. and Kim, J.J. (2010). Strategies for developing countries to expand their shares in the global construction market: phase-based SWOT and AAA analyses of Korea. Journal of Construction Engineering and Management, 137(6), pp.460-470. Mauri, A.J. and de Figueiredo, J.N. (2012). Strategic patterns of internationalization and performance variability: effects of US-based MNC cross-border dispersion, integration, and outsourcing. Journal of International Management, 18(1), pp.38-51. McDonald's Australia. (2016). About Maccas. [Online]. Available at: https://mcdonalds.com.au/about-maccas [Accessed On: 6th Sep. 2016]. Morschett, D., Schramm-Klein, H. and Zentes, J. (2015). Strategic International Management: Text and Cases. USA: Springer. Outterson, K. (2013). Pharmaceutical Arbitrage: balancing access and innovation in international prescription drug markets. Yale Journal of Health Policy, Law, and Ethics, 5(1), p.4. Ramsey, J.R., Alvim, F., Forteza, J.H. and Micheloni, J. (2010). International value creation: An alternative model for Latin American Multinationals. GCG: Revista de Globalizacin, Competitividad and Gobernabilidad, 4(3), pp.62-83. Tihanyi, L., Pedersen, T., Devinney, T.M. and Banalieva, E. (2015). Emerging Economies and Multinational Enterprises. UK: Emerald Group Publishing.