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This report is about the strategic management of two different types of industry situated in Australia. In relation to retail industry, there is two such company, one is Ally fashion and another is Best and less. In relation to the pharmaceutical industry, there are two such companies that operate in Australia. One is Giaconda and another is Gordagen. A proper analysis and evaluation are conducted in this report by using AAA (Adaptation, Aggregation, and Arbitrage) model. With this model, their criteria for strategy are studied in an effective manner.
According to Kluyver (2010), there is the existence of three generic approaches that enables in the formulation of an effective global model for strategy. Different companies use different aspects of effective strategy that helps in earning a huge profit for the company. This model contains three types of strategy which are an adaptation, aggregation, and arbitrage. Each and every strategy contributes to the progress of the company as per the given scenario. The company always tries to implement all the AAA while formulating a strategy so that operation of the company is not affected in any manner (Kluyver, 2010).
According to Barber (2015), adaptation is a type of strategy that is used by the company to enter into the local market to obtain profit from it. The company tries to make their strategies in relation to the culture or the situation following in that market. This strategy is further subdivided into five categories. They are variation, focus, externalization, design, and innovation (Barber, 2015).
Ally fashion is a fashion based retail company whose headquarter is situated in Sydney. This company is famous for clothing as well as accessories line. Its area of operation is limited to Australia (Ally Fashion, 2016). According to Joy et.al (2012), fast fashion with the ethical appeal is attracting a large number of female customers in Australia. Fast fashion is a low-cost clothing collection that helps the young consumer to adapt a larger fashion in their style. Young consumer tries to buy the trendy clothes with the minimal cost so that buying capacity is increased. This is the reason that many fashion outlets have converted their strategy to combat with the needs and desire of the young generation along with the affordable prices (Joy et.al, 2012). In relation to adaptation aspects, the company has adapted the products to deliver that are trendy and stylish which are preferred in the Australian market by women. This is the reason due to which company adopt various schemes in their strategy to sell their products at affordable prices along with attractive discounts.
Best and Less is the clothing chain that operates within Australia. The company deals with clothing as well as household linens. The company provides a wide variety of range of its product to its enormous types of customers in Australia (Best and less, 2016). In the words of Donnell et.al (2012), fashion retailers’ works on a daily basis to cope up with the demands of the market. Small scale industries try to adapt to the changes in the trend to attract a large number of customers. The biggest characteristic of the fashion industry is that they are unstable that leads to the challenges faced by the retail outlet to adapt products and services to provide as per the customer desire (Donnell, 2012). Best and fewer try to cope up with the change in fashion by adapting with the change in the fashion industry.
Pharmaceutical company in relation to adaptation
Giaconda is one of the largest pharmaceutical companies situated in Sydney. This company deals with a variety of drugs that are combined by the company to commercialize it. According to Nayak et.al (2010), Gastro retentive treatment involves drugs that are used to cure diseases in the stomach and small intestine. In the words of Rowland et.al (2012), pharmaceutical helps to cure various diseases which affect the health of the consumer. Science plays an important role in protecting the health of the people. Other than that each and every region has a specific lifestyle that affects origin of the certain type of diseases in that particular area. This is the reason that various drugs are combined to form medicines in that particular area (Rowland et.al, 2012). Giaconda focuses on making drugs in Australia to eradicate the problem of gastro retentive due to the lifestyle preferred in the country.
Gordagen is a growing pharmaceutical company that develops T3 products through innovation (Gordagen, 2016). According to Veiga et.al (2013), pharmaceutical focuses on the innovation that enables in progress in the field. Along with that it also helps in growth of this industry. In the words of Capo (2014), innovation is given priority by the pharmacist to adapt various changes for implementing an effective strategy. This is the reason that many organization tries to mend various aspects of adapting to the changes of the country of requirements (Capo, 2014).
In the words of Ramsey et.al (2010), aggregation refers to the formation of economies of scale for dealing with various changes in the market. This is done by exploiting the similar resources for the formation of new strategy without fully implementing the adaptation aspects. The main reasons for this are to extend the scope without hampering local market (Ramsey et.al, 2010).
In the words of Lambert (2014), fashion industry suffers from the fast changes of preferences and taste of the consumer. So it becomes important that a proper and effective strategy may be formulated in which the benefit of economies of scale be achieved from the industry. Due to fast change in fashion, clothes are traded in a bulk quantity that helps in reducing the cost. Apart from that fast fashions company become profitable due to piracy in designs and exploitation of labor. Each and every market segments helps in the better working that enables a better growth of the industry. It also helps in cost cutting that ultimately helps the retail industry in an effective manner (Lambert, 2014). In the words of Lynn (2011), strategies are formulated to target segment of customers in the market as it would help in trading a particular segment commodities which help in economies of scale. This is the reasons that Ally fashion target only women industry that helps them to analyse all the aspects and demands of the particular section. Apart from that company concentrate on the trading clothes in bulk quantity by providing heavy discounts to the customers which at last leads to economies of scale. On the other hand, Best and less company work on the targeting all the segments of customers by trading clothing in bulk amount. This type of trading has helped the company to reduce its costs in an effective manner. Apart from that heavy discount are also provided in bulk purchases that at last help in the better working of the company in Australia.
In the words of Artz (2010), pharmaceutical industry works on innovation. Innovation requires an enormous amount of funds for its research and development that is the most important aspect of the business. Creativity, as well as a different solution for the same problems, is required in this type of industry. It increases the cost of the product. Each and every pharmaceutical company works with the motive to provide the products within the time limit so that medicines can be used effectively and efficiently (Artz, 2010). In the words of Khalilullah (2014), the pharmaceutical company required following all the guidelines in an effective manner so that no complication may arise in future for the company. With the use of administrative aggregation, a proper and effective strategy is developed without fully adopting the measures of the local community (Khalilullah, 2014). This is the reason due to which different medicine are made by Giaconda by combining various drugs so that those drugs can be used in the Australia as there are some drugs which are banned but by combining those drugs then its usage can be made in an effective manner. On the other hand, Gordagen is also developing T3 which are regulated by the international regulation standards. Apart from that target customers segments have also increased like it deals with diabetes, pancreatic disease etc.
According to Willcocks (2016), arbitrage refers to the generic strategy to the global advantage. This is the type of strategy which considers cross-border as a segment with great advantage. In this type of strategy, a new type is formulated in which all the measures are taken into consideration in an effective manner. Arbitrage always tries to exploit the differences by not adapting the changes in the local market (Willcocks, 2016).
According to Guest (2014), the retail industry faces a problem of volatility that ultimately affects the economy. Clothing retail industry faces the maximum changes due to ‘fast change’ concept in this particular type of industry. Due to the fast-changing preferences of the customers there exist situations in which different customers prefer a different type of products. Each and every area has a different option for fashion choices which ultimately helps in better working of the organization. It is also seen that product design is translated into the multi-channel mass product due to the process of globalization. This is accomplished with proper supply chain management that helps in better arbitrage of the fashion products. Online purchase has filled the gap that has enabled in solving the problem in an effective manner (Guest, 2014). Ally Fashion is the privately owned company that run its operation within the boundary of Australia. It provides a discount to the customers via online shopping. But till now it has not used the strategy of arbitrage in its working due to non-working of cross borders. This company has not crossed borders with its future there are chances that it may be able to expand its business in an effective manner that would be beneficial for the company as it would be able to apply the strategy of arbitrage in its working. Similarly, Best and less is also running its business in Australia only. This is the only reason due to which it is also unable to implement the arbitrage strategy in its working and operations. But still, there is a scope that this situation can be overcome if proper strategy is taken into account by the company.
According to Kallianpur (2015), the pharmaceutical company works with the motive to make proper research to protect the health of the people by various innovation and technology. The company tries to work globally as all the technology is not present in the same country so with globalization there are chances that customers may be able to extend its business in an effective manner by helping various people. Due to the emerging market, there is more scope for the company to work in an effective manner and conduct its operation accordingly. There are problems that some areas of the world do not use the drugs that are used in the local country but with globalizations, there is the occurrence of strategy that enables in better working and operations. It is also seen that with new and improved strategy there are more chances for the growth and success of the pharmaceutical company. Competition is also increasing in the pharmacy industry so with the arbitrage aspects there is more scope for this type of company. The company makes various aspects that require proper detailing that is done with the help of expertise that is present with the arbitrage strategy (Kallianpur, 2015). In Giaconda, the company is making efforts for the working of commercialization of drugs along with licensing and marketing of it. It is also initiating strategies for a gastrointestinal market that would help in better working of the organization. On the other hand, Gordagen is working on commercialization of nutraceutical and pharmaceutical. It has maintained a track record for the expediting drug development. But still, the company is required to maintain efforts for using arbitrage strategy to work on the global level smoothly.
This report helps in proper analysis of the pharmaceutical and retail industry. It is seen that both the industries have different perspectives for making strategy in an effective manner. The models that are used in this report helps in the competitive analysis which defines that company method for using the approach in a proper manner in this report. Adaptation strategy is preferred by each and every company in the report while aggregation aspects are filled with the proper bridge. On the other hand arbitrage aspects are not implemented in the company as they have still not crossed the boundary.
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