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3: Generic Strategies for Global Value Creation

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    In this chapter, we introduce three generic strategies for creating value in a global context—adaptation, aggregation, and arbitrage—and a number of variants for each. (This chapter draws substantially on Ghemawat (2007b)). This conceptualization was first introduced by Pankaj Ghemawat in his important book Redefining Global Strategy and, as such, is not new. In the next chapter, we extend this framework, however, by integrating these generic strategies with the proposition that global strategy formulation is about changing a company’s business model to create a global competitive advantage.