The Army and Air Force Exchange Services (AAFES), has capitalized on the opportunity to provide Armed Forces service members, their families and Veterans with necessary services and everyday products within the Continental United States, and also international locations across the world. AAFES is ultimately responsible for in excess of three thousand facilities internationally. Various fast food restaurants operate under AAFES to include Burger King, Popeyes, Taco Bell, and Subway just to name a few.
Armed forces members, their Family members and local nationals enjoy the convenience of being able to visit American establishments within foreign regions. This form of globalization is incredible due to its internal agenda to preserve the American dollar in foreign countries. Americans are more apt to spending their money within a trustworthy American establishment in lieu of spending their money on the local economy. Individuals that are allowed to shop within AAFES establishments are entitled to significant savings which vary from 5% to 20% discounts, in addition to zero taxes on their products and merchandise.
AAFES is committed to ensuring that a commendable portion of their financial returns are provided to supplement Armed Forces morale, welfare, and recreational activities. Additional AAFES funds are utilized to enhance the AAFES stores worldwide. AAFES attentiveness on the importance of benefits for the service members, and their quality of life has increased their international acceptance within the United States and abroad. AAFES motto is “We Go Where You Go. ” This type of marketing strategy is appealing to the service members, their Families, Veterans, and foreign nationalist who benefit from the globalization employment opportunities.
AAFES is in a position to exercise various levels of globalization measures proven to be beneficial for everyone involved within the United States and foreign countries. When the United States Armed Forces mobilize or deploy to different regions across the world, AAFES is the primary provider of their accustomed needs. AAFES offers services and merchandise through e-commerce and catalogs as well. Specific items may be limited or simply unavailable due to the remote AAFES locations within certain foreign countries.
The availability of merchandise through catalog orders and on-line services tremendously increase the globalization resources for AAFES distributors to better serve patrons. These options afford consumers the opportunity to take advantage of the exchanges services worldwide. AFFES has made several contributions to enhance the quality of life for the United States Armed Forces Members their Families, Veterans and local nationalist across the world. In appreciation for some of their services they have been acknowledged by several major international located organizations for their genuine support for the military.
In accordance with Army Air Force Exchange Services history AFFES was recognized for the following achievements: *AAFES was acknowledged by Burger King for their superior contributions to the Burger King Business. Within the presentation it was stated that AAFES was committed to providing quality service to Armed forces members and their Families throughout the world. *Best of the Pacific magazine credited AAFES Web site as being the best in retail/services. *Popeyes awarded AAFES with the International Franchise of the Year award. AAFES was named one of the Top 10 companies for Asian-Americans by Diversity Inc. Magazine. These praiseworthy accomplishments substantiate the business savvy of AAFES and its globalization efforts. They placed themselves in a position to earn additional revenue by entering foreign countries, providing services and merchandise that was in demand by the American service members, their Family members, and Veterans. They capitalized on the marketing opportunity within the foreign market which contributed to the enhancement of the economy in the local market.
Providing employment to the local nationals provided revenue to the local economy. AAFES can be considered a first mover when referring to their entry technique. They have developed a strong sense of understanding of the importance of a strategic commitment. AAFES is a wholly owned subsidiary in which they own and control 100% of their stock. This is the preferred method in order to maintain control and manage their business in countries across the world. The fact that AAFES are owned and operated by the Department of Defense provides leverage for the location of the establishment.
Licensing, franchising or forming global strategic alliances would not serve in AAFES best interest due to its objective of providing the Armed Forces service members the supplemental benefits of their earnings either through discounts or morale, welfare and recreational programs. AAFES has developed an organization that has the capabilities to serve the needs of service members, their Families and Veterans globally. This service is invaluable and will be utilized for as long as the Armed Forces exist.
References:
Retrieved on January 20, 2011 from http://www.aafes.com.
Retrieved on January 20, 2011 from http:// www.gxs.com
http://www.internetretailer.com/internet/marketing-conference/98662-aafes-takes-command-new-e-commerce-strategy.html
http://www.internetretailer.com/internet/marketing-conference/98662-aafes-takes-command-new-e-commerce-strategy.html
http://multichannelmerchant.com/crosschannel/international/marketing_aafes_sets_soldier
