When an organization wants to go global, they look at the opportunities in all countries that will permit that organization to enhance the effectiveness of business functions everywhere the organization has operations and then devise a strategy to achieve that goal. The two main reason an organization looks to globalization is for standardization and customization. Standardization uses a regular product, service and message over all markets to solidify the image of the brand. Standardization works until consumers turn to local companies that identify with the region’s cultural needs and wants. The other reason is customization which is standardized products, services, and messages that have…
Time consuming, costly, must constantly be redesigned to surpass the competition, consistent competition requires the product to be repositioned periodically, lost revenue due to required changes in price to remain competitive…
Customer trends change and so does their choices. People are generally tired of the same product that they had been…
The two generic business strategies are differentiation and cost-leadership strategies, and they are fundamentally different from one another, both with their own drawbacks and risks (Rothaermel, 2013). These strategies are referred to as “generic” because they may be used by any type of organization (Rothaermel, 2013). The drawbacks and risks of a differentiation generic strategy is its viability “is severely undermined when the focus of competition shifts to price rather than value-creating features” (Rothaermel, 2013, p. 155). This tends to occur when there is a level of acceptable quality which has emerged as a standard (Rothaermel, 2013). Organizations pursuing this strategy also need to ensure that they are not adding features which add cost but no “perceived value in the minds of consumers” (Rothaermel, 2013, p. 155).…
the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.…
Most people tend to buy things that are the latest trend. Brands are a great decision maker when it comes to trend buying. The more popular the brand, the more people want to buy that brand. People go for what is familiar as well. If they are familiar with a particular brand then they purchase items of trend, usually because they have bought that particular brand before and feel more comfortable buying that type of product of a certain brand. In this day and age, the more it cost the better it is. This of course is not the case. It is naturally the best thing to compare similar products before purchasing. Introducing a product that is of the latest trend can be difficult, marketing managers need to be innovative, captivating, and original!…
A tool to determine the amount of standardization to offer to the market given that the market wants high product variety…
Bernhardt, D, Liu,Q, Serfes, K, 2007, ‘Product customization’, European Economic Review, vol 8, no 11, pp 1396-1422…
Global standardization strategy - Companies that are pursuing a global standardization strategy focus on increasing profitability by lowering the costs that come from economies of scale and location economies. They want to market a standardized product worldwide, so they can gain maximum benefits from economies of scale. If there is strong pressure for cost reduction, and demand for local responsiveness is minimal, then a global standardized strategy is the best strategy to pick. These conditions prevail in many industrial goods industries, whose products often serve universal needs.…
Companies are motivated to participate in standardization because they gain an edge over non-participating companies in terms of insider knowledge. Early access to information is valuable.…
Q: List elements of the national business environment that influence the standardization-versus-adaptation decision. Standardized is just one of a number of strategies with which firms successfully enter the international marketplace today. Standardization may not always be the most appropriate strategy, even. Smaller companies may also be better off adapting to local cultures and exploiting their international image to gain market share locally. Consumers in different national markets often demand products that reflect their unique tastes and preferences. Cultural, political, legal, and economic environments have a great deal to do with the preferences of both consumers and industrial buyers worldwide. A culture’s aesthetics involves, among other things preferences for certain colors.…
Why is mass production and interchangeability important? Standardization and machine production while one machine was making one part other machines could be making others parts, and by using an assembly line great qualities of the finished product could be turned out by merely assembling the proper parts. Thus standardization led to mass production, the use of standardized parts to construct great quantities of a product on a assembly line, it doesn't pay to hake large amount of a product if they cannot be sold. When the market is large enough, the use of standard interchangeable parts makes mass production possible and substantially reduces costs. Mass production is possible and machine can be employed to produce thousands or hundreds of thousands of units, the portion of the visit that must be charged to each unit be ones small or even negligible.…
To a student, the end of the school year can be one of the most stressful parts of the school year. When they hear this, a lot of confused parents like to ask “why?” The answer is pretty simple. At the end of the school year, students have to take giant exams called standardized tests. These tests are hyped up for the duration of the school year which makes some students nervous on test day. This will affect the student’s performance, therefore decreasing the accuracy of the test by it’s own hand. This is just one of many reasons why students should not have to take standardized tests. To name a few, standardized tests are inaccurate, very stressful to the student, and overall are not worth the money it takes to produce them.…
The main purpose of standardization is to establish mandatory or obligatory norms for the design and production of machines so as to reduce variations in their types and grades and to achieve quality characteristics in raw materials, semi-finished and finished products.…
Structure includes such things as the number of departments in an organization, the span of control, and the extent to which the organization is formalized or centralized.…