Global standardization is better for it is controlled by one company, not as expensive as local customization, and it can be sent anywhere originally than manufactured. Global standardization is the ability to use standard marketing internationally. The fundamentals of standardizing global marketing strategy. A good example of a company that has made an attempt to integrate both corporate and local culture is mcdonalds. Viswanathan delaware state university, dover, delaware, usa, and peter r. This report discusses the contemporary issue facing by the global companies in marketing their products. According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and. They have a good advertisement policy and they did it well for each country still they did not change the product. For example, the correct answer to the tradeoff between standardization and local flexibility may vary across markets even for the same business. Introduction global versus regular marketing scope of activities are outside the homecountry market productmarket growth matrix 12 3. Beginning erp implementation for global organizations guide. Global application or local application information.
For example, the safety of a certain brand of lighters can be a debatable issue, as what is unsafe for a consumer may be. They insist on some aspects of standardization and values. Standardization versus customization in international. There are general standards that goods are required to meet. It involves the spreading of production, marketing, and research and development activities of companies to all the location it. The standardization can be defined as formulation, publication, implementation of guidelines, and rules for common and repeated use. If you want to be succesful in different countries either you stardardize your product or adapt it for that market. Yet an experienced change management team will help mitigate the strain on it, customize your deployment strategy, and provide a training program to make user adoption. Cisco it has had lots of internal arguments about the value of local vs. An investigation using bridging conjoint analysis january 1995 journal of the academy of marketing science 233. Kiara embry global standardization vs local customization marketing strategies cons of global standardization doesnt work in every country may run the risk of losing to local competitors who can tailor their goods and marketing efforts to the local population. It can also eliminate unnecessary expenses and complications resulting from not adhering to best practices. Discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment. It promotes the free movement of goods and services between communities or countries.
Software asaservice saas vendors have used this belief as a selling point for their solutions, promising they require far less tweaking than onpremise software. Especially with applications involving static and dynamic weighing, specific tasks require solutions that are both innovative and cost efficient. Where industrywide standardization is concerned, consumers are able to choose from a range of goods and services which are all distinct, yet offer the same general benefits and are of the. But when a global approach can fall anywhere on a spectrumfrom tight worldwide coordination on programming details to loose agreements on a product ideasthere is no reason for this extreme view. The way that an international business addresses these debates can make the difference between superior and inferior performance. Standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. What are the advantages and disadvantages of standardizing. Globalization and the enhancement of technology lead to international trade, easy access to communicate and travel. It uniform the methods, technical, skills, processes and criteria to let the process of a work become easier and faster. Apr 23, 2015 global standardization meaning, definition, what is global. For example, the levels of standardization and customization can be different for the home and international markets almodovar, 2012.
Jan, 2019 companies using the global strategy do the exact opposite. Standardization and customization a global debate dr. Standardization and customization open textbooks for. Companies can run the risk of overstandardizing their content and offerings for global markets, which largely ignores local customers needs. Photo courtesy of skype, a division of microsoft, inc. Traditionally, many companies have chosen to turn a blind eye to the benefits of standardization for fear of the hassle, time, and expenses that may accompany switching software.
Potential benefits of globalization include the collapse of international barriers, stirred economic growth, and global prosperity. Local responsiveness and global standardization cocacola consumer product and john deere industrial background as the world becomes more connected through the internet, many companies expand their businesses into foreign market space. Take the case of a treasurer who leaves his company after 10 years of good and loyal service. Standardization and localization are two of the most important processes of global business.
Standardization versus customization in international marketing. As more organisations expand their business into the international market, it is important for them to adopt international marketing strategies to protect them against foreign competitors. A global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies the goal is to pursue a lowcost strategy on a global scale. With that, the multinational commercial world nears its end, and so does the multinational corporation. Discuss the advantages disadvantages of standardized international marketing advantages standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. Achieving maximum productivity through standardization of service product and service design and delivery achieving global economy of scale and lowest unit cost which is an import. Global organizations typically want to standardize business processes across international operations, but they also need the flexibility. Global standardization meaning, definition, what is global. Dickson florida international university, miami, florida, usa abstract purpose to examine issues of standardization and adaptation in global marketing strategy and to explain the dynamics of.
Pdf standardization versus customization in international. On the other hand, globalization leads to over standardization of products. Standardization of it infrastructure is one of the most strategic, yet simplest to. While this method rarely offers economies of scale for the global firm, it facilitates local service and expedited local business development advantages of standardization standardization as an international marketing strategy bears a number of advantages which make it an attractive choice for many globalizing companies douglas and wind. May 05, 2016 too often, executives view global marketing as an eitheror propositioneither full standardization or local control. International profit opportunities using the multidomestic strategy are based on achieving economies of scope, whereas the global strategy is about. Apr 12, 2016 standardized care and personalization are not mutually exclusive. Oct 21, 2012 customization communication platform i. The theory of global marketing orientation suggests that. The general decision is whether to market with a standardized approach, in which marketing practices are uniform across the globe, or a differentiated approach, in which messages are. Difference between product adaptations and standardization. They sell the same products or services in all markets where. Marketing strategies in a country bycountry basis are tailored with the peculiarities of the local market. The third strategy, product invention creating an entirely new product for a given local market.
Erp software packages sometimes require modifications to meet a company s business practices. Standardization refers to companies using the same or similar marketing materials regardless of cultural or linguistic diversities amongst the audience being targeted. Export management product adaptations also called differentiation or localization or customization come in several forms. In this strategy, companies go back to the drawing board and rethink how best to design a product for a specific country or region. Standardization and customization open textbooks for hong kong. Jan 15, 20 the second debate revolves around the dilemma of global visavis local strategy, that is, the tradeoff between global standardization and local customization. Firms do not have to choose either standardization or customization in its totality, they can have a mix of both and find a balance based on competencies, market conditions and marketing goals. While the global product itself is standardized or sold with only minor modifications, the branding, positioning, and promotion may have to reflect local conditions. Standardization is the process of developing technical standards, which apply in the same manner to all manufacturers and consumers. Localization is often advocated for its idea of selfsufficiency. Jan 22, 2009 one of the succesful example of standardization strategy is cocacola. Companies expanding into international markets using the multidomestic strategy completely immerse their local market business units into the countries where they operate to the extent they appear no different from host country competitors. Standardizationcustomization debate in global marketing. Standardising and customising are two approaches that are often considered.
The guiding principal should be on delivering value to customers better than the competition to achieve a sustainable competitive advantage. Global companies are smart to market localized products under local brands in consideration of the local responsiveness. As hotel chains increasingly rely on global revenue, this. It emphasizes product customization to specifically meet customer needs. Jun 20, 2015 i believe global firms would be foolish to completely adopt a global standardization strategy. Customization customization on the other hand refers to the tailoring of the campaign according to the needs of an individual or groups of individuals. In fact, terms like global standardization created some unnecessary confusion. Lets talk about how the sales and marketing functions deal with this paradox first before talking about hr. Global standardization vs local customization by kiara. While consumers all around the united states may take for granted many popular brands such as cocacola and. What is global standardization in marketing developing a global marketing strategy is a key concern for multinational companies.
Unlike globalization, it promotes local production and consumption as much as possible. To be able to compete successfully against intense global competition, companies are permanently seeking new means of raising the efficiency of their processes. Tms rigidity can offer guarantees of sustainability for large groups. Product standardization and adaptation in international. Globalization is all about spreading, without any boundaries. Economic localization can be seen as a counterpart of globalization. Companies using the global strategy do the exact opposite. Critics of levitts perspective suggest that his argument for global standardization is incorrect and that each market strategy should be customized for each country. Ding and keh 2016 investigate the pros and cons of service standardization vs. Product standardization lowers the available variety of products that serve a similar purpose. This paper argues that meanings given to standardization and globalization might have created some confusion and precipitated potentially misleading research results in the literature. A case of mcdonalds ii acknowledgements writing this thesis during the past ten weeks of spring 2012 has been a process of continuous learning and hard work. In fact, standardization can enhance personalization by eliminating unnecessary work for physicians and giving them more time to spend with patients.
Oct 28, 2019 but a global payroll with local partners in each country requires handson support from a customer success team. According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. Product adaptations also called differentiation or localization or customization come in several forms. They sell the same products or services in all markets where they operate with minor modifications, if any, to their products or services. Erp software packages sometimes require modifications to meet a. Structuring your organization to meet global aspirations. In the hospitality industry, a good example is hyatt regency vs. How much flexibility and independence can and should be left to the discretion of the clients respective management and security organizations. You can also overlocalize, which can either come off as too try hard by local customers, or cant be sustained by. A onesize fits all is not appropriate in all locations. If your company is working in different countries, you have to catch up the customer needs and learn about market characteristics of each country. Product adaptation in international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. Local responsiveness and global standardization 1042 words 5 pages. Oct 05, 2018 an erp implementation can be daunting for any organization, but it is especially challenging on a global scale.
It also provides access of cheap raw material and therefore leads to a competition. Which of the following statements is true about global standardization strategy. The main disadvantage to standardization is that it reduces the flexibility of a chain to cater for regional tastes and expectations. If he only based his work on excel, taking over the position will be very difficult for his replacement. Jun 24, 2016 customisation vs standardisation posted on june 24, 2016 june 24, 2016 by jessica as more organisations expand their business into the international market, it is important for them to adopt international marketing strategies to protect them against foreign competitors. The above matrix shows that the balance between global and local will depend on the strategic context of the specific company, its competitors, history and resources.
They have found that the advantages of service customization include greater. International brand management is dealing with different type of problems. Global versus local marketing strategy have been a major debate in crossnational business development over decades for global brands levitt, 1983. A global erp software implementation provides an opportunity to standardize processes across locations, such as in a global shared services erp model, but such changes can be difficult.
Standardisation is an approach that can adapt to work across different cultures and countries in order to promote products. Of global visavis local strategy, that is, the tradeoff between global standardization. Once this balance has been identified, then companies will need to examine the consequences for their particular products and services. While its possible that an automated payroll platform may never require additional support from csm, it is essential that the company has real people to turn to. Whereas for adaptation, a company would change their methods such as the price, promotion, packaging andor the. Small local producers are not able to compete with this kind of standardization of products. A global erp implementation needs to find the right balance between standardized vs. Furthermore in question two is discussing about if i were a manager in a company that operates in many countries, the criteria would i use to determine whether a new system should be developed as a global application. Mar 25, 2015 issues are easier to fix, downtime is reduced, and a global remote support team enables local network engineers to get a full nights sleep.
Should all industries adopt a global standardization strategy. Create marketing content that resonates with prezi video. Standardization is a marketing strategy aimed to create uniformity in order for offerings to be viewed the same across all platforms. A global business plan determines how a business will develop and manage its operations around the world. Standardization and customization linkedin slideshare. Product standardization and adaptation in international marketing. The paper discusses the basic assumptions underlying the marketing function as a necessary point of departure to build a sounder theory around these concepts. Resnicks 1989 implied definition of globalization rendered it as a process. The fundamentals of standardizing global marketing strategy nanda k. By this, product adaptations are considered as necessary. The csm serves as a liaison between the client and the local partner. Customers can upload their own cover images or choose from the gallery. Service customization aims to fulfill heterogeneous customers needs, whereas standardization focuses on serving a larger number of customer requirements baalbaki.
This competition results in good quality products and services. Adaptation the first view is the standardization standpoint as proposed by jain, 1989. Even though there is no connection between the two processes, as one happens independently of the other, they both became a crucial part of business when trade reached a global scale. The second debate revolves around the dilemma of global visavis local strategy, that is, the tradeoff between global standardization and local customization. When, where and which security policies, practices and capabilities should be standardized across major division, business models and geographical locations, and. Localization is often advocated for its advantages like it puts production under democratic control. Is there a way you can you offer the appearance of.
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