Learn vocabulary, terms, and more with flashcards, games, and other study tools. Standardization versus adaptation of global marketing strategies in emerging market crossborder acquisitions rekha raonicholson bristol business school university of the west of england bristol, uk rekha. The global standardization products and services focus on huge profit, but they compromise on their products price. Rekha raonicholson, zaheer khan, 2016, standardization versus adaptation of global marketing strategies in emerging market crossborder. Pdf global standardization in international marketing. Amazons global strategy once again knocks the competition. Standardization and localization of human resource management. Global strategy for coca colas international expansion.
There are three different classifications of international expansion. Transnational strategy does consider the cost benefits of global standardisation, but strives to be responsive to differences among regions and attempts to derive. The advantages of selling a standardized product bizfluent. Jun 20, 2015 i believe global firms would be foolish to completely adopt a global standardization strategy. Amazons global strategy once again knocks the competition down. Its based on how to work with different countries and cultures to do promotion to a product. Globalization and standardization ieee standards university. Product standardization and adaptation in international. No business can afford to ignore 95 percent of its potential customers.
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. A major debate in the international marketing literature deals with the globalization of markets and the extent to which a companys international marketing strategy can be standardized buzzell, 1968. Ikea is all over the world and a smart thing about it is that the company do their show besed on every country traditions and cultures. Cocacola enters all the markets rich and poor rodrigues, 2009. Pdf standardizationadaptation of international marketing strategy. The ir framework has been used to critically analyse the global strategy of cocacola.
We will look at the pros and cons as well as examples of businesses that can, and cannot. This article analyzes the relationship between strategies of standardization and. In his book the lexus and the olive tree 1999, thomas friedman states understanding globalization is one of the most important issues that must be understood by policy makers and. The ideal business model is one which takes the disadvantages into account, uses the advantages and ultimately employs a combination of standardization and adaptation. Standardization and localization of human resource. Wiley international encyclopedia of marketing, edited by jagdish n. The german standardization strategy is in line with the regulatory framework and principles of standardization, as set out, for instance, in the wto criteria, regulation on european standardisation 10252012, the standards agreement between din and the federal republic of germany. Pdf examines empirically the standardization of international marketing strategy from the perspective of colombian exporting firms. The influence of adaptation and standardization of the. To expand globally, walmart is chasing a global standardization strategy. In other words, its the ability for a company or business to use the same marketing.
Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion. This essay examines various advantages and disadvantages of standardization in the organization. What is global standardization in marketing developing a global marketing strategy is a key concern for multinational companies. This paper extends existing international human resource management models by exploring.
The standardization strategy implies the adoption of a unique market policy or the regional homogenization of the international products development. Samuel craig introduction markets worldwide are becoming increasingly integrated across national borders at a macroeconomic,competitive,andproductmarketlevel. Jan, 2019 the two primary international business strategies are multidomestic and global. This article explores the moderating effect of several organizational factors on the relationship between standardization and firm performance.
In developing global strategy, it is useful to distinguish between three. If not, the right physical location, a fast internet connection and a wellbuilt website might still fail. Is walmart pursuing a global standardization strategy or localization strategy. Brand internationalization strategy beyond the standardization. The second difference relates to the degree of product standardization and responsiveness to local business environment. Standardization, adaptation, culture, product, global, international. Get an answer for what are the advantages and disadvantages of standardizing the product offerings for a branded hospitality chain. Standardization versus adaptation of global marketing strategies in. When expanding into international markets, companies must. Global vs transnational strategy ebooks, cases, quizzes. The international human resource management models developed in the last decade pursue a contextual analysis of the standardization global integration of multinational parent companies human resource management policies and practices and localization local differentiation of host countries practices.
Viswanathan delaware state university, dover, delaware, usa, and peter r. A threefactor model of standardizationadaptation of global marketing strategy was developed. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Advantages and disadvantages of global standardization. The fundamentals of standardizing global marketing strategy. Global companies are smart to market localized products under local brands in consideration of the local responsiveness. Product standardization and adaptation in international marketing. Should all industries adopt a global standardization strategy. Generally speaking, a global business strategy refers to taking your business beyond your home market, or international expansion. Gsj publishes material dealing with a number of prominent themes, including.
Hotel chains are motivated to maintain a high rate of global expansion as a key marketing strategy of creating brand loyalty king, 2005. Standardization versus adaptation of global marketing. The three factors include homogeneity of customer response to the. Global strategy is a shortened term that covers three areas. Pdf assignment sample cocacola global marketing strategy. In the road of the globalization, the walmart have been faced many troubles and the company seems to have learned from his problems which brings about the continuous development. I believe global firms would be foolish to completely adopt a global standardization strategy. Globalization and standardization reprint prologue in the spring of 2015, we decided to write an article on the relationship between globalization and standardization. It is very much feasible when the product or service has a similar.
Global standardization an overview sciencedirect topics. Toyotas global strategy moving toward global motorization toyotas global strategy moving toward global motorization april 16, 2003. Global standardization is type of marketing in which the uses the same marketing strategy which it uses in other countries. Assignment sample cocacola global marketing strategy global marketing strategy. It believes that it can transfer its business model into the foreign market.
Jan 27, 2017 other authors on the other hand have attributed the name to the lower left corner of the matrix. The general definition of global standardization is the ability to use standard marketing internationally. International business strategy explained with examples b2u. A global strategy, on the other hand, requires significant coordination between the activities of the centre and those of subsidiaries. This research paper examines the issues of standardization global strategy and adaptation customization in global marketing strategy and suggests methods that can guide multinational companies compete effectively and efficiently within the international markets. This strategy is also often referred to as an exporting strategy. Global standardization summary a coordinated strategy for flexible global architectures which use standardized components and modules proliferating vehicles from global architectures to maximize product functionality and differentiation, allowing us to meet unique customer needs and. Cocacola has been successful in the global market because it follows the local strategies and is able to deliver as per the needs of the. Types of international strategies mastering strategic. What are the advantages and disadvantages of standardizing.
Companys involved single firmcan be contained within a single firm, or partered collaboration divided among different firms geography single geographical location, or spread over wider areas examples. Product standardization is a very useful strategy, with many benefits. Additionally, the model may be used in future research to delineate the impact a variable may have on the ability of a firm to follow a standardized global marketing strategy. You can employ a global business strategy to reap the rewards of trading in a worldwide market.
Firms of all sizes, and in almost all industries, are increasingly conceptualizing their strategy on a. Transnational strategy does consider the cost benefits of global standardisation, but strives to be responsive to differences among regions and attempts to derive learning benefits from an international presence. Mar 31, 2019 your marketing can sing the praises of the products advantages and benefits just as you do in the u. European standardization and the eu 2020 strategy brussels, 5 october 2010 european standards provide stability in the market and this is what industry needs to sustain its competitiveness. When does international marketing standardization matter. Walmart moved into the process of globalization because of three significant reasons. Advantages and disadvantages of global standardization strategy advantages proficiency the greatest favorable position of a worldwide procedure is that it empowers an organization to use economies of scale. Some minor modifications to products and services may be made in various markets, but a global strategy stresses the need to gain economies of scale by offering essentially the same products or services in each market. International, multinational, and global strategies. A framework for understanding economic potential in the region. A onesize fits all is not appropriate in all locations. The general decision is whether to market with a standardized approach, in which marketing practices are uniform across the globe.
The first major advantage of standardization is quality control. However, with the global standardization of government and corporate networks on the tcpip communications protocol, and during the last 20 years, with the migration of standalone proprietary scada systems to interconnected grid networks, the security risks have increased geometrically. 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 standardization. Lowcost mass production convergence of consumer tastes convergence of consumer tastes lowcost strategy economies of scale high quality products at lower prices mass production conclusion based on the information found, we believe that global.
Amit yoran, in techno securitys guide to securing scada, 2008. Advantages and disadvantages of standardization, essay sample. Between us we have more than seven decades of experience in the world of globalization and standardization. Specifically, we investigate the role of competitive strategies, other aspects of marketing strategy, product characteristics. An international company therefore has little need for local adaption and global integration. The two primary international business strategies are multidomestic and global. From a theoretical standpoint, sullivans 1998 criticism is readily apparent in standardization the field of international marketing strategy research, specifically. Cocacola has been successful in the global market because it follows the local strategies and is able to deliver as per the needs of the local people hill, 2009.
In this lesson we will discuss global standardization. The main goal of a global strategy is management of the great differences that. Pdf standardization of international marketing strategy by firms. Assignment sample cocacola global marketing strategy. Standardization of international advertising strategies. In such a global environment, firms should develop their marketing strategy around three key dimensions zou and cavusgil, 2002. The transnational strategy is a hybrid strategy that incorporates elements of these two core strategies. Ikea used the global standardization strategy, a standardization strategy is an approach that can be used everywhere. Standardization makes forming a global standardization strategy clear. The majority of the value chain activities will be maintained at the headquarter. Amazon considers india as one of its fastestgrowing markets and so, it is doing everything get an upper hand against local player like flipkart.
Given the general understanding that standards control access. Pdf on feb 8, 2019, ayush bansal and others published global standardization in. Pdf the advantages of global standardization reduanul. An international strategy does not require strong coordination from the centre. The multidomestic strategy is sometimes called the multinational strategy.
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