- Cost savings in production and marketing (economies of scale)
- Global customer segments may exist and can be targeted with a standardized product.
- Some argue that standardized products are likely to be better tested and therefore provide customers with higher quality
- Global competition
Generally some product changes are needed as standardization results in products that are off-target, i.e. do not appeal completely to any consumer market.
Standardization also results in products which are not unique – firm foregoes the segment of the market that wants exclusivity.
The firm leaves itselfvulnerable to local firms that can more precisely cater to local tastes.
Factors Affecting Adaptation
- Markets that are targeted
- Product and characteristics
- Company characteristics such as resources and policy
Key question: whether the effort is worth cost involved