Question details

GMS 522 Chapter 7 Global Product Strategies
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  • 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

Three factors

  1. Markets that are targeted
  2. Product and characteristics
  3. Company characteristics such as resources and policy

Key question: whether the effort is worth cost involved

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