Standardization is the process by which a company makes it methods, especially its production processes, uniform throughout its organization standardization helps cut costs by eliminating. Modern day businesses are not transferring toward adaptation with some mix of standardization this strategy increases the adaptation process by the consumers and increases the revenues in result, companies following adaptation also follow diversification and then compete local players in market. Standardization vs adaptation the first view is the standardization standpoint (as proposed by jain, 1989 levitt, 1983) according to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. Integration of standardisation and adaptation strategy model also have a few methodological limitations, such as focus on cosmetic industry and japanese based shiseido company (eg, cavusgil & zou, 1994) and simple methodology ( eg.
Successful international products meet local tastes, price levels, technical and safety standards, regulations and cultural preferences to reduce product development and adaptation costs, utilize a platform strategy, creating a core product with different versions customized for individual territories. 25 asian journal of business research volume 1 number 2 2011 standardization or adaptation in international advertising strategies: the roles of brand personality and country-of. Standardization of product is the approach for increasing commonality of product in the supply chain management 6) economics of scale unique aspects in product result in different in quality thus increasing cost of production and lower economies of scale.
Innovative marketing, volume 3, issue 4, 2007 demetris vrontis (cyprus), alkis thrassou (cyprus) adaptation vs standardisation in international marketing - the country-of-origin effect abstract the literature on international marketing presents a confrontation between two mainstream schools of thought regard- ing international marketing. 28 preferable degree of standardisation and adaptation specified by the experts, to evaluate the influence of marketing strategy elements over the export business results of the companies. Standardisation versus adaptation in a globalisation context 2468 words | 10 pages standardisation versus adaptation in a globalisation context challenge this is the challenge facing primarily multinational firms whether to standardise their local offering or adapt/localise it for the market they are selling into.
Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a foreign market the advantages of standardization is the consistency of the product throughout the world and the cost savings from having identical the product. Standardization of marketing strategy 109 characteristics (goals, resources, commitment, and international experience) and external environmental forces (market demand, nature of product/industry. The factors that influence the degree of standardization and adaptation are the following: language differences (translation of the message, trade names, brands, etc) cultural differences (what do people prefer or dislike, religion, attitudes, etc. Journal of international business and cultural studies are us companies employing, page 1 are us companies employing standardization or adaptation.
Despite 40 years of debate on international marketing strategy standardization vs adaptation, extant empirical research is too fragmented to yield clear insights. In other words, global businesses pursuing standardisation strategy are able to respond to changes in individual markets to a lesser extent compared to local businesses or businesses using adaptation strategy. Product standardization and adaptation in international marketing: a case of mcdonalds i abstract companies marketing their products and/or services overseas are faced with the.
Global pricing: standardisation v adaptation in management on april 18, 2013 at 4:38 pm hbr has previously explored the impact of competition, product and demand on the pricing strategies of businesses. Key words: culture, international marketing, marketing strategies, standardization and adaptation purpose: compare two strategies, standardization and adaptation, to show how companies manage cultural differences. Strategy adaptation/standardization, as well as its antecedents and outcomes and (d) inconsistent, yielding different, and sometimes contradicting, results as to which stra- tegic approach is more appropriate. The aim of this paper was to determine that which international marketing strategy (standardization product adaptation or modification strategy will v/s adaptation) is appropriate for the firms which leads to increase in the sales volume of the firm in operate internationally.
Despite increasing importance of international marketing for firms to survive and continue to prosper as well as increase their profitability in a rapidly changing environment, researchers pay more attention to domestic knowledge issues rather than international marketing. Standardisation versus adaptation in a globalisation context challenge this is the challenge facing primarily multinational firms whether to standardise their local offering or adapt/localise it for the market they are selling into. Product adaptation is often essential for successful international sales in this lesson, you'll learn what product adaptation is, some of its key concepts, and be provided some examples.