Standardisation versus adaptation in a globalisation

Rationale behind standardisation practices relate to homogenisation of consumer wants and needs due to intensifying forces of globalisation Winer, Elements of both approaches should be incorporated in order for multinational companies to succeed.

Moreover, differences in languages between countries may have negative implications on standardisation, at the same time supporting the implementation of adaptation strategy.

Adaptation advantages and disadvantages

Individuals purchase products due to some references from their own culture. Red Bull GmbH, Austrian energy drinks manufacturer uses adaptation strategy in relation to all elements of marketing mix to a great extent. The strategy of adaptation allows global businesses to respond to changes in local marketplace in rapid manner. However, researchers have identified important source of constraints that are difficult to measure such as cultural differences rooted in history, education, religion, values and attitudes, manners and customs, aesthetics as well as differences in taste, needs and wants, economics and legal systems. In addition, standardization is a reasonable strategy at a time where trade barriers are coming down. These changes may be political, economical, social or technological; nevertheless, relevant business processes may be subjected to modifications in order to eliminate or at least to minimise negative impacts of these changes. Evenly, they need to recognize their distinctive external environmental constraints and benefits of standardization. Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment.

When entering new market, decisions need to be taken by strategic level management about the extent of standardisation in relation to each individual component of the marketing mix. We often research concepts in order to give them a true and in depth meaning Standardisation vs Adaptation in International Marketing Posted on by Raj Krishnamurthy Introduction Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets.

standardization vs adaptation

Sometimes companies do it out of simple need to survive, but more often they just want to grow larger. Communication 7 3. Instead, they should embark on market research and determine their customers, their needs and wants. Using the effect of strategical and tactical models, the case illustrates the effect of McDonald's on the global environment and how they adapt to local communities.

The method section describes the sample and the study variables, followed by the section on statistical analyses and results. Pros and Cons of Both Approaches Nevertheless, although the standardization approach is more common, its adoption is not unconditional, as proposed by Douglas and Wind Levitt argues that companies that are managed well have moved away from customizing items to offering globally standardized products that are advanced, functional, reliable and low priced.

In spite of their century-old traditions, they both are relevant and evolving. For example, Red Bull can in North American market is designed in red, silver and blue colours.

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Adaptation vs. Standardization