Question

In what kind of industries does a localization strategy make sense? When does a global standardization strategy make most sense? (400 words – Maximum)

Answer 1

A localization strategy is a strategy in which a company adjusts its service or products based on the area that a particular branch exists in. This strategy works best where there are differences in what customers from different areas want. If a company can identify particular properties of a service or product that would make it suited well for an area, then it is worth considering creating a branch to deliver a tailor-made product. Products like this may succeed even if there are cheaper alternatives. One of the things that change throughout culture is food. International companies in the food industry have to adjust to the local tastes. Whether due to religion, tastes, or ingredient sourcing, menus will be different.

The localization strategy does miss out in one area, and that is economy of scale. With each branch serving their local area, they cannot take advantage of mass production.