Question

Hi Can you please answer this following question with Harvard referencing and no plagiarism and also reference list. Thanks you very much for answering in the best way.

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

Answer 1

A strategy for localization is a method in which a firm changes its service or goods depending on the region in which a specific branch resides. This approach works well in various environments where there are variations in what customers want. If a business can recognize particular properties of a service or product that would make it appropriate for an region, then the development of a branch to offer a tailor-made product is worth considering. Products like this can succeed, even if the alternatives are cheaper. Food is one of those things that change throughout culture. International food industry companies need to adapt to the local tastes. Whether it's because of religion, tastes or sourcing ingredients, menus will be different. In one area, the strategy of localization is missing, and that is economies of scale. Unable to take advantage of mass production with each branch serving their local region. Centralizing their manufacturing into lower-cost areas like India or China, they skip lower labor costs and spread operating costs through more units, reducing consumer prices. This is the strength of a strategy for global standardisation. Companies also use these forms to adapt to fit local market. Most companies are implementing successful localization strategy such as KFC, Coca Cola, MTV, Motorola, P&G, etc.

The global standardization policy makes full use of the impact of cost-reduction. This strategy has one advantage in terms of efficiency. Companies may sell their goods at a lower cost than those that don't make use of these benefits. The consequence of using a strategy like this is lack of flexibility in their products. Using that strategy, there is little concern for local differences. Lots of gadgets around the world are the same. Differences in programming can occur for language differences or for charging methods, but the systems can be used anywhere. A global strategy is effective when there are small differences between countries, and global competition. In some aspects, the strategy for global standardization makes sense. Second, to minimize costs in product analysis , product creation, product promotion and manufacturing, companies should adopt economical scale. Secondly, the strategy lets businesses have full leverage over global product marketing; introduce a global standardization plan that not only eliminates marketing challenges but also concentrates marketing capital. Third, a global standardization strategy to create a unified global product image, strengthen the reputation of companies and help identify products.