Question

1. Globalization = Standardization + Localization: What does this equation really mean about optimizing a firm’s offerings for maximum market penetration? Be sure to properly use the terms in the question.

Answer 1

Globalization=Standardization+Localization

The above refers to the efficiencies and core competencies that a firm must recognize and incorporate in its service delivery to ensure it realizes its efforts towards globalization.

Explanation:
Components of the globalization are thus built around the realization of operating advantages through the standardization and localization. Standardization means the firm needs to produce standard goods that can effectively compete in the international markets to ensure its competitive advantage and position is effective for success in the global markets. The standardization will be measured in terms of the quality of products and services that the firm produce and how they are effectively used by the consumers to satisfy their needs mainly by employing state of the art technology. This will improve the brand positioning of the firm in the global market.

Localization on the other hand refers to the efficiencies on how the firm will try and familiarize itself with the foreign markets through the utilization of the resources available in that market. The localization will imply the company employs locals in its operations and uses the cheaply available local resources for the cost efficiencies and savings. The localization reduces the risk of importing inputs or labor that may be expensive to the company that intends to globalize.

The companies that put their greater efforts towards standardization and localization will easily survive the forces in the global markets. Some of the successful firms that have globalized include Amazon, Apple among others.