Strategies in Action Assignment Example | Topics and Well Written Essays - 2500 words

Strategies in Action - Assignment Example Lastly, by weighing the relative advantages and disadvantages, a suggested change of thinking is offered for the recommendation. Over the years, global and multinational companies are faced with the choice between standardization and adaptation when it comes to their strategy in different markets. While standardization has been the cornerstone of globalization over the years, it has also been argued that companies that tailor their strategy to their individual country markets have more chances of local success. According to Loyka, â€Å"the globalization of markets is the principal driving force behind the need for global product standardization theory (2003).† The two strategies certainly have their own advantages and their own drawbacks. Therefore, assessing these relative strengths and weaknesses is important when considering entering other international markets and joining the global competition. Johansson in his book â€Å"Global Marketing has identified the advantages of standardization, which according to him includes the following: â€Å"cost reduction, improved quality, enhanced customer preference, and existence of global customers, and the emergence of global customer segments (2000, 367-368).† As according to Loyka: â€Å"While standardization of product design, packaging and promotional material offers important economies to multinational marketers (Buzzell, 1968), little hard evidence is available on the potential benefits arising from a more coherent international image, more rapid international diffusion of products and ideas, and greater coordination and control (Walters, 1986). The gains from standardization range from cost savings and more consistent dealings with customers, to better planning and exploitation of ideas with universal appeal (Buzzell, 1968) (Loyka 2003).† Cost reduction. As companies find their local markets saturated, companies look for opportunities in the international markets. The