UNIT 1 STANDARDIZED AND LOCALIZED STRATEGY - Running header Unit 1 Standardized and localized strategy STANDARDIZED AND LOCALIZED STRATEGY CLEMENT TAY

UNIT 1 STANDARDIZED AND LOCALIZED STRATEGY - Running header...

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Running header: Unit 1 Standardized and localized strategy STANDARDIZED AND LOCALIZED STRATEGY CLEMENT TAY GCC MARKETING MANAGEMENT DATE OF SUBMISSION PROFFESSOR FRANCIS PIRON 1
Unit 1 Standardized and localized strategy ABSTACT This paper looks at the standardized and localized strategy used by various corporations in the business world. The advantages and disadvantages of both strategies are discussed in depth through the paper as well as ethnocentric, polycentric, and geocentric orientations and the competitive advantage concept. Key terms; standardized strategy, localized strategy, ethnocentric, polycentric, and geocentric orientations. 2
Unit 1 Standardized and localized strategy DQ 1. Explain the differences between a standardized and localized strategy. Which are the advantages and the disadvantages of each one? Levitt is the one that introduced the globalization of markets, and he suggested that Companies have to carry their business like they are in a large market, and should ignore the boundaries which are regional or national (Levitt, 1983). The difference between standardization and localized strategy According to Viswanathan, Nanda; Dickson, Peter, standardization refers to the common market program. However the term standardization refers to the marketing program that is common and runs across all the nations, this means that it is characterized by the aspect of being global, where the Companies sell their products everywhere and the same way worldwide (Levitt, 1983). On the other hand localized strategy refers to the customization of products to fit the markets of a particular geographical area. In this strategy the products being sold target specific characteristics of the selected market (Quelch, 1986). One advantage of standardization is a uniform global image. This is illustrated by Coca-Cola which has same logo and bottle on their product worldwide they use same advertisement method worldwide. The second advantage, standardization leads to economies of scale due to massive

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