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Strengths of a Standardization Strategy

In: Business and Management

Submitted By onemadfox
Words 1503
Pages 7
An adaptation marketing strategy suffers from several downfalls that are in fact, strengths of a standardization strategy. Likewise, standardizing a firm’s marketing strategy can limit the company in a variety of ways that prove to be benefits of an adaptation marketing strategy. This essay will explore the advantages and disadvantages of the two international marketing strategies, with integrated examples of each strategy provided. To conclude this argument, the concept of combining both standardization and adaptation strategies when operating internationally will be discussed.
Standardization
Advantages
The standardization strategy denotes that corporations offer a uniform marketing program and/or process, (being the product, promotion, place and price) on a national, regional, or worldwide basis (Chung, 2003). Essentially, the firm uses the same advertising, product design, product packaging and the same price that is used in the home market. Companies that follow a standardization strategy are the likes of Apple and Coca-Cola, where an iPod is the same anywhere in the world, as is a can or bottle of Coke. As noted by Levitt (1983) corporations using a standardized marketing strategy benefit from enormous economies of scale in production, distribution, marketing, and management. As a result of this, such firms can destroy competitors that have not yet “geared up” to this new commercial reality, thus allowing the firm to achieve long-term success with minimal threat of competition. A standardization strategy cuts costs for the organisation due to being able to buy raw materials in bulk and not having to make new advertisements, packages or product lines which require more investment from the company. Another advantage for firms that adopt the standardization strategy when operating internationally is having uniformed global brand images for the company. This…...

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