Global Products Strategies

Global Products Strategies

  • Submitted By: dekyah
  • Date Submitted: 12/02/2013 11:38 PM
  • Category: Business
  • Words: 695
  • Page: 3
  • Views: 110

GLOBAL PRODUCTS STRATEGIES

FIVE STRATEGIC OPTIONS
Strategic option 1:Product and communication extension-dual extension | * Uniform communication strategy * Standardized product policy * Product-driven approach * Go for global market that have a similar needs |
Strategic option 2:Product extension-communications adaptation | * Use same products with different promotional tools * Different uses of product based on the countries need |
Strategic option 3:Product adaptations-communications extension | * Firms adding or deletion some functions of the products for go global * Use the same communications at all market |
Strategic option 4: Product and communications adaptation-dual adaptation | * Products and communications being changed and modification made based on the needs and wants of the country |
Strategic option 5:Product invention | * Start from scratch; develop a new products and communications * Develop and launching products with a global mindset |

STANDARDIZATION VERSUS CUSTOMIZATION
Standardization:
* offer uniform product on a regional or worldwide basis
* minor alterations made to meet local regulations or market conditions
* goal is to minimize cost via mass-production
* products-driven orientation
Overstandardization: stifles initiative and experimentation at the local subsidiary level
Customization:
* focus on cross-border difference in need and wants
* market-driven mindset
* increase customer satisfaction by adapting your products to local needs
overstandardization: by adapt too much the local market conditions, the products may be similarly with the local products and there is no difference with the benefits of usage.

FORCES THAT FAVOR A GLOBALIZED PRODUCT STRATEGY INCLUDE:
1. Common customer needs
* Many product categories in the market have similar consumer needs in different countries
* The function might be identical, the usage conditions or the...

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