Global Standardization: Courting Danger

This article focuses on global standardization of products. The author says that there are circumstances where a multinational can gain through increased standardization of its product and marketing mix, and circumstances where this strategy would hurt the company. There are some products and communication programs that can be taken abroad without major modifications; many consumer electronics fit that mold, although their price and distribution strategies still vary from country to country. On the other hand, many of the most notable international product failures have come from a lack of product adaptation. A modified product, would lead to higher sales in each major market, and the additional revenue would more than cover product and advertising modification costs. There are three broad forces that push manufacturers toward more international customization. The first is the extent to which customers in different countries want or require special product features. The second is the extent to which customers in different countries vary in their resources and buying behavior. The third is the extent to which environmental factors vary, such as government regulation, climate, competition etc.