Standardization vs. Localization: Choosing Business Strategy
Overview and Insights
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business strategy: A strategy means a plan of action that is aimed at achieving certain goals in the short and in the long run. In such, business strategy could be defined as the set of plans that business managers, owners, leaders, and operators develop in order to attain business goals. What is the ultimate business (any business) goal? Profits! More and more profits.
So, how do international businesses generate those profits in a world that has diverse markets, factors of production, preferences, tastes, barriers, regulations, economic development, belief systems, and political structure? How to go there and what to bring with you? Or what to send there and what to get from there? How do you do what you need to do there and lower your production costs? The answer to those questions depends on the structure and the content of the business strategy.
A couple of key strategies to consider:
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The global standardization strategy: it focuses on using the same design, shape, look, components, and ingredients of the product for all its markets. This leads to lower operating costs and, thus, leads to higher profitability.
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The localization strategy: rather than following the “one size fits all” approach, this strategy aims to achieve profitability by focusing on customizing the product and/or services that better fit the target market. It takes into consideration various market traits, such as taste, preference, income, demographic distribution, customer behavior, and cultural preferences or barriers, when designing and/or introducing a product.
Localization is the New Globalization
Before diving into your research and analysis, review the following video to give you a different perspective about the evolution of globalization.
Review the
Localization is the New Globalization Links to an external site.
TED Talk by Archawat.
Assignment Description
Pick two businesses or organizations that operate internationally (multinational corporations, businesses, organizations, or entrepreneurs) where one uses a standardization strategy, and the other uses a localization strategy. Then briefly evaluate the difference in both approaches and provide a recommendation for profit growth.
Narration: You are highly encouraged to narrate your PowerPoint slides and add your voice and energy to your presentation.
Slide Number Requirements
Three to six slides, not counting the separate Title slide and the separate References slide.
Content Structure and Requirements
· Title Page (slide)
· Title of the presentation
· Name of the author (your name)
· E-mail address of the author
· Class name
· Professor’s name
· Date
· Content Structure
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Introduction slide: State the name of the organizations, what they primarily produce, and what global strategy they use.
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Data: Standardization
or Localization
: Use facts and pictures (preferred) to show the strategy that each organization uses. You could use a picture of a product/s or advertisement or logo or anything that shows their strategy in a foreign market. Use data to show the revenue, profit, or market share growth for the organization in that market.
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Findings and Analysis: Evaluate the success of each organization’s strategy based on their revenue, profit, or market share growth.
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Conclusion and Looking Ahead: Managerial Critical Thinking: In your opinion, is each organization following the appropriate business strategy in the market they operate in? Are their current strategies and approaches profitable? What do you recommend they do differently to increase their profits?
Reference List
· Use at least two reliable sources to obtain facts, data, news, updates, graphs, and so forth.
· Cite all sources used. The references need to be in APA format.
