Standardization versus adaptation The fundamental international product decision after the decision to internationalize International market approach alternatives to adaptation Sell the product as it is internationally Modify product for different countries or regions Design new products for foreign markets Incorporate all differences into one product and introduce it globally Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 10-6 Standardization versus Adaptation The fundamental international product decision after the decision to internationalize. International market approach alternatives to adaptation • Sell the product as it is internationally. • Modify product for different countries or regions. • Design new products for foreign markets. • Incorporate all differences into one product and introduce it globally
Factors Encouraging Standardization) SN. o Economies of scale in production Economies in product R&D Economies in marketing Shrinking of the world marketplace and increasing economic integration Global competition Global market(taste) Global advertisement (MTV Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 10-7 Factors Encouraging Standardization Economies of scale in production Economies in product R&D Economies in marketing “Shrinking” of the world marketplace and increasing economic integration Global competition Global market (taste) Global advertisement (MTV)
K actors Encouraging adaptation o Differing use conditions Government and regulatory influences Differing consumer behavior patterns Local competition True to the marketing concept Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 10-8 Factors Encouraging Adaptation Differing use conditions Government and regulatory influences Differing consumer behavior patterns Local competition True to the marketing concept
Strategic adaptation to Foreign Markets High Need for Adaptation Degree of Cultural Grounding Lo Industrial/ Technology Intensive Consumer Nature of Product Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 10-9 Strategic Adaptation to Foreign Markets Low High Industrial/ Technology Intensive Consumer Need for Adaptation Degree of Cultural Grounding Nature of Product