0
This is known as Global Standardization, which means developing standardized products marketed worldwide with a standardized marketing mix. An example of this is the Big-Mac of McDonald's. They used the same brand name and same slogan for the same product all over the world. This assumes that their is a large, similar target market that can be targeted globally. McDonald's and Coca-Cola are two examples of companies using this strategy.
The main advantage of this strategy is cost saving. Using standardized products across all your business units helps generate economies of scale. These savings can then be applied to your business' margin, lower price to consumer, or reinvested into the company for research and development. In the examples of Coke and McDonald's they use their cost savings to offer low prices to consumers, they then make their money with smaller margins spread across high numbers of consumers.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Meaning of global strategy?
Global strategy as defined in business terms is an organization's strategic guide to globalization. A sound global strategy should address these questions: what must be (versus what is) the extent of market presence in the world's major markets? How to build the necessary global presence? What must be (versus what is) the optimal locations around the world for the various value chain activities? How to run global presence into global competitive advantage? [1] Academic research on global strategy came of age during the 1980s, including work by Michael Porter and Christopher Bartlett & Sumantra Ghoshal. Among the forces perceived to bring about the globalization of competition were convergence in economic systems and technological change, especially in information technology, that facilitated and required the coordination of a multinational firm's strategy on a worldwide scale. [2] [3] A global strategy may be appropriate in industries where firms are faced with strong pressures for cost reduction but with weak pressures for local responsiveness. Therefore, it allows these firms to sell a standardized product worldwide. However, fixed costs (capital equipment) are substantial. Nevertheless, these firms are able to take advantage of scale economies and experience curve effects, because it is able to mass-produce a standard product which can be exported (providing that demand is greater than the costs involved). Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized.[3] Global strategy as defined in business terms is an organization's strategic guide to globalization. A sound global strategy should address these questions: what must be (versus what is) the extent of market presence in the world's major markets? How to build the necessary global presence? What must be (versus what is) the optimal locations around the world for the various value chain activities? How to run global presence into global competitive advantage? [1] Academic research on global strategy came of age during the 1980s, including work by Michael Porter and Christopher Bartlett & Sumantra Ghoshal. Among the forces perceived to bring about the globalization of competition were convergence in economic systems and technological change, especially in information technology, that facilitated and required the coordination of a multinational firm's strategy on a worldwide scale. [2] [3] A global strategy may be appropriate in industries where firms are faced with strong pressures for cost reduction but with weak pressures for local responsiveness. Therefore, it allows these firms to sell a standardized product worldwide. However, fixed costs (capital equipment) are substantial. Nevertheless, these firms are able to take advantage of scale economies and experience curve effects, because it is able to mass-produce a standard product which can be exported (providing that demand is greater than the costs involved). Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized.[3]
What is the salary for product manager?
It depends on the product, the company, the current employment market for product managers, and the individual's education, experience and performance.
Is No Change strategy is a positive strategy?
It is as long as the company holds a strong competitive advantage and the market is growing.
What information proves that you have applied the risk management activities?
there are intense market competition for this kind of product, and 30% market share is an ambitious but possible target records show your company failed with 15% of its new products to achieve the targets for capturing market share the product has been exspensive to develop and it is emperative that this cost is recovered
The primary means of sustaining a competitive advantage is to adjust faster to the environment than your competitors do?
Companies that are able to adapt do have an advantage over their competition. They can bring products and services to the market much quicker than others.
The growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
In the time of global market, the country with absolute advantage has more priority to open wider the global market by having a monopoly on producing a specific product that other countries cannot produce. For the country with comparative advantage, it seems that it cannot stand steadily in the global market, because the quality of their products and what they can produce, the other countries can also produce, so they are facing the risk.
1 Discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
discuss the growing importance of the global market and the roles of comparative advantage and absolute advantage in global trade?
What is the market cap for Voya Global Advantage and Premium Opportunity Fund IGA?
As of July 2014, the market cap for Voya Global Advantage and Premium Opportunity Fund (IGA) is $224,464,185.56.
What is product standardization?
Developing standerized product marketed world wide with a standerized marketing mix. OR Selling essentially the same product in the same market across the world
What is the market cap for Eaton Vance Tax Advantage Global Dividend Opp ETO?
As of July 2014, the market cap for Eaton Vance Tax-Advantage Global Dividend Opp (ETO) is $381,130,496.25.
What is the market cap for Wells Fargo Advantage Global Dividend Opportunity Fund EOD?
As of July 2014, the market cap for Wells Fargo Advantage Global Dividend Opportunity Fund (EOD) is $420,816,662.00.
What are major forces behind e commerce?
global product, global customers, global market, global resources, etc.
What is meant by global market what are its characteristics explain the traits of global market?
A product or service is sold or can be sold throughout the world,not just on one continent
How can enter in global market with new product?
Do it through a joint venture with the firm of some complementary product
What are the difference between international market and global market?
international market refers to us as a medium of trading your product in another country whiles global market is where your goods ,service, labor and financial market led to business activities in the whole world
What does procurator?
The fundamental of global sourcing is acquiring of product or services from the global market. It helps to expose the company's products or services in the global market. Global sourcing includes various activities like sourcing, procurement, supply chain management etc.
Epigenetic Therapeutics Market?
This report is a comprehensive study of the global market for epigenetic therapeutics. It describes the Epigenetic Therapeutics Market, which is segmented by product type and region.
