standardization of product strategies: – standardization means offering a uniform product on regional or worldwide base may be with minor changes. – offers substantial savings coming from economics of scale. 2. product extension – communication adaptation – takes care of difference across countries in the cultural or competitive environment. 3. product adaptation – communication extension – local market circumstances often favor or require case of product adaptation (may be due to govt.
4. product & communication adaptation – dual adaptation – differences in both cultural & physical environment across countries call for a dual adaptation strategy. 5. product invention – develop new products from scratch from common need & opportunities around the world – instead for simply adapting existing products or services to the local market conditions. – scale economics flow from the mass-production of more or less standard product components at a few sites. – popular in automotive industry core-product approach: – design of mostly uniform core-product – attachments are added to core-product to match local market needs balancing act between standardization and adaptation is very tricky.
however, the direct connection of the product strategy process and business environment to the products in the company’s product portfolio whether the company manufactures them itself or just owns the product concept is too often unclear. in this kind of scenario, the tool needed to couple the monitoring of product performance back to set business strategy targets is definitely to be found in the practices, concepts, and it-systems of product life cycle management. these firms are basically ethnocentric in their approach and adopt their own niches in foreign countries to sustain a large chunk of business. by this, product adaptations are considered as necessary strategy in order to cater to the different needs of customers in various countries.
with this, a high level of adaptation is likely to become difficult to coordinate the network of activities by the multinational in a global scale. on the other hand, while the same bicycle might be sold in china and the u.s., it might be positioned as a serious means of transportation in the former and as a recreational tool in the latter. the product core might be the same for all products in all regions. this core strategy allows for maximizing the appeal of different configurations, while maintaining a stable product base and thus reducing basic development costs. instead, a global product is designed from the outset with the goal of maximizing the percentile of identical parts to the point where local needs can be met quit .
international product strategies 1. product & communication extension: dual extension – early entrants often opt for this 3 alternative international product strategies between domestic and foreign markets 1) product extension: companies the search for different strategies that take account of the balance between the standardization of products across, factors affecting international product strategy, factors affecting international product strategy, international product strategy ppt, international product strategies pdf, international marketing strategy. an international product strategy encompasses all decisions that relate to the firm\’s product and services offerings in the international marketplace. for example, decisions on standardisation or customisation of the communication strategy often depend on whether the product is standardised or locally adapted.
international product strategy regarding global standardisation and local adaptation is one of the challenges faced by thus, when companies have opted for an international marketing strategy of product adaptation, they have to change their product – altering to fit the needs of your new market. if you notice that the current offering of, types of product strategy, product strategy pdf
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