Download THE STANDARDIZATION/ADAPTATION DEBATE

Anna Zarkada
International Marketing Management
factors favoring standardization
Lages et al. (2008, p. 587),
• The company’s focus on industrial products for which
technical specifications are important,
• Lower costs as a result of economies of scale in production,
marketing, and R&D,
• Similarity of customer tastes and consumption patterns
across different markets that have analogous income levels and
economic growth,
• High cost of adaptation,
• Centralization of authority for establishing policies and
allocating resources,
• Strong linkage of the subsidiary and the headquarters,
• Ethnocentric orientation, and
• Foreign and domestic markets for a product are in the same
stage of development.
factors favoring adaptation
Lages et al. (2008, p. 587),
• The company’s focus on consumer products, which are more
susceptible to be influenced by individual tastes,
• Possibility of garnering higher profits by addressing variations
in consumer needs and conditions of use,
• Variations in consumer purchasing,
• Differences in government regulations,
• Cultural differences,
• Adaptation strategy followed by competitors
• Decentralization of authority, independence and autonomy of
national subsidiaries, which might develop their own products
• Foreign and domestic markets for a product are in different
stages of development
conceptual
framework
for S/A
decisions