Question

Looking at your own organization (or, alternatively, at a KSA organization competing in your industry), examine elements of standardization and adaptation. You can focus on aspects of organizational design and firm processes or on product and service offerings.

Indicate how the organization achieves standardization and the associated cost advantages and how it does (or should) pay heed to localized conditions such as legal, political, geographical, behavioral, and sociocultural particularities. Give an in-depth analysis to the firm you have chosen to discuss.

please provide references and extra readings

Answer 1

Definition:

Standardization and Adaptation

Standardization refers to marketing a product in the overseas markets without altering the product in terms of quality and quantity but with little modification in packaging and labelling. While making necessary changes in the product in response to the needs of the target market is known as product adaptation or customization.

Organization: Coca-Cola:

Introduction

The Coca-Cola Company is an American manufacturer, retailer, and marketer of beverage concentrates and syrups. The company was established during 1886 by pharmacist John Stith Pemberton in Atlanta, Georgia. Coca Cola was a huge success in the US market during the 1900s. Today, this company is spread over 200 countries worldwide. The success of Coca-Cola is that they are adopting standardized product production and customized marketing strategies according to the market segments in different locations (Cola, 2011).

Illustration & Insight

The Coca-Cola product is same across all the market, the reason is that they adopt a standardized production system and formula to produce its beverage. Hereby they are achieving economic of sales i.e. bulk ordering of raw materials will reduce the overall cost. Further, this action would help Coca-Cola provide a standardized price for its product globally even after considering exchange rates, laws and regulation in a different country (Holllensen, 2004). The main advantage of Coca-Cola is that, its low-cost production, low-risk business operation and the product being highly standardized, it provides an opportunity create brand image also make the public accept any new product launched by the company in any of its international market segment (Acevedo, 2012).

Adaptation strategy that Coca-Cola primarily uses is localizing product package, language and desired look. Coca-Cola advertisements are highly customized according to the target customers in a particular market. To illustrate an example the Coca-Cola uses famous actors and cricket celebrities in their advertisements, while in Africa they use footballers. It is because Indians have a bigger love for celebrities in film and cricket, while the people in Africa have a bigger love for footballers. Henceforth, they are making adaptive advertisement strategies to maximize the sales and profit of their standardized product (Rouse, 2005).

References

Acevedo, L. (2012). Product Standardisation Strategy. Retrieved from www.ehow.com/way_5379387_product-standardization-strategy.html

Cola, C. (2011). The Coca Cola Company Heritage Timeline. Retrieved from http://heritage.coca-cola.com/

Holllensen, S. (2004). Global Marketing a decision-oriented approach, 3rd ed. Essex: Pearson Education Ltd.

Rouse, M. (2005). Localisation. Retrieved from http://searchcio.techtarget.com/definition/localization