Standardization is the degree of bar of varying of procedures, merchandises or services over a period of clip as stated by Slack N. et Al ( 2007, p. 17 ) .Standardisation harmonizing to Bradley F ( 2005, p. 5 ) is considered by many authors to be arguably a better attack to international selling than localization of function. As companies reach more and more people in the international market it tends to go hard to maintain in head the penchants of each and every single individual, community, civilization. The cost for research to foretell their penchants and demands are comparatively high, and to get the better of this, companies rely on standardization. Harmonizing to Slack N. et Al ( 2007, p. 129 ) administrations sometimes try to predominate over the costs incurred trough high assortment with the aid of standardizing their merchandises, services and procedures. An illustration can be of the vesture industry, although most of the sizes and forms of each single varies from one another the makers of these apparels merely come up with certain limited figure of sizes. These sizes are standard although might change in the measurement units, and are green goodss to reasonably fit most of the clients body forms. If the makers were to supply clients with big scope of sizes, or if they were to custom-make each and every apparels for better client satisfaction so both these schemes would significantly impact on the cost.
Advantages of Standardization
Some of the ground as to why standardization is preferred over localization of function is given by Bradley F ( 2005, P. 6 ) who says that there may be a higher gross revenues caused due to consistency in the merchandise image across the universe. Furthermore he adds that costs can be reduced by fall ining production activities and traveling in to low cost location without compromising on the quality and obtaining fiscal systems that are related to coming up with a individual standardized selling program. More grounds for standardization are given by Phillip C. et Al ( 1994, p. 366 ) who says clients are non confined to national boundaries, advanced thoughts can be exploited, standardization besides gives an international trade name image. Other illustration, as in the instance survey in the book by Slack et Al ( 2005, P. 18 ) will demo as to how an improbable industry has inculcated standardization to cut down cost and draw in clients. Formula 1 is an international hotel concatenation who serves clients at an low-cost monetary value, and to provide to all their penchants it would go extremely dearly-won. To get the better of this they have adopted standardization as one of the rules. They have standardised suites, same sort of furniture adjustments, etc in all their hotels. Here one can see that how standardization allows Formula 1 to efficaciously pull off their costs, and besides makes it easier to market themselves to their clients.
Is Standardisation the reply?
One can see from above illustrations that standardization makes it easier for companies to cut down costs, reduces design complexnesss, less emphasis on the selling professionals to make market research, standardised merchandise lines therefore less hassle in maintain them. But would all these advantages make a company choose standardization as their market scheme, non needfully. This is because non all industries prevail utilizing standardization as their scheme as shown in the undermentioned illustration. Enron power works put up a multibillion dollar undertaking in India, which did non work as they continued to follow the standardized method of bring forthing immense sum of electricity as in their base state, which was non necessary for the Indian market and besides was bing the consumers who could non afford it.
Localization of function
Localization of function is to set the selling mix to guarantee that equal customisation exists so as to do certain the client ‘s demands and wants are met in different markets ( Quelch and Hoff, 1986 ) as cited by Bradley F. ( 2005, p. 6 ) . Globalisation gives a perceptual experience of big companies being benefitted by marketing standardized merchandise, although companies invest big sums to achieve standardization, in actuality all merchandises must be adapted up to some degree as stated by Doole I. and Lowe R. ( 2008, p. 270 ) . Here one can see that although companies strive for standardization they still incorporate some degree of localization of function to their merchandise. Similarly in one of the books by Cherunilam F. ( 2007, p. 562 ) shows the sentiment of Philip Kotler against the theories of Levitt, were Levitt says that the Earth is going one market topographic point mentioning to standardization, and Kotler disagrees and says that “ puting up selling in each state is like organ graft… what works in one state may non work in another ” . Furthermore he besides criticises Levitt ‘s work naming it a error where in Levitt province ‘s that international success of some of the companies is an illustration of successful execution of standardization.
One illustration given by both Cherunilam F. ( 2007, p. 562 ) and Doole I. and Lowe R. ( 2008, P. 270 ) is of Coca Cola where in it takes up standardized stigmatization scheme, but transforms its merchandise to accommodate peculiar sections of clients. Bradley F. ( 2005, p.6 ) gives an illustration of McDonalds, where the same beefburger is served otherwise in different states depending on the gustatory sensations and penchants. There are assorted other illustrations besides of localization of function like the trade name Liril in India is different from that of Japan, Lux is otherwise marketed in India from other parts of the universe, and Procter and Gamble markets their merchandises in the planetary market like Camay, Crest, Head and Shoulders and so on, but their characteristics differ depending on the state and besides their selling ways. One can see from the above illustrations that although companies strive for standardizing their image they still have to distinguish their merchandise up to some degree.
Challenges of Localization of function
But regardless of these tendencies localization of function still have assorted challenges to be overcome. The primary challenge would be that of economic systems of graduated table. Harmonizing to Bradley F. ( 2005, p. 6, 77 ) companies go for standardization so as to cut down cost which implies that localization of function would incur companies high sum of cost for assorted facets, such as puting up of units, research etc. Bradley besides highlights the cultural challenges which can be faced by the companies when traveling for localization of function. This can be supported by the Kotler ‘s statement cited by Cherunilam F. ( 2007, p. 562 ) who says that localization of function is like an organ graft, which of the options will work can merely be guessed, gustatory sensations of one part will differ from the other. The quality can besides be compromised, an illustration can be that of Coca Cola in India who tried to convey in low quality drinks to the Indian market, but could non prolong it as they had wellness issues and hence did non work. Government policies can besides present as a challenge, as stated by Burca D. S. et Al ( 2004, p. 115 ) says challenges for localization of function may non merely come from political perturbation but besides through altering of foreign policies by authorities as happened in India in 1973.
Decision and Recommendation
From above illustrations, sentiments and statements by writers one can see different degrees of advantages and challenges posed by both standardization and localization of function. Although there is difference in sentiments most of the writers would hold upon the fact that both standardization and localization of function are inculcated in companies up to some degree. Phillips C. et Al ( 1994, p. 365 ) says that localization of function when targeted to constellate national markets can be comparable to a peculiar signifier of standardization. Doole I. and Lowe R. ( 2008, p. 270 ) say that although companies strive to portray a standardized image they still adapt their merchandises up to some degree, giving illustrations of coca Cola and McDonalds. For concerns standardization may look like the better thing to make, but the challenges posed by localization of function would involvement seller to work on how to get the better of these challenges. Harmonizing to Doole I. and Lowe R. ( 2008, p. 271 ) the greater challenge is non how sellers overcome localization of function challenges, but how they can implement both localization of function and standardization to give cost benefits and bring forth higher grosss and good trade name value. Doole and Lowe farther say that even though cost of localization of function might look higher compared to standardization, but if placing the demands and wants of the clients are better known and could bring forth higher net incomes it might be deserving uniting both of them.