0813

Problem

What is a global product and what kinds of strategies may be employed for global product development?

Step-by-step solution

Show all steps

Step 1/3

A global product is a product that is developed and marketed to be sold in multiple countries worldwide. It is designed to meet the needs of a diverse customer base and is typically adapted to suit the cultural, economic, and regulatory requirements of different markets.

Step 2/3

There are several strategies that can be employed for global product development, including:

1.Standardization: This strategy involves developing a product that is the same in all markets, without making any changes or adaptations. This approach is typically used for products that have a universal appeal and that can be manufactured and sold at a low cost. The advantage of this strategy is that it allows for economies of scale and reduced costs, but it can also limit the product's appeal to certain markets.

2.Adaptation: This strategy involves making changes to a product to suit the specific needs and preferences of different markets. This can include changes to packaging, labeling, and instructions, as well as changes to the product itself. This approach is typically used for products that have a high level of cultural or regulatory variation. This strategy allows for greater market appeal but also increases costs and complexity.

3.Multi-domestic: This strategy involves developing a product that is customized for each market. This approach is typically used for products that have a high level of cultural or regulatory variation and that are sold in a small number of markets. This strategy allows for a high level of market appeal, but it also increases costs and complexity.

4.Transnational: This strategy involves developing a product that is customized for each market, but with a consistent brand and marketing strategy. This approach is typically used for products that are sold in a large number of markets and that have a high level of cultural or regulatory variation. This strategy allows for a high level of market appeal and consistency, but it also increases costs and complexity.

5.Glocalization: This strategy involves taking a local approach and adapting a product to meet the needs of a specific market while still maintaining a global perspective. This approach is a balanced approach where the product is adaptable to the local market but still maintains a global identity.

Step 3/3

Each strategy has its own advantages and disadvantages, and the choice of strategy will depend on factors such as the level of cultural and regulatory variation across markets, the size of the target market, and the company's resources and capabilities. By carefully considering these factors and selecting the appropriate strategy, companies can ensure that their global products are well-suited to the needs of their customers and are set up for success in the global market.