In what kind of industries does a localization strategy make sense? When does a global standardization strategy make most sense?

Well, localization is best used when your customers are not only in different places, but when your customers want different things in different places. This is why any company in any industry that has a diverse customer base will most likely employ aspects of localization to alter their product or services to meet a specific market demand. A company that does not have incredibly diverse clients will not need to consider these aspects of business and customer reach. For these companies a global standardization approach is best suited because it builds your brand recognition and value internationally!


Answer 2: Finding the balance between standardization and localization of the web content is one of the preeminent dilemmas that companies face when tapping international markets. Currently, localization strategy is the develop trends of multinational companies. “A localization strategy focuses on increasing profitability by customizing the firm’s good or services so they provide a good match to tastes and preferences in different national markets.” Firms often use these ways to change themselves to match local market. Most companies apply localization strategy and successful, such as KFC, Coca Cola, MTV, Motorola, P&G, etc. Several companies have created standardized products and communications that have offended people in international markets. E.g. Food industry – McDonalds, Burger King and KFC are global chains but they customize their servings for local taste and cultures, Automobile industry, Internet based industry giants – Amazon, EBay follow these localization strategies for better catering to the wants and needs of a demographic.

A global strategy is effective when differences between countries are small and competition is global. Global standardization strategy makes sense in some aspects. Firstly, firms could implement economic of scale to reducing cost in product research, product development, product marketing and produce. Secondly, the strategy helps enterprise have effective control on product global marketing; implement global standardization strategy not only reduce the difficulty marketing management but also concentrate marketing resources. Thirdly, global standardization strategy o the benefit of establish unified product image in the world, strengthen firms’ reputation and helpful to product identification for consumers. These are the advantages of global standardization strategy. By taking full advantages of global standardization strategy, McDonalds’ become one of the most famous fast food restaurants in the world. In global marketing aspect, McDonald’s use the unitary brand image and standardization distribute to achieve economic of scale; in distribute management aspect, McDonalds’ carry out operating franchise, for instance, McDonalds’ requires all chain store follow the staff rule in store location, decoration, promotion and other aspects. The global standardization strategy brought global image for McDonalds’.