Global Standardization and Localization Strategy

Topic

Global standardization and localization strategy

Instructions

1. What are the main characteristics of a ‘global standardisation’ strategy, and what are
the implication for the structure of multinational enterprises (MNEs)?
a. Key Lecture Notes: Lecture 12 MNE Strategy & Structure
b. 400 Words
c. 3 References

2. What are the main characteristics of a ‘localisation’ strategy, and what are the
implications for the structure of MNEs?
a. Key Lecture Notes: Lecture 12 MNE Strategy & Structure
b. 400 Words
c. 3 References

Total words: 800

Answer preview

Global standardization strategy is characterised by focusing on standardised products and services to reap the benefits of economies of scale and low costs.  Firms adopting a global standardization strategy focus on augmenting profitability that results from reduced costs at the global markets, location economies, learning effects and low cost advantage at the global scale. Global activities including production, marketing, and research and development activities are concentrated in a few locations deemed suitable (Bhalla, 2013, p. 445). Standardization strategy is more applicable to industrial products such as semiconductors that seek to meet universal needs.

Word count: 968