Assignment 5.1 Reflection Paper of online blog about globalization strategy PDF

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Reflection Paper of online blog about globalization strategy...

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A standardization strategy is used when a company treats the whole world as one market with little meaningful variation. The assumption is that one product can meet the needs of people everywhere. A standardization strategy produces efficiencies by centralizing many common activities, such as product design, gaining scale economies in manufacturing, simplifying the supply chain, and reducing marketing costs. Although, the author stated that in global markets profit, performance is positively correlated to marketing program and to a lesser extent to process standardization which means that marketing has a more influence in generating profit than standardization. I believe the author of the article does not agree with adapting global standardized strategy. He believes that developing a good relationship with the customers is the first step to take to have a good position in the global market. He argues that the concept of global standardized strategy will not be applicable to every enterprise engaged in global trade because they should still consider the language differences, customs, and government requirements in each local area. Although, I do agree with what he believes in that firms should have relationship orientation rather than marketing orientation because to compete globally, a firm must first get the trust of the customers. Just like personal relationships, it's important to cultivate and nurture customer relationships. When organizations develop strong relationships with their customers, it can lead to loyal clients, positive word of mouth and increased sales. The author also said that because of neglecting the local customs, many MNE are having a hard time adjusting to local responsiveness. Therefore, recognizing how culture or local

customs can affect international business is something that should be understood to avoid misunderstandings between participants of global trade, and to make sure that businesses are presenting themselves to their new market in the best way they can. In conclusion, I think it would be better if MNE adapts the global standardized strategy together with considering the local customs or the differences between nations to be successful and have a peaceful global market....