(a).

The main differences between Adaptation strategy and standardization strategy

used in international marketing are summarized in the table below

Basis of Differences Adaptation Strategy Standardization Strategy

1) Product Offered Altering relevant feature Complete standardization would

of the product in
significant ways for each
and every individual
geographical market in the
product is sold.
involve designing a product that is
identical in every relevant way for
geographical market in which the
product will be sold.

2) Characteristics A product is differential A standard product does not need

from competitor’s product to have all the characteristics of the
and further the products other products buyer requires.
produced by particular
company.

3) Approach Adaptation is an approach Standardization of product is the

of detailing the approach for increasing
differentiation that exists commonality of product in the
between products and supply chain management.
services.

(b). Three(3) advantages and three(3) disadvantages of adaptation strategies and

standardization strategies in international marketing
Advantages of Standardization Strategies
1.The advantages of standardization is the consistency of the product throughout the
world and the cost savings from having identical the product. Standardization helps
cut costs when the company produce the same products and reuse the established
marketing and distribution systems where the company gets economies of scare
benefits in production and buying. It also helps improve communication and
performance.
2. The advantages of standardization is that it helps cuts costs by lowering installation
costs, reducing need to maintain large inventories, and lowering maintenance costs
thus also allows a company to take advantage of economies of scale when purchasing
supplies. It helps improve the management and design with less customization
needed, enabling interchangeability of components, and provides practical application
of expert knowledge enhancing operability and improves performance.
Standardization helps to building the product image. The simplicity aspect, of a
similar quality standard and cost for a product, attracts consumer interest. The ability
to identify itself with similar characteristics regardless of where the consumer is helps
create a positive image of the product and attract customer loyalty.
3. Additionally, the positive review by customers is beneficial for your product as
they can easily market the product’s customized qualities through word of mouth.
Improved quality also the advantages of the standardization. A business that supplies
a standardized product has a high potential for producing good quality products since
the production operations concentrate on one product. The business also has the
opportunity to research on techniques to input on the product to increase its quality
standards and improve the consumer base. The enterprise can easily identify the
statistics of the product’s popularity in the market and the factors contributing to its
decline and success in the market thus allowing it to look for the most suitable
strategy to rectify any negative feedback.
Disadvantages of Standardization Strategies
1. Since the product is the same wherever you buy it, it is wholly undifferentiated. It
is not unique in anyway. This leaves the obvious opportunity for a competitor to
design a tailor-made, differentiated or branded product that meets the needs of local
segments. Of course products have different uses in different countries (for example
cycling is a leisure activity in some nations, and a form of transport in others). Local
markets have local needs and tastes. Therefore by standardizing, you could leave
yourself vulnerable. The disadvantage of standardization is the loss of uniqueness. If a
company builds up a customer base that serves a specialized market, standardizing its
processes may mean it loses some of its former customers. Another disadvantage is
the loss of responsiveness where when a company expands into a new market, there
may be cultural differences which lead to different taste and likings of the market. In
additionally, loss of responsiveness also the disadvantage of the standardization.
2. When a company expands into new markets, especially in foreign markets,
standardization may work against the firm. While it may be cheaper for a restaurant to
buy its trademark hamburgers in bulk, if it expands into a new market where people
buy chicken much more often, its standardization measures may make it slower to
respond to market conditions and end up costing money. Besides that, Standardization
product unsuited to some aspects of business. Standardization may be advantageous in
some areas of business, such as production, but some aspects of a business should be
tailored to the customers’ needs.
3. Customer service, advertising, distribution and product pricing must be driven by
local market conditions to be successful. Stifles creativity and response time is the
disadvantage of the standardization. Standardization has the potential to get a business
into a rut. Standards, once implemented, soon become the status quo and may become
entrenched in the corporate culture, making them hard to change when change is
needed. However, market conditions often change, and companies that change
quickly are best positioned to take advantage of them. Standardization may also stifle
creativity, particularly in product design.
Advantages of Adaptation Strategies
1. Adaptation of Products
To put a company in a better position to succeed internationally, product
adjustments may be needed to incorporate the specific taste, needs and cultural
practices of the local region.

For example, KFC - which is China's most popular fast food chain - serves local
dishes like congee and egg tarts in their Shanghai restaurants. If a company
produces electronic equipment, they need to ensure their plugs and power supplies
are compatible with local standards, and that they meet local safety requirements.

2.Packaging
Your product packaging must include information that is relevant to the local
market. Translate any text into the local language using the appropriate
measurement system and currency. Ensure that packaging colors or images meet
local cultural preferences. You may have to adapt packaging or product size to meet
local market requirements. Customers in export markets may prefer to buy smaller
units, for example. Include any essential legal information, such as compliance with
regulations or local certification.

3.Product Documentation
Product documentation must also be available in local versions. Translate user
guides, operating instructions, technical manuals, and maintenance guides into the
local language. Ensure that any warranties comply with local regulations. If you
provide local customer service or after-sales support, include local contact details.

Disadvantages of Adaptation Strategies

1.Competition
Multinational companies should be prepared to face competition, both locally and
abroad, as they seek a share of the global market. Increased competition leads to
lower prices for consumers and a wider variety of available products. It requires
greater responsiveness to consumer desires and needs. In addition, domestic firms in
the host nation are forced to improve product quality and efficiency to remain
competitive. This means your MNC must have a comprehensive strategy to maintain
bottom-line results before making forays into new foreign markets.

2.Currencies
Differences in currency values can significantly affect your ability to sell products
abroad. The effects of currency crises in your target market or country affects your
exports. When the U.S. dollar is strong, demand may diminish in global markets
because your products can become more expensive for foreign consumers.
Similarly, exports will suffer if interest rates in your target nations are higher than
those in the U.S. as demand for the respective foreign currency may rise as people
buy it to invest in the country’s securities. Generally, a weak dollar is preferable if
your company relies on exports because you get more dollars back when converting
the stronger foreign currency.

3.Marketing
Having an effective global marketing strategy helps ensure that your MNC reaches
as many consumers as possible. Packaging your promotional message in a language
appropriate to each target country means aligning yourself with local markets. Your
company should develop a coherent, consistent and integrated global marketing
strategy in each region to cover essential marketing elements so that your brand
becomes a household name. Such a strategy, coupled with country-specific websites
and social media, will enhance your international expansion.