GLOBAL STANDARDIZATION STRATEGY:

A global standardization strategy consists of considering that the market is global for the
product. That is, despite the differences between nations, companies offer the same product
in all markets; helping to reduce adaptation costs and helping to identify them where they
are.

We have defined the concept of standardization as the phenomenon through which the
different global manufacturing processes converge towards a single style that predominates
worldwide and that seeks to establish similarities between each item regardless of where
they come from or where they go.

The main objective of this global standardization strategy is to adopt a low-cost strategy on a
global scale and thus generate the maximization of shareholder value. Therefore, in its
definition, it is the strategy in which the different global manufacturing processes converge
towards a single style that predominates worldwide and that seeks to establish similarities
between them no matter where they come from.

Its characteristics are increased profitability, profit growth, cost reduction. Standardization
has the advantage of increasing the level of product quality, they use a single campaign and
have lower costs.

There are some variables already identified that motivate the use of the standardization
strategy, such as:
• Economies of scale in production, marketing and management.
• Consistent and coherent image at an international level.
• Industrial products
• Convergence of legislation
• Economic integration processes.
• Homogenization of consumer tastes and demand
Some examples that we can highlight are:

• Coke:
It has the most recognized product in the world. Its international strategy of standardization
in its product is directed in aspects of design and communication, adaptation in the creation
for specific markets, distribution, etc.
Product: Traditional Coca-Cola

• McDonald's:
o In all its locations, it has a clear objective in which its main value is to deliver cheap food
with a consistent taste, fast service and a clean family environment.
Product: Big Mac

• Among other examples we also find: Gillette, Cell phones, Lego, Intel, Marlboro. All these
examples have in their products the use, taste and custom standardized throughout the
world.
…
In conclusion, this is the best tool to reduce costs and standardize a product globally without
the need to adapt the product to the market.

Some recommendations are that a way to further reduce costs is by assembling in another
country where export tariffs are the lowest.

I end with a phrase from Theodore Levitt (1983):

“A powerful force is driving the world towards a unique and converging community, this force
is technology. It has proletarianized communication, transportation and travel, making it
accessible, due to its ease and less cost, to the most isolated places and for the poorest
multitudes of the world. Almost everyone, everywhere, wants the things they have heard
about, seen, or experienced through new technological means that drive their needs and
desires. This leads more and more towards the global community, thus homogenizing
markets everywhere”