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Global Product Strategy

The benefits of global products can be achieved by standardizing the core product or large parts of it, while customizing peripheral or other parts of the product.” E.g., most of Sony’s consumer electronic products are primarily standardized except those parts that depend on national electrical standards. Honda has gone to a system of limited, standardized platforms for its production activities worldwide. Accordingly, some have described global product strategy as a process of “standardizing wherever you can and customizing where you must.”

(i) What are the factors that are driving more and more firms to pursue a global product policy? Please briefly describe these. Which of these factors (two or three) do you feel are most important in terms of their potential to drive a firm, of your choosing, in the industry that interests you most (e.g., automobiles, banking, aviation) to offer increasingly “global” products? Why? Please elaborate your answer.

(ii) In developing global products, what strategy(s) should the firm follow, for maximal effectiveness? Please elaborate.

(iii) It is a mistake to assume that global product strategy simply implies offering the same product, using the same marketing and other approaches, worldwide. Based on your understanding of chapter 4, please describe the circumstances under which it is appropriate (or even necessary) to customize products to buyer needs abroad.

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