logo image

International Business

In what kind of industries does a localization strategy make sense? When does a global standardization strategy make most sense? The industry that localization strategy would make sense would be the automotive industry, manufacturing factories, and I want to stay the big chain grocery stores. By these firms customizing the products they offer to local demand, the firm increases the value of that product in the local market.

But on the downside, it involves some duplication of functions. The strategy may make sense, however, if the added value associated with local customization supports higher pricing, which enables the firm to recoup its higher costs, or if it leads to substantially greater local demand, enabling the firm to reduce costs through the attainment of some scale economies in the local market.

When global standardization strategy make most sense is when the firm try not to customize their product offering and marketing strategy to local conditions because customization involves shorter production runs and the duplication of functions, which tends to raise costs. Instead, they should prefer to market a standardized product worldwide so that they can reap the maximum benefits from economies of scale and learning effects. Licensing propriety technology to foreign competitors is

Need essay sample on "International Business"? We will write a custom essay sample specifically for you for only $13.90/page

the best way to give up a firm’s competitive advantage. Agree or Disagree?

Discuss. I would agree, companies who develop useful proprietary technologies in-house are rewarded with a valuable asset: they can either use it exclusively or profit from the sale of licensing of their technology to other parties. But if companies profit from selling their licensing they lose out on so much more. For example, let’s say a company successfully develops a new drug to treat a major disease. By patenting the process, method and end result of the drug, the company is able to reap substantial rewards from its efforts to develop its proprietary technology.

This reminds me of how cellular companies operate without selling the company, cellular companies patent there products for a long time before another cellular company can reproduce this product, by doing this cellular company A can make plenty of money on the product before competition comes in. But if you sell your license to the product you only get what you accepted and the other company could make plenty of money. What are the main advantages and disadvantages of the ethnocentric, polycentric and geocentric approaches to staffing policy? When is each approach appropriate?

Read full document

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy