Advantages and Disadvantages of Sta

Advantages and Disadvantages of Standardization

Standardization and international uniformity has many advantages. For one, people can expect the same level of quality of any specific brand anywhere around the world. Standardization also supports positive consumer perceptions of a product (Products and International Marketing, n.a). If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit. Positive word-of-mouth can mean an increase in sales around the globe. Another advantage includes cost reduction that gives economies of scale. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit. Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment. In addition, standardization is a reasonable strategy at a time where trade barriers are coming down. Finally, following a standardized approach helps companies aim focus on a uniformed marketing mix specifically focusing on one single product, leaving enough room for quality improvement. By emphasizing on one uniformed product, staff can be trained to enhance the quality of the product attracting manufacturers to invest in technology and equipment that can “safeguard the quality of the standardized product offering” (Products and International Marketing, n.a).

Standardization, however, poses a number of disadvantages. As mentioned previously, different markets mean different preferences. Selling one unified product lacks uniqueness. This allows competition to gain market share through tailoring their products to meet the need of a specific market/segment. Since different markets have different needs and tastes, by using the standardized approach, companies can become vulnerable. One example is Walmart’s failure in entering global markets. The retail giant faced many challenges when entering foreign markets such as Germany, Brazil, South Korea and Japan as it discovered that its formula for success in the USA (low prices, inventory control and a large collection of merchandise) did not translate to markets with their own discount chains and shoppers with different habits. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. In particular, Walmart’s experience in Germany, where it lost hundreds of millions of dollars since 1998, “has become a sort of template for how not to expand into a country” (Landler and Barbaro, 2006).

Another disadvantage is that it depends largely upon economies of scale (Products and International Marketing, n.a). Naturally, businesses that are global manufacture in many counties. This can pose a problem since a number of countries implement trade barriers such as the USA and the European Union (Products and International Marketing, n.a). In this case, adaptation is predestined.

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Keuntungan dan kerugian dari Standardisasi Standardisasi dan keseragaman internasional memiliki banyak keuntungan. Untuk satu, orang dapat mengharapkan tingkat yang sama kualitas merek tertentu di mana saja di seluruh dunia. Standardisasi juga mendukung persepsi positif konsumen produk (produk dan pemasaran internasional, n.a). Jika sebuah perusahaan menikmati identitas brand yang kuat dan reputasi yang kuat, memilih pendekatan standar mungkin bekerja untuk manfaatnya. Positif kata-of-mulut dapat berarti kenaikan penjualan di seluruh dunia. Keuntungan lain termasuk pengurangan biaya yang memberikan skala ekonomi. Menjual produk yang sama, bebas disesuaikan dalam jumlah besar dan membeli komponen dalam jumlah besar dapat mengurangi biaya per-unit. Keuntungan lain yang berkaitan dengan skala ekonomi meliputi peningkatan penelitian dan pengembangan, pemasaran biaya operasional, dan biaya yang lebih rendah dari investasi. Selain itu, Standardisasi adalah strategi yang wajar pada waktu mana hambatan perdagangan turun. Akhirnya, mengikuti pendekatan standar membantu perusahaan-perusahaan yang bertujuan fokus pada bauran pemasaran berseragam yang secara khusus berfokus pada satu produk tunggal, meninggalkan ruang yang cukup untuk peningkatan mutu. Dengan menekankan pada satu produk berseragam, Staf dapat dilatih untuk meningkatkan kualitas produk menarik produsen untuk berinvestasi dalam teknologi dan peralatan yang dapat "menjaga kualitas menawarkan standar Produk" (produk dan pemasaran internasional, n.a).Standardization, however, poses a number of disadvantages. As mentioned previously, different markets mean different preferences. Selling one unified product lacks uniqueness. This allows competition to gain market share through tailoring their products to meet the need of a specific market/segment. Since different markets have different needs and tastes, by using the standardized approach, companies can become vulnerable. One example is Walmart’s failure in entering global markets. The retail giant faced many challenges when entering foreign markets such as Germany, Brazil, South Korea and Japan as it discovered that its formula for success in the USA (low prices, inventory control and a large collection of merchandise) did not translate to markets with their own discount chains and shoppers with different habits. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. In particular, Walmart’s experience in Germany, where it lost hundreds of millions of dollars since 1998, “has become a sort of template for how not to expand into a country” (Landler and Barbaro, 2006). Another disadvantage is that it depends largely upon economies of scale (Products and International Marketing, n.a). Naturally, businesses that are global manufacture in many counties. This can pose a problem since a number of countries implement trade barriers such as the USA and the European Union (Products and International Marketing, n.a). In this case, adaptation is predestined.