As I start off I will try to define the word “globalisation”, so I can move on with my argumentation on basis of this definition.
Via internet, just like in several journals, magazines and books, one can find numerous definitions and essays about what “globalisation” is supposed to be.
Just to give the reader some impression on the variety, I wrote down a few of them.
On an official homepage of the Canadian government is written: “The term “globalisation” describes the increased mobility of goods, services, labour, technology and capital throughout the world. Although “globalisation” is not a new development, it’s pace has increased with the advent of new technologies especially in the area of communications.” .
At http://www.globalisation101.org you will read “Globalisation is a term used to describe the acceleration and intensification of economic interaction among the people, companies, and governments of different nations.”.
In the opinion of Prof. Werner Antweiler “Globalisation is the process by which nationality and geographic location become increasingly irrelevant for economic activities.” .
As you recognize, “Globalisation” is a word which lacks of a definite definition. Hence I have decided to define “Globalisation” as follows.
Globalisation will be seen as a strategy of; on global basis operating corporations, with the focus on the establishment of a worldwide competitive advantage, through the use of local benefits and economies of scale. This definition is build upon the convergence-theory whereafter the interests and desires of various nations draw close. The reason is the technological and economical evolution which gradually makes cultural differences
obsolete.
Table of Contents
1. GLOBALISATION AND MARKETING
1.1 THE DEFINITION OF GLOBALISATION
1.2 THE NECESSITY OF A GLOBAL MARKETING AS A RESULT OF GLOBALISATION
2. STANDARDISATION AS AN INSTRUMENT OF GLOBAL SUCCESS?
2.1 STANDARDISATION VS. ADAPTATION/INDIVIDUALISATION
2.1.1 Reasons for standardisation/ global branding
2.1.2 Counterarguments and Barriers to standardization
2.1.2.1 Market characteristics
2.1.2.2 Development Stage
2.1.2.3 Cultural Factors
2.1.2.4 Legal Restrictions
2.2 CASES
2.2.1 IKEA
Objectives and Topics
This seminar paper explores the strategic tension between global standardization and local adaptation in international marketing. It investigates the primary drivers for standardizing global marketing mixes—such as cost efficiency and economies of scale—while critically examining the environmental, cultural, and legal limitations that necessitate tailored local strategies.
- The definition and strategic drivers of globalization.
- Economic and operational benefits of global standardization.
- Impact of market characteristics and industrial development stages on marketing strategy.
- The influence of cultural factors and legal restrictions on marketing mix decisions.
- Case study analysis of IKEA’s transition toward standardized retail operations.
Excerpt from the Book
2.1.2.1 Market characteristics
The first barrier to talk about will be the market characterisics. This abstract subsumes basically the physical environment of a country respectively a market, like the climate and topography. They are both important factors to consider.
As we talk about the climate I’d like to mention the common phrase of “selling a refrigerator to somebody who is living on the north or south pole”. Even though this seems to be a ridiculous example it still hits the crux. According to Porter, the sellers of Fridges and Air-Conditioners had to face a major problem in subtropical countries. The climate was the reason for a sharp increase of maintenance-costs. Their products just weren’t designed to withstand the predominating sand and ocean-climate in those areas. The systems actually moulded, and broke down in a short period of time.
Chapter Summary
1. GLOBALISATION AND MARKETING: Defines globalization as a strategy for competitive advantage and discusses the technological and media-driven factors necessitating a global marketing approach.
2. STANDARDISATION AS AN INSTRUMENT OF GLOBAL SUCCESS?: Analyzes the debate between standardization and adaptation, highlighting that while standardization offers significant cost benefits, real-world application is constrained by diverse market, cultural, and legal barriers.
Keywords
Globalisation, Marketing Mix, Standardization, Adaptation, Individualisation, Competitive Advantage, Economies of Scale, Market Characteristics, Cultural Factors, Legal Restrictions, Global Branding, Retail Operations.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the strategic implications of global marketing, specifically addressing why corporations strive to standardize their marketing mixes and the practical limitations that prevent total standardization.
What are the central themes discussed in the work?
The central themes include the drivers of global business, the trade-off between standardization and local adaptation, and the specific hurdles such as climate, economic development, cultural nuances, and national legislations.
What is the primary research goal?
The goal is to demonstrate that while a standardized global strategy is an ideal instrument for competitive success, it is often impossible to implement completely due to the diverse, localized realities of international markets.
Which methodology is applied?
The author utilizes a theoretical framework grounded in literature review and secondary research, supplemented by practical case study analysis to illustrate the limitations of standardized approaches.
What content is covered in the main body?
The main body explores the definition of globalization, the economic reasoning behind standardization (such as economies of scale), and a comprehensive breakdown of barriers including market topography, cultural habits, and legal environments.
Which keywords best characterize the work?
The work is characterized by terms such as Globalisation, Marketing Mix, Standardization, Adaptation, and Competitive Advantage.
How does the author categorize the barriers to standardization?
The author uses a structured classification: market characteristics (physical environment), economic/industrial development stages, cultural factors (habits and history), and legal restrictions.
What can be learned from the IKEA case study?
The IKEA case demonstrates a strategic evolution where the company moved from highly differentiated operations to a standardized core model to achieve cost control and a unified global image, while still retaining localized adaptations where necessary.
- Quote paper
- Stefan Lüer (Author), 2003, Why are so many companies trying to standardize their global marketing mixes? With examples show the limitations to this approach!, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/31375
