Essay Sample on Global Standardization: A Perfect Choice for Fashion Industry

Introduction

The best approach that the company can opt for is global standardization. Taking into account that the firm is in the fashion industry, this approach could be a perfect choice. The focus of globalization is to use standard marketing in an international environment. The methods often allow the company to use similar marketing design from one country to another and across varying cultural contexts without having to make a change. In cases where a product has a similar appeal all over the world, then it is possible to use the same marketing approach.

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Standardization can work for the company because of several reasons. First De Mooij (2018) argues that there is a union of culture with similar environmental and customer demands across the world. Over time the trade barriers are decreasing, and the advances in technology are leading firms to focus on a global orientation (Rao-Nicholson & Khan 2017). Therefore creating a single strategy for the global, all the market can help in creating the consistencies with the clients in addition to lowering the cost. Stoian et al., (2017), also state that firms that are well managed have moved away from customization of goods and are now focusing more on global standardization of products that are reliable functional and meet the needs of the clients (Efrat, Gilboa, & Yonatany, 2017). Besides, firms experience success through the focus on the client's needs than focusing on the particulars of what every individual thinks they must do. Therefore, the approach of standardization could be better for the firm.

Pros and Cons

It is essential to understand the reasons why the company would opt to use global standardization. In the cases where a client in the U.S uses a product in a particular way, and another person in Japan uses the same product, in the same way, then standardization is the best approach (Efrat et al., 2017). However, it is essential to understand the positive impact.

One of the reasons is that the approach is cost-effective. With this approach, the firm would not have to incur an extra cost to market a product in the different regions. The firm would only develop a single marketing strategy that would be applied in all its markets and thus cut the cost of developing several marketing approaches (Efrat et al., 2017).

Secondly, the approach helps in branding. One brand can have a similar impact on different regions of the continent. An aspect of the business that attracts customers in one part can still be used to attract clients in different areas.

However, there is still a negative aspect associated with the use of global standardization. One of the cons is the aspect of sensibility. A product might be accepted and appreciated in one country, but clients in other regions might have a different opinion about it. For instance, in the western nation, a car might be seen as a basic need while in the developing world, it might be seen as a luxury (Efrat et al., 2017). Besides, the firm might decide to sell and market its fashion products using sensual advertisement in the western world. However, in the nations that are still more conservative, the message would need to be more rational. With such unique features in different markets, the business might be forced to customize market approaches for each region of the world.

Market Entry Strategies

One of the market entry methods is direct exporting. In this case, a firm can decide to venture for the first time into a market that it has chosen using its resources. In most cases, companies would use agents or distributors when seeking to venture into a new market (De Villa, Rajwani & Lawton, 2015). The agent and distributors would work closely with the firm with the focus of representing the company's interests. However, with direct exporting the agents or distributors are bypassed.

The other approach that a firm can use is franchising. The method has been effective in North American for rapid market growth, but it seems to be taking shape in other parts of the world. The model is quite effective for types of business that have a repeatable model of business that can be replicated somewhere else (Ekanem 2017). One of the companies that have used this model successfully is KFC. The company has several franchises in many parts of the world and seems to work quite well.

The other model is partnering. Patterning is an essential approach to use when entering a foreign market or in some regions of the world. The approach to partnership might vary, ranging from co-marketing to strategic alliances (Wan et al., 2019). The plan is quite practical, especially in the cases where the social, business, and culture of the two regions are substantially different (Cheptegei & Yabs, 2016). Having a local partner often provides the necessary information on how to venture into the local market. Besides, there are some regions in the world that do not allow foreign companies to venture into their markets; in such cases, the only option that a firm might have is to focus on partnership. A franchise like Got Talent has partnered with several local companies to start the same business in the different regions of the world.

References

Cheptegei, D. K., & Yabs, J. (2016). Foreign market entry strategies used by multinational corporations in Kenya: A case of Coca Cola Kenya Ltd. European Journal of Business and Strategic Management, 1(2), 71-85. https://www.iprjb.org/journals/index.php/EJBSM/article/view/123

De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Retrieved from http://uk.sagepub.com/en-gb/eur/global-marketing-and-advertising/book258834

De Villa, M. A., Rajwani, T., & Lawton, T. (2015). Market entry modes in a multipolar world: Untangling the moderating effect of the political environment. International Business Review, 24(3), 419-429. https://doi.org/10.1016/j.ibusrev.2014.10.001

Efrat, K., Gilboa, S., & Yonatany, M. (2017). When marketing and innovation interact: The case of born-global firms. International Business Review, 26(2), 380-390. https://doi.org/10.1016/j.ibusrev.2016.09.006

Ekanem, I. U. (2017). Diaspora entrepreneurship and international market entry strategies in the emerging economies: a learning process. Retrieved from https://www.semanticscholar.org/paper/Diaspora-entrepreneurship-and-international-market-Ekanem/5586c1c5af6f02b21fbf4b9f5bc8434a8b165818

Rao-Nicholson, R., & Khan, Z. (2017). Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions. International Marketing Review, 34(1), 138-158. https://www.emerald.com/insight/content/doi/10.1108/IMR-12-2015-0292/full/html

Stoian, M. C., Rialp, J., & Dimitratos, P. (2017). SME networks and international performance: Unveiling the significance of foreign market entry mode. Journal of Small Business Management, 55(1), 128-148. https://doi.org/10.1111/jsbm.12241

Wan, L., Orzes, G., Sartor, M., Di Mauro, C., & Nassimbeni, G. (2019). Entry modes in reshoring strategies: An empirical analysis. Journal of Purchasing and Supply Management, 25(3), 100522. https://doi.org/10.1016/j.pursup.2018.11.002