Standardization, however, poses a number of disadvantages. Also, they are to understand that the preparation of a standard needs consensus where the views of various parties are to be accommodated. Not only do these excess parts incur overhead costs to administer them, they also lower plant efficiency and machine utilization because of the setup caused by product that are designed to have more parts than can be distributed at every point of use. And the decision as to which to choose depending on the attitudes towards the different cultures. If necessary, modify your products so similar components can be used. It's more accurate than a h … and drawn design. In the rush to produce output quality may suffer.
The foreign markets may be cut off by war or some other political upheaval this makes the business risky. So in this article, we are going to cover these two concepts so that you can have an idea about the two concepts in depth. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a foreign market. Stifles creativity and response time is the disadvantage of the standardization. Eco-friendly products usually mean that their production or certainly use doesn't damage the environment, for example, made from biodegradable material that will not contribute to the large landfill sites or cause toxic waste, so firstly this helps the appearance of the environment the safety, many … reduce the effect of global warming, acid rain and various other environmental problems, many wastes can be hazardous to animals etc. Suppliers of peripherals may realize that they can save costs if an interoperability standard can be used by all.
If costs remain within the standards, Managers can focus on other issues. Retrieved November 12, 2013, from 11 Nanda, K. Without the earths natural magnetic poles, life would cease to exist. Advantages from standardization, beyond direct cost and quality improvements, include i the process becomes more reliable and the variations in quality shrink, ii lesser expenses in development of innovative new practices as well as in the administration of processes, and iii comparison of the performance between different departments of the organization becomes easier. As the products are not needed to be inspected, the customers even of far-off places send purchase order on the basis of standard, grade, size, measurement etc. Article on Standardization as a Cost Reduction Strategy.
Standards, once implemented, soon become the status quo and may become entrenched in the corporate culture, making them hard to change when change is needed. According to him, companies can achieve long-term success by concentrating on what everyone wants rather than worrying about the particulars of what everyone thinks they might like. Goods of uniform quality are turned out irrespective of the preferences of individual customers. Standardization helps cut costs when the company produce the same products and reuse the established marketing and distribution systems where the company gets economies of scare benefits in production and buying. Additionally, the presence of one product number regardless of its location in the market assists in reducing inventory errors or delivery of the wrong product.
By the turn of the 19th century, standardization was already recognized in industrialized countries as a powerful tool to increase productivity through interchangeability and reduction of variety. According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. By minimizing the differences in your products, such as by making them interchangeable, you are able to rapidly increase production, streamline distribution, decrease raw material costs and reinforce product branding. Standard costs can greatly simplify bookkeeping. Intel's enforcement goal was not 100%, as might be required for a totally flexible operation, but we felt that even 95% usage would result in significant material overhead savings. Technology gradient is a dynamic component of the technology management process, to be monitored for strategic advantage. Economy in rent: A large-scale producer makes a saving in rent too.
Why is cost leadership potentially so important? Manufacturing recommended that the screw be three-eights of an inch long so that it would not tumble as it was fed to auto-feed screwdriver. In order to achieve this, three research questions were asked: To what degree do firms migrate between international marketing strategies within the framework of standardisation and adaptation? Dove promo International Version There are mainly two types of product adaption methods. It's faster than hands or any other relevant form of creating or moulding plastic. Usually speedsup production of low-volume products. Lack of adaptability : A large scale producing units find it's very difficult to switch on from one business to another, in a depression small firms are able to move away from declining trades to flourishing ones easily. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit.
In the Phili … ppines, for example, there are numerous tribes, 7,107 islands, and 171 languages - many of which have been long forgotten. Technical barriers arise when different groups come together, each with a large user base, doing some well-established thing that between them is mutually incompatible. It limits the scope of market. On the other hand, supporters of the adaptation approach emphasize the apparent dissimilarities between the markets of different countries, especially those for consumer goods, and prefer using international differentiated marketing programs. If you want to know more, I suggest that you hire a … freelancer at Freelancer. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. This also simplifies the communication process in the business departments or in the exportation process, as there is reference to only one product and one product number.
The digital revolution has made it possible for small businesses to expand their reach beyond the domestic market and to tap into a segment of the international audience that is interested in their products and services. The ability to identify itself with similar characteristics regardless of where the consumer is helps create a positive image of the product and attract customer loyalty. This reduces confusion or mislabeling of specific items that actually qualify as other types of resources. Standardization may also stifle creativity, particularly in product design. If a production's action is executed, it is said to have fired.
Continuous education and training in a constantly changing workplace is a necessity, not a luxury. This develops and expands of any products. Standardization for safety aspects also broadly covers the requirements to ensure the safety of equipment e. It helps you to be recognised and noticed. Put in other words, standardization would deny the employees a chance to learn new skills.
Currencies that are backed by gold maintain very stable exchange rates over long periods of time. Gaining the benefits of both approaches requires companies to not only standardize various marketing mix elements and marketing strategies, but also to follow adaptation where essential in order to satisfy apparent market needs. As a stand-alone program, standardization can reduce cost and improve flexibility. About the Author Fiona Miller is a resident of Vancouver, Canada. The main commercial advantages of standardization are i technical interchangeability, ii compliance with regulations, and iii improved customer confidence. Through standardization conflict between departments and processes can be eliminated thus encouraging the team work.