message to the targeted market, and it helps capitalize on the global opportunities available to utilize universal trends, values and the consumer need worldwide. Potential drawbacks could be seen in various
ways such as; limiting competitiveness and growth potential because there is more of a chance of ignoring differences and nuances of each market, there is the potential of vulnerability to local competitors because they offer more customized solutions, there could be a reduction in flexibility and responsiveness to the market fluctuations and feedback, and finally there is a risk of alienating customers who value the local traditions, diversity, and personalization (LinkedIn, N.D.).
The benefits of customizing outweigh standardization because your marketing strategies are being adapted to the specific characteristics and preferences of each targeted market. And when implemented as planned it increases relevance and satisfaction by meeting the needs of the local targeted customers. It improves competitiveness and differentiation with unique propositions, solutions, and experiences that match the local market conditions. Customizing your marketing strategy builds trust and loyalty of the local targeted market by showing respect, understanding, and responsiveness to local cultures and values. Furthermore, it fosters innovation and creativity, in addition to adaptation and learning throughout the organization. Unfortunately, there are some drawbacks to customization. There is a potential increase in the costs of resources, and research and development due to an increase in need. It
could likely complicate operations, logistics, and management, in addition to complicating marketing and
communication. There is a possibility of it diluting the brand identity and consistency, quality assurance and control. There is always the potential of being exposed to cultural misunderstandings that could cross over into legal issues. And furthermore, it could require more coordination and collaboration across the organization, requiring more man hours and new team building (LinkedIn, N.D.).
After careful analysis of both the factors, the benefits and drawbacks, and my research, there really is no clear answer here because they are all risks. There are many, various, business decisions that come with risk. Going into unchartered territory is certainly a risk even with the best research, the best product, positive consumer feedback, the understanding of every international barrier in the path of distribution, the credit to back such a venture, and a worldwide brand recognition. However, strategic risks are a type of risk that can potentially have a positive impact on the performance and operations of an organization if implemented correctly (Indeed, 2022). To minimalize the risk factor there needs to be a balance of standardization and customization by adapting to peripheral aspects, mix and matching components according to market preferences, and it wouldn’t hurt to look at co-creating with local customers to get an even better idea of culture, traditions, and need. This concept is often implemented depending on the conditions in many national marketplaces and as said in our textbook having a truly “globalized” product is generally an illusion (Hill, 2021).
Referenced:
Hill, C. L. (20210118). Global Business Today, 12th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781264209620
Indeed. (2022, September 30). What is Strategic Risk and How to Manage it: A Definitive
Guide. Career Development. Retrieved from https://www.indeed.com/career-advice/career-development/strategy-risk
