Understanding the marketplace - Essay Example

Understanding the Marketplace affiliation Understanding the Marketplace Many business organizations that have achieved success in their local setting often see the need to expand their scope to pursue global markets. This has seen many of them offer globally standardized products. There have been mixed outcomes as those with proper structures succeed whereas those with ineffective decisions flop. This paper evaluates the advantages and disadvantages of being able to offer standardized products, and hence identify the types of products that easily lend themselves for global standardization.

Organizations with the ability to offer standardized products have the opportunity of improving the quality of their products. This results from the fact that the business can conduct a survey and hence research on market trends and the techniques employed by other producers and therefore improve on their products. Statistics from a global perspective are effective when making vital decisions on production (Harrington, 2007). This is mainly because since standardized products are popular, it is easy for the producers to make an assessment on best practices that can help improve their production.

This methodology is usually effective for organizations whose performance is deteriorating, as standardization helps formulate and implement effective strategies. It should also be noted that not all organizations that sell standardized products succeed. In as much as standardization may be favorable due to many reasons, other factors such as promoting and setting at prices may make it unfavorable (Quelch, & Deshpande, 2004). This prompts local market conditions to take control of standardization.

In an argument by Harrington (2007), product decisions are crucial as they determine the success or failure of the business. Surveys show that 50 percent of businesses decline because they do not understand the market demands of their products. On the same note, two-thirds of them succeed by supplying their goods to regions where they are popular. From the statistics, it is advisable to standardize products of global consumption such as medicine and medical implements. Therefore, before a business decides to standardize its products, it should be capable of establishing whether their products into local, international or multinational categories.

This will give them hints on whether the products should be groomed for either local or international consumption. ReferencesHarrington, H. J. (2007). Business process improvement: The breakthrough strategy for total quality, productivity, and competitiveness. Boston, Mass. [u.a.: McGraw-Hill.Quelch, J. A., & Deshpande, R. (2004). The global market: Developing a strategy to manage across borders. San Francisco, CA: Jossey-Bass.