Homework 2

Task 1: “Think” and “Reflect” Questions - based on the lessons so far

1) Explain the difference between standardisation and customisation. Standardisation means that companies learn to operate as if the world were one large market – ignoring regional and superficial differences (Levitt). To speak specifically, executives aim to sale the global products what are the best-value product with high quality, best technology and low prices in different national markets. Its mission is modernity and its mode, price competition, even when it sells top-of-the-line, high-end products. It knows about the one great thing all nations. Moreover, the strategy of standardization not only responds to worldwide homogenized markets but also expands those markets with aggressive low pricing. Furthermore, the standardisation pays more attention on the extras such as status, brand image and promotion. And the total cost of designing is lower than that of customization. While, compared to customization, it focuses on understanding customers. To be speak specifically, depending on the cultural diversity, the executives pay more attention on realizing the choice criteria of customers, the purchase ways of customers, the purchase frequency. Its mission is to design the different products based on the different needs of different national customers. It knows a lot about a great many countries and congenially adapts to supposed differences. Moreover, due to the different designs, it need to pay more cost on product design.
| |Standardisation |customisation |
|pros |Economies of scale; |Respect local specifications and |
| |Faster set up time; |expectations;