1) The articles entitled “Globalization of Markets” and” “Pitfalls of Global Mar
ID: 399726 • Letter: 1
Question
1) The articles entitled “Globalization of Markets” and” “Pitfalls of Global Marketing” reveal that one size does not fit all. It is evident that are tremendous advantages can be accorded to a firm by using a standardization strategy. However, those arguing for adaptation strategies may also be correct
What are the advantages and disadvantages of customizing products? Explain your answer in detail. (You may conduct additional research and use external sources of information to explain your answer, but be sure to cite all your)
Explanation / Answer
Advantages of customizing : 1) Less competition in market
If the products are alike by every companies then there would be less competition in the market because every competitors or every other company has same product to offer the public.This will make the companies to compete less as they cannot further modify the products.
2) Low price: Because every company has a standardised product to offer they cannot keep the price as they wish and have to closely observe the pricing trends of other competitors.
3) Bargaining Power with Customers: Because the products are customized do not have much variety to offer the consumers can actually bargain with the sellers and get the product at a very low price , they can also threaten the sellers by telling them that they would buy from other sellers as they atre multiple people mselling the same porduct or service.
Disadvantages: 1) Brand disloyalty: In this if the products get customized there will be least or no loyalty from customers as everyone offers the same and that woulod not need the customers to stick to one company or brand.They can buy from any seller as the its competitor doesnot have anything special to offer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.