Douglas and Wind (1998)

Management > Global Marketing Management > Lectures > Independent Research > Douglas and Wind > Standardise? > More on Standardisation? > Certain circumstances > Factors > Internal factors

Internal Factors

Internal Constraints to Effective Standardization

1. Joint ventures. As other companies may have their own agendas, it can be difficult to adopt a global strategy. If a firm wishes to change, it may meet resistance from the partner or even governing authorities.
2. Acquisition. Acquiring local brands or selling them, rather than “cannibalising” the market with the global firm’s own brand.
3. Globalisation. The more established a global firm, the more likely its operations are to be diverse.
4. Forced globalisation of local management. Often, the main decisions and product development and positioning is at headquarters. This can inhibit input of local management, which can lead to them feeling that the global strategy has been ‘imposed’ upon them, or not adapting enough to the local environment.

“The adoption of a global perspective should not be viewed as synonymous with a strategy of global products and brands.”

Standardisation should be one of a range of strategic options considered by a firm. A global strategy should entail a scrutiny of all strategic options, such as adaptation versus standardisation. Douglas suggests that it helps to segment these options by framing them as a spectrum, ranging from “pure standardization” to “pure differentiation”, with most options falling in between as “hybrid” strategies.