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Douglas and Wind (1998)Management > Global Marketing Management > Lectures > Independent Research > Douglas and Wind > Standardise? > More on Standardisation?
More on Standardisation?The mentioned developments in flexible factory automation mean that companies can serve smaller markets with no need for global operations. Diseconomies may, in fact, result from global economies, owing to transportation, co-ordination, communication, and distribution costs. Factories in foreign establishments will also help immunise firms from political changes and fluctuating exchange rates. Flexible automation also means that changes can be made quickly and cost-effectively. Production, in many industries such as detergents and pharmaceuticals, are only a tiny part of the overall cost, and that more focus should be on understanding customer behaviour and tailoring the products to suit them. For other products, an effective distribution network is more important than scale of production of marketing. The author points out that the standardization philosophy is mainly product-driven and ignores the possibility of the standardization of other business functions, such as promotional advertising, distribution systems, and pricing.
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