Manfred Daberto

Essay from the year 2003 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 2, University of Manchester, 10 entries in the bibliography, language: English, abstract: The core of a firm's international operations is a product or service. This can be defined as the complex of tangible and intangible elements that distinguishes it from the other entities in the marketplace (Czinkota, Rinkainen, 1995: 262). Product can be defined as: 'it's a bundle of satisfactions (or utilities) the buyer receives. This includes its form, taste, colour, odour and texture; how it functions in use; the package; the label; the warranty; manufacturer's and retailer's servicing; the confidence or prestige enjoyed by the brand; the manufacturer's reputation; the country of origin; and any other symbolic utility received from the possession or use of the goods' (Cateora, Graham, 1999: 355-356). The success of the firm depends on how it's possible to differentiate from other competitors. But the key factors of success can vary from one country to another country. Therefore for the firm it is important to choose the right strategy between the product adaptation and product standardisation. Product adaptation means that the firm adapts the product to the local markets. It is the process of modifying products for different countries and regions or designing new products for foreign markets. Product standardisation means that the firm sells and advertises a standardized product in the international context. But which strategy is the better one? In the following the author wants to explain the different advantages and disadvantages and work out, which strategy is the best for certain situations because it depends on the situation which strategy is better.