Discuss the strategies used for adapting products to a globa

Discuss the strategies used for adapting products to a global market. Which strategy is best?

Solution

Adaptation

Production and promotion adaptation strategies are used in a global market for a product that may be popular but needs to be adapted to meet local customs and demand. For example, customers of less affluent countries may need a product of similar quality that has been downscaled to be more affordable to purchase. Technology products must be altered to meet the specific language of the country being marketed to.

Marketing

The simulation of the marketing function explores strategies for deciding which markets should be developed, which should be abandoned and which should be viewed as mature markets. Mechanisms for investing in or exploiting markets are also simulated. A strategic approach to these simulations specifies different types of markets and simulates what happens when a simulation participant takes inappropriate action, such as investing in a mature market. The strategic approach encourages participants to explore these kinds of decisions. Such simulations let them develop an extensive understanding of how the global supply chain works.

Product Mix

While marketing simulations address business operations, simulating the product mix directly affects a simulated bottom line. Simulated parameters include pricing, product positioning and product promotion. A strategic approach to these simulations requires detailing possible pricing decisions in view of the actions of competitors, specifying possible product positioning strategies such as high quality and simulating the results of various promotional strategies. The goal of such simulations is to show the participants how product mix influences business results.

Capacity Planning

Once the strategic approach to marketing and product mix simulations is in place, a strategy to simulate business planning for the capacity to meet market demand is needed. The corresponding simulations let participants assign capacity to existing or new facilities. A strategic approach tracks costs, quality, time to market and successful fulfillment of different capacity allocation strategies. Strategic goals include showing participants the advantages of diversification of supply, the effects of full capacity utilization and the importance of quality on successful fulfillment of orders. A successful simulation strategy gives participants new tools for good decision-making.

Best strategy is to understand the culture of that country and moulding the product accordingly. For example, Mcdonalds changed its flavour fo many products in India according to Indian taste.