Standardisation and Adaptation in International Marketing

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Concepts of Standardisation and Adaptation...............................................................................3
Key Trends That Affect the Operations of MNCs.......................................................................3
Critical Evaluation of MNC's International Strategy...................................................................4
Key decisions for strategic development.....................................................................................6
Company background..................................................................................................................6
Activities......................................................................................................................................6
Competitive positioning...............................................................................................................6
International Issues That Tesco Faces.........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Both product standardisation and product adaptation are business strategies that help
business organisations to use their manufactured goods and services to satisfy the needs and
requirements of diverse markets. It is immensely important for large multi national corporations
(MNCs) to make use of both product adaptation and standardisation strategies on the basis of
their operational requirements, in order to effectively diversify into new global markets (Rao-
Nicholson and Khan, 2017). This report evaluates how MNCs, particularly Tesco addresses the
issue of standardising or adapting their pricing, product, communication and marketing
strategies. Tesco, founded in 1919, is a business organisation that operates within the retail
industry of UK and currently operates from its headquarters in Hertfordshire, England,
specialising in selling general merchandises and groceries to its customers.
MAIN BODY
Concepts of Standardisation and Adaptation
Product Adaptation is the business strategy commonly used by international business
organisations and MNCs, that relates to the business modifying its manufactured goods and
products with the intention to adapt the product to reach and satisfy the needs and requirements
of international or diversified markets. The international marketing operations of MNC have to
be adapted to the target market to which the goods and services are being marketed to. For
example, while targeting Islamic countries, Dove promotes using women wearing traditional
Islamic attire with scarf, while when promoting to western audience, Dove adapts its marketing
strategy and promotes using its products using women wearing western attire.
Whereas, product standardisation refers to the process through which an international
business organisation or MNC maintains the uniformity and quality of its manufactured and sold
goods and services to diverse or international markets. Standardisation is also an immensely
important strategy for business organisations when operating in international markets (Li, Liu
and Bustinza, 2019). For example all Apple's Iphone products are standardised and manufactured
to be the same using a standardised process so that irrespective of the market customer purchases
them from, they receive the same level of care and quality that Iphone provides.
Key Trends That Affect the Operations of MNCs
There are present several key trends that affect the operations of all international business
organisations and MNCs irrespective of the industry in which they operate. One of the most