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Essay / Product standardization in the international market...
IntroductionThis article first talks about product standardization in the international market and the problems associated with non-customization of products. The report demonstrates the need to shape the product value proposition according to the needs of each market by studying two real-world case studies:; Starbucks and EuroDisney. Secondly, this article discusses the opening of foreign investment in India and how companies are competitive in the Indian market with the help of Coke & Pepsi Case Study and Fair and Lovely Case Study . The case studies are analyzed and compared by applying elements of the international marketing task diagram (Cateora et. al, 2012). Cases 1 and 2: Starbucks and EuroDisney. “As current markets become saturated, new ones must be found. With globalization, companies should provide standardized products to all countries rather than customized products for each country. as stated by Theodore Levitt (1983). In the case of Starbucks, the domestic market in the United States and Canada reached its saturation point in the mid-1990s, where they began to cannibalize sales of existing coffee shops with the introduction of new ones. The company operated more than 10,000 cafes in the United States and Canada, which, in addition to coffee, offered high-speed Internet access in 1,200 of their cafes. Starbucks had succeeded in transforming coffee into a premium product (Vishwanath & Harding, 2000) with its $3 lattes. When it comes to the slowing economy, people have started cutting back on their spending. With saturated markets and a slow economy, the company wanted to increase revenue by expanding into European markets. As in the case of EuroDisney, they already had theme parks operating as...... middle of paper..... .nd's Dreamlike Success", Japan Quarterly, vol. 35, no. 1, pp. 58. Holt, D, Quelch, J and Taylor, E 2004, “How Global Brands Compete”, Harvard Business Review, 82, 9, pp. 68-75, Business Source Complete, EBSCOhost, accessed May 17, 2014. Levitt, T 1983, “The globalization of materials”, Harvard Business Review, 61, 3, pp. 92-102, Business Source Complete, EBSCOhost, accessed May 17, 2014. May 15, 2014. Ratnam, C 1998, 'Multinational Companies in India ', International Journal Of Human Resource Management, 9, 4, pp. 567-589, Business Source Complete, EBSCOhost, accessed May 17, 2014. Vishwanath, V and Harding, D 2000, "The Starbucks Effect", Harvard Business Review, 78, 2, pp. 17-18, Business Source Complete, EBSCOhost, accessed May 10, 2014. Wetlaufer, S 2000, “Common Sense and Conflict”, Harvard Business Review, 78, 1, pp. 114-124. Complete, EBSCOhost, accessed May 17 2014.