Answer to Question #158615 in Economics for Talha Ali

Question

Question 1: A US based multinational company designs and manufactures personal computers and operates in three continents: Asia, Australia and Europe. The computers are manufactured under contract in China. Marketing strategy is delegated to the heads of three regional groups: Asian group (based in Dubai), Australian group (based in Sydney), and a European group (based in London). Each regional group develops the marketing approach within its region. In order of importance, the largest markets for your products are Germany, Great Britain, India and Australia. The company is experiencing problems in its product development and commercialization process. Products are late to market, the manufacturing quality is poor, costs are higher than projected, and market acceptance of new products is less than hoped for. What might be the source of these problems? How would you fix them? (Marks 10 - Word Count 600)

Question 2: The top management of your company, a manufacturer and marketer of laptop computer has decided to pursue international expansion opportunities in Asia. In order to achieve some economies of scale, your management is aiming toward a strategy of minimum local adaptation. Focusing on an Asian country of your choice, prepare an executive summary that features those aspects of the product where standardization will simply not work and adaptation to local conditions will be essential. (Marks 05 - Word Count 300)

Answer 1

Question 1.

The source of these problems may be that the features of the particular markets are not fully taken into account and the production place is far from the destination markets.

Question 2.

Adaptation involves modifying a product so as to meet the local requirements and customs. With standardization, however, the products are neither modified nor are the marketing approach changed.