It is challenging to serve the global market, because there is a need to meet customer needs at the same time minimizing the cost of production. In some markets, products can be sold to clients without adapting them to the local needs. However, in culturally sensitive environments, a marketer is required to adapt the products made for the international consumers to local needs. This essay will evaluate the debate on adapted versus global products for the international markets parable of the sadhu
Manufacturing products for the global market consumption is beneficial to manufacturers, because mass production creates economies of scale. When a company has economies of scale, its cost of production reduces significantly. As such, global products are preferred to adapted ones, because they increase a corporation’s profitability by reducing its expenses on production.
On the other hand, there are customers in the international market with unique needs that cannot be satisfied by global products. Consequently, firms must adapt the global products to meet the standards acceptable to the customers. Creating modified products increases the cost of production, because it requires that a company modifies the global product to meet the peculiar customer expectations in various localities.
The decision on whether to manufacture global or adapted products depends on the benefits that would accrue in both cases. The cost of creating adapted products must be evaluated against the potential gains. In case the market cannot meet and exceed the cost of adapting the products, the manufacturer should abandon the differentiation. On the other hand, when a market has a potential to meet the production cost and earn profit, adapting the products becomes of paramount importance for the marketer.
In conclusion, the debate on whether to manufacture global or adapted products must be based on the cost-benefit analysis. While adapting global products to meet local needs may increase a company’s market share, it also raises the cost of production. Producing global goods reduces the cost of production. The choice of the goods to produce depends on the advantages of each alternative.