Keith Head's 'Elements of Multinational Strategy'
- The identity of the four giant DE BEERS
- The diamond pipeline
- The different diamond industries
- The gross diamond industry
- The jewelry industry
- The life cycle
- Competitive forces
- Developments and various strategic scenarios
- Possible developments in the diamond market
- The future of the rough diamond market
- The future of the jewelry market
- Diamond mining industry
- Possible strategies for De Beers
In his book, "Elements of Multinational Strategy," Keith Head addresses the need to adapt a product to a targeted market. In chapter 7 of "Market Adjustment", he discusses the subject of international trade. An analysis of this chapter provides some answers through the comparison between product standardization and customization for a target market and the benefits and costs of customization of these products. The author offers some answers about the main reasons explaining the cause of differences between products.
The result is equivalent to the final version but has different characteristics. Through several examples, including those of Theodore Levitt, it is possible to understand that it provides through its claims- during 1983 - a firm in the context of globalization, must standardize its products if it wishes to retain its commercial position; hence the fact that the needs and desires of individuals from different countries, are homogenized.Therefore, he deduced that the end products of local businesses should be standardized.
To justify his view, he relies on three criteria including the new cosmopolitan culture, the politics of a large production leading to low prices (resulting from the allocation of fixed costs over a larger number of units), focus on basic goods(staples).
In this chapter some types of "anomalous" property (or shopping goods) are cited as examples:The washing machine: depending on the country targeted in the example (whether it be Italy, Britain or France),applications in terms of features will be different (function, size, power, etc) as some specific actions are required more so for certain countries.
- Also the example of the Ford car whose name differs by country (Mondeo everywhere except in the United States where it is known as Contour), and some technical characteristics.
Tags: Keith Head's Elements of Multinational Strategy, Market Adjustment, the need to adapt a product to a targeted market.