Advantages of standardization of products. The Advantages of Selling a Standardized Product 2019-02-16

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Advantage & Disadvantages of Standardisation and Adaptation Strategies Essay

advantages of standardization of products

Consumer nondurables, including food products, are the most sensitive to differences in national tastes and habits, making them more likely to need changes for various markets. The more effective zero-based approach would be to empty everything, and add back only the items that are essential. The business thus benefits from both the economics of buying products in bulk, which results in a lower cost per unit purchase and selling products in large quantities. In the article on measuring total cost, the easy procedure to used to quantify overhead would be to split the material overhead so that standard parts are charged 10% of the total material overhead and the unusual parts are charged 90% to a reflect the real costs and b to encourage use of the standard parts and materials. It is well known that the standardized signs play an important role in places such as airports, railway stations and highways for instance. The advantages of standardization is that it helps cuts costs by lowering installation costs, reducing need to maintain large inventories, and lowering maintenance costs thus also allows a company to take advantage of economies of scale when purchasing supplies.

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Benefits of standards

advantages of standardization of products

The owner is usually absent. Usually speedsup production of low-volume products. Advantages: Because of its toxicity, lead is being … bought less and less around the world, which of course results in the lowering of its cost. Experiment and research: A large concern can afford to spend liberally on research and experiments. The business also has the opportunity to research on techniques to input on the product to increase its quality standards and improve the consumer base.


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Global Marketing Strategy

advantages of standardization of products

Standardization also helps in laying down conditions for using the process, product or service, as otherwise any failure of the process, product or service due to improper use may be attributed by the users to a deficiency or lack of quality of the process, product or service. Advantage: Expand Your Target Customer The U. Possibility of depression : large-scale production may result overhead production. If a company builds up a customer base that serves a specialized market, standardizing its processes may mean it loses some of its former customers. Being able to order larger quantities of standard parts and materials provides purchasing leverage where buyers can benefit from suppliers economies-of-scale and arrange more frequent deliveries, to support just-in-time operations.

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Article on Standardization as a Cost Reduction Strategy.

advantages of standardization of products

It is also convenient for settling disputes, if any with the suppliers. This onward march of globalization and internationalization of businesses has had a strong impact on how companies view and plan for their global marketing strategy. Information linkage must keep pace with technology growth. The goal of this study is to analyze the degree of standardization vs. The output of the process of standardization is the creation of standards. Many researchers agree that standardizing certain elements of the marketing mix and adapting others to different market conditions is necessary Vrontis and Thrassou, 2007. Yet it is summarized in a straightforward step-by-step manner below.

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The Disadvantages of a Standardization Business

advantages of standardization of products

Cost leadership With this strategy, the objective is to become the lowest-cost producer in the industry. But there are situations where this product standardization gives negative results as well. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. The new standard or amendment of the existing standard is given wide publicity by the standardization organization. She has written continually since then and has been a professional editor since 1994. By 1928, national standards organizations had been established in 16 industrialized countries. Economy in rent: A large-scale producer makes a saving in rent too.


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The Advantages of Selling a Standardized Product

advantages of standardization of products

One advantage of electricity is that we have a more convenient way of life - light, power to our house, etc. Reduction in Costs Standardization of a product allows an enterprise to sell its product in large quantities. McDonald's and Coca-Cola are two examples of companies using this strategy. In Lean Production, Build-to-Order, and Mass Customization, economies of scale are realized at the level of part and raw materials. Further, the committee is required to have a balance of members who can represent the needs of both suppliers and consumers. The advantages of standardization is the consistency of the product throughout the world and the cost savings from having identical the product.

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What Is Product Standardization?

advantages of standardization of products

Stifles Creativity and Response Time Standardization has the potential to get a business into a rut. EssayBasics is the right choice. As stated earlier, the output of the process of standardization is the creation of standards. Instead, they should embark on market research and determine their customers, their needs and wants. Some three decades later, seller market conditions, which prevailed for some time after the Second World War, put consumer interest under threat. Not only will you save on production costs, you can standardize installation instructions and decrease testing costs. They may also be other products that are locally made which would.

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Advantages And Disadvantages Of Standardization, Essay Sample

advantages of standardization of products

It helps improve the management and design with less customization needed, enabling interchangeability of components, and provides practical application of expert knowledge enhancing operability and improves performance. For reaffirmation of an existing standard, the process to be adopted is same as that of creation of the new standard. It is not unique in anyway. While it may be cheaper for a restaurant to buy its trademark hamburgers in bulk, if it expands into a new market where people buy chicken much more often, its standardization measures may make it slower to respond to market conditions and end up costing money. At the same time, this will cause less wastages in material usage as well and reduces the cost. Many perhaps all market segments in the industry are supplied with.

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Product Standardization vs. Product Adaptation

advantages of standardization of products

This paper will examine some of the reasons these decisions are made. Lack of adaptability : A large scale producing units find it's very difficult to switch on from one business to another, in a depression small firms are able to move away from declining trades to flourishing ones easily. If you can't afford to lose any of your resources, mass production wouldn't suit you. That is because the earth has natural magnetic poles which give life and energy to all things on this planet. This in turn improves the overall quality and thereby improves the confidence of the customers.

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Global Marketing Strategy

advantages of standardization of products

The other advantage of the standardization is that it has a positive effect in the formation of strategic alliances between different organizations; it is quite clear that the merger of companies concerning the matters of standardization is beneficial in that the outcome of synergy can help with the reduction of costs as well as increasing profits of business. Retrieved November 12, 2013, from 8 Levitt, T. By minimizing the differences in your products, such as by making them interchangeable, you are able to rapidly increase production, streamline distribution, decrease raw material costs and reinforce product branding. You can have a unique selling point. Customers tend to save money when combining all three instead of buying separate services. If a production's action is executed, it is said to have fired. These are wasteful competition, which does not to society.


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