Degree and Direction of Product Standardization and Adaptation for MNCs in Emerging Market

Abstract

This paper is about the most appropriate level and direction of product standardisation and product adaptation for MNCs in emerging markets. Alternative works in this area have discussed strategy selection between these two or one-sided analysis of how to proceed, but two separate discussions established on one-sided analysis are barely seen. Hence, the method of study is a detailed analysis of individual cases based on SWOT models and data collected from surveys targeting people living in Asia, which is a major part of the emerging markets. The immediate results from the study are that LVMH's choice of products to standardise on the international market is part of what will always be universally accepted, and that the products they choose to adapt while selling to different regions are based on cultural differences and local living patterns. And, to be along with specific to the luxury industry, more innovation in the design of products rather than being classical would also be a smart choice in the future, in order to face distinct groups of consumers. In conclusion, for MNCs, product standardisation and product adaptation are equally noteworthy to the company, the degree and direction of which is the key reason for success. Standardisation is for a better brand image, and adaptation is for better sales.