Product Policies : Global Scale

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PRODUCT POLICIES: GLOBAL Perhaps the most important decision for an organization when deciding to conduct business on a global scale revolves around the product or service. Consumers around the world are exercising a greater and more diverse demand for an organization’s products and services. In order to succeed internationally, organizations must focus on the challenges that have arisen as a result of industrialized and emerging markets. Purchasing power is drastically increasing in the international environment; indicative of greater buyer sophistication and preference in how, when and why they choose to spend their money. REASONS FOR PRODUCT ALLOCATIONS Purchasing decisions are driven by retaining the highest quality products at the most affordable price, as consumers have an unprecedented level of knowledge regarding the products and services that they pay for. Therefore, entering foreign markets involves a high amount of risk. These days, becoming an innovative business is required in order to remain competitive and maintain interest for products and services in the international market. For organizations pursuing an international strategy, maintaining quality products and responding to consumer “needs and wants” may require physical or mandatory alterations be made in order to adapt to the legal, cultural and economic requirements in foreign markets. Legal Considerations Organizations must comply with the legal requirements in foreign markets to ensure that they
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