Yogurtland strategy
Yogurtland is a chain of cafes and restaurants where people can buy frozen yogurt. Yogurtland operates in the United States of America mostly; however, it has several international branches which are a part of global franchise. The major features of the brand are self-service and a big number of different tastes. Yogurtland plans to expand even more in the future. Franchising is an effective model of business for this type of organization; nonetheless, it is necessary to consider what strategies are suitable for the company on an international market.
The core element of Yogurtland is its frozen yogurt. Even though many companies also sell it, Yogurtland is able to provide a variety of tastes and different menus which are attractive to the customers and relatively cheap, especially when compared to prices of the competitors (Delevingne, 2013). However, people across the globe have various preferences when it comes to a specific taste. What is popular in Los Angeles might be hated elsewhere. In order to maintain success, Yogurtland should adopt product localization, instead of product standardization, particularly in foreign countries (Carpenter & Dunung, 2012). The taste of the products is vital for company’s success, as people will not purchase frozen yogurts they do not like.
Product localization (or product adaptation) refers to a strategy when the company changes the product according to the needs of a specific location. The features of the product remain the same, while there are some changes which are more traditional or habitual for customers abroad (Carpenter & Dunung, 2012). For instance, Yogurtland has to provide different sets of tastes in the US and in the United Arab Emirates. The same concept should be applied in countries, where company will enter the market and expand its business (“The Global Marketplace”, 2014). Localization helps to understand preferences of people better and provide the product which is beneficial and popular among foreign customers.
Apart from that, product localization helps in adjusting the product in accordance with the legal requirements which exist in the country. For example, a specific component is banned in a group of countries, while it is legal elsewhere. In order to be eligible to sell the product, the company has to localize the product; otherwise, it will not be able to enter the market (Carpenter & Dunung, 2012). In some instances, the name of the product might be associated with something negative and with localization, the company can modify the brand and its logo, avoiding many risks and potential failures (Jeyarathmm, 2008). There are also might be religious and ethical norms which can influence the popularity of the product, and localization considers unique features of the market to adapt and sell the products.
The company should also aim at multi-domestic strategy to sell and promote the products. A centralized system is not effective within the organization such as Yogurtland. It heavily relies on franchising and independent decisions which do not relate to the brand’s image (Carpenter & Dunung, 2012). Multi-domestic strategy helps to create and sustain a decentralized system of business operations. International branches can operate on their own unless it contradicts the values of Yogurtland or its quality of service (Carpenter & Dunung, 2012). For instance, this strategy helps to understand the local needs and target audience in the country. For a big business as Yogurtland, centralized structure will mean constant delays and lack of timely decisions. The branches can make their own decisions without the approval from the main office; hence, it will save time and increase independence within the company.
Micromax Strategy
Micromax Informatics is an Indian company which specializes in manufacturing cheap mobile phones. The company faces severe competition in India and the rest of Asia since there are lots of powerful brands, such as Huawei, Xiaomi, and Samsung. Company plans to expand its business in Eastern and Central Europe. One of the first steps for Micromax is to enter the Russian market of mobile phones (Anwer, 2014). The major problem is serious competition and the domination of popular brands on the market; however, the current state of the company shows it is able to succeed in its niche market of low-budget electronics.
The company focuses on the production of cheap mobile phones, which is a very popular trend in India. The prices of modern smartphones can reach up to $1,000 or even more, depending on technical features (“Micromax: Cheap and best”, 2014). It is a significant sum of money, and not everyone can buy a gadget for this price. Instead of using expensive and luxurious phones, people tend to buy low-budget ones, which can be easily replaced and have almost the same high quality of flagman phones. Therefore, the main value of Micromax products is its cheapness and high quality in a segment of low-priced phones. For the company it is necessary to preserve this policy, as well as its price range. Price and quality are two primary reasons why people buy Micromax phones.
In order to expand, the company has to apply product standardization with the elements of adaptation. The phones should remain untouched in terms of technical characteristics as they are the same in every country (Carpenter & Dunung, 2012). The size of a display is the same, shape of the phone remains the same. Hence, to maintain the low price of the phones and their availability, Micromax should use standardization. The same phones prove to be replaceable, cheap, and popular among people. Taking into account that for Russian customers expensive phones for $1,000 are too expensive, Micromax’s low-budget policy has to attract a lot of people. Additionally, the standardization saves resources for the company because the product is ready for the foreign market (Carpenter & Dunung, 2012). However, standardization has to consider certain elements of adaptation.
For instance, the company has to consider that in Russia and Europe, people have to use phones with localized software, supporting their native language. Hence, the gadgets should include Russian and English languages for the interface; otherwise, people will not be able to use them. Micromax should also consider the names of the phones (“Micromax: Cheap and best”, 2014). Certain titles of the devices and different models should be easy to understand and memorize, such as iPhone X, instead of a long name. It can help to attract people and make the lines of the smartphones more interesting for the customers.
Apart from that, the company has to use a global strategy as its primary method to achieve success. The global strategy helps to support product standardization. The strategy also increases the activity of foreign branches within the context of entire organization (Carpenter & Dunung, 2012). A centralized structure maintains order and cooperation with the main office. The offices cannot make independent decisions without the approval from HQ. However, it helps to avoid mistakes and creates organic hierarchy which effectively functions. At the same time, the global strategy helps to develop a single system of values and principles which can reduce potential risks of foreign offices.
References
Anwer, J. (2014). Micromax to Foray into Russia, Sell Phones, Tablets (Hardware). Web.
Carpenter, M., & Dunung, S. (2012). International Business. Flatworld Knowledge.
Delevingne, L. (2013). A look inside why private equity loves ‘FroYo’. Web.
Jeyarathmm, M. (2008). Strategic Management. Mumbai, India: Himalaya Publishing House.
Micromax: Cheap and best. (2014). Web.
The Global Marketplace. (2014). Web.