Test II

1. What is global product design? (Explain and Discuss, cite examples)

Global products are those products that are marketed internationally under the same brand name,
features and specifications across countries. Global products are different from regional products or
brands, which are specific to a particular region. Global product design has the same attributes as local
product design with the primary focus on the user’s needs. However, the key items that the global
product has to address are the right product architecture and complex feature matrix, adapted go-to-
market plans, and localization.

One example of global product is the Starbucks. Their success is attributed to real customer experience
around coffee consumption. The emphasis is on classy design, cozy atmosphere, custom made coffee,
friendly staff, and fast service. Simple hacks such as adding round tables so that the customers who
come alone don’t feel lonely show how much they care and pay attention to little details. They are one
of the signature parts of the every-day life of Millennials and social media has managed to promote their
brand even more. By offering the same high-quality service all around the globe, they share the thought
that we are all connected in some way. The famous coffee brand was also one of the first within the
industry to capitalize on developing and implementing a valuable CRM system. They furthered the firm’s
brand image by adding a personalized reward system via mobile applications.

The main benefit of having a global product design is the overall product’s success. Localized products
with the proper architecture adapt easily to different countries, scale faster, and are more likely to be
accepted by users. Markets with different cultures, economies, and regulations can mean a product that
succeeds in the US might fail in Europe.

2. Ideas can come from a variety of sources through

a.) Supply chain based

A supply base is defined as the portion of a supply network that is actively managed by a buying
company. The buying company, referred to as the focal company, manages the suppliers in the supply
base through contracts and purchasing of parts, materials, and services. To facilitate better management
of a supply base, we observe “complexity” as a key area of managerial consideration and apply the
literature on complexity to the supply base. Supply base complexity is conceptualized in three
dimensions: (1) the number of suppliers in the supply base, (2) the degree of differentiation among
these suppliers, and (3) the level of inter-relationships among the suppliers. Four propositions have
been formulated in terms of four major areas of research within supply chain management—transaction
costs, supply risk, supplier responsiveness, and supplier innovation. Examples of supply chain activities
include farming, refining, design, manufacturing, packaging, and transportation.

Although a reduction in complexity may lead to lower transaction costs and increased supplier
responsiveness, in certain circumstances it may also increase supply risk and reduce supplier innovation.
Therefore, reducing supply base complexity in general may be a cost-efficient approach, but blindly
reducing it may potentially decrease the buying company's overall competitiveness.

b) Competition based

Competitor based pricing is commonly used to test product pricing, especially if you’re new to the
market. It requires thorough research on what your competitors are doing, what they offer and at what
price they offer in order to arrive at your own pricing strategy. When you’re just starting to acquire your
first few customers, there might not be enough data to understand the pricing fit from your customer
base. Moreover, it is apricing strategy where businesses use competitor prices as benchmarks. For
example, let's say a pasta sauce company matches the price of its competitors.

Therefore, your competitor data which has been in the market for a while can aid you with the same,
while testing the waters.

c.) Research based

Evidence-Based Practices or Evidence-Based Programs refer to individual practices (for example, single

lessons or in-class activities) or programs (for example, year-long curricula) that are considered effective
based on scientific evidence. To deem a program or practice “evidence-based,” researchers will typically
study the impact of the resource(s) in a controlled setting – for example, they may study differences in
skill growth between students whose educators used the resources and students whose educators did
not. If sufficient research suggests that the program or practice is effective, it may be deemed
“evidence-based.”

Evidence-Informed (or Research-Based) Practices are practices that were developed based on the best

research available in the field. This means that users can feel confident that the strategies and activities
included in the program or practice have a strong scientific basis for their use.   Unlike Evidence-Based
Practices or Programs, Research-Based Practices have not been researched in a controlled setting.