Advantage of product standardization in global market?

This is known as Global Standardization, which means developing standardized products marketed worldwide with a standardized marketing mix. An example of this is the Big-Mac of McDonald's. They used the same brand name and same slogan for the same product all over the world. This assumes that their is a large, similar target market that can be targeted globally. McDonald's and Coca-Cola are two examples of companies using this strategy.

The main advantage of this strategy is cost saving. Using standardized products across all your business units helps generate economies of scale. These savings can then be applied to your business' margin, lower price to consumer, or reinvested into the company for research and development. In the examples of Coke and McDonald's they use their cost savings to offer low prices to consumers, they then make their money with smaller margins spread across high numbers of consumers.