Global Product Development Strategies

Instructor: Tammy Galloway

Tammy teaches business courses at the post-secondary and secondary level and has a master's of business administration in finance.

In this lesson we'll define globalization. You'll learn about these important considerations to bring a global product to market: product development, design, packaging, labeling, warranty and service policies.


In today's technologically advanced world, companies can easily find new markets through globalization. Globalization represents a organization's ability to operate internationally. While this new horizon provides enormous opportunities, many factors exist when creating a new product for a new market. Let's see how a new product enters the international market.


New Product Development

ABC Corporation started as a local business and has grown exponentially across the United States. Jared, the CEO, gathers a team of executives from each division to create a new product for international expansion into Zapza. Here's an overview of their presentation:

  • Marketing, ABC completed substantial market research to identify a their target market. They determine a customization of one of their products will sell well in Zapza, Widget123.
  • Advertising, identifies the most popular mediums to advertise Widget123. In this meeting, they show a simulated advertisement in which the executives are impressed.
  • Legal, the company's attorneys present entry strategies into Zapza. They explain these options:
    • Franchise, granting an individual the rights, blueprint, policies and procedures to open a corporation in the likeness of ABC in the states.
    • Direct exporting, shipping and selling the product directly to customers.
    • Partnering, identifying a company similar to ABC Corporation and allowing them to sell Widget123 to their customers.
  • Accounting/Finance, the accounting analysts completed a cost/benefit analysis using all the information from the above departments to determine profitability and viability of Widget123. So far, the numbers look great using the partnering entry strategy.

Jared's pleased with each presentation and afterwards says, 'Let's get started!'

Product Design

ABC executives collaborate with their perspective departments to revise the product's design. Four main elements exists to a global product design:

  • Platform is where ABC designs different versions of Widget123 for individual markets within Zapza.
  • Localization, ABC identifies Zapza's product requirements (speed, safety, functionality). Then they match those requirements to each market within Zapza.
  • Quality, ABC outlines a process whereby they test each variation of Widget123 to ensure durability and consistency.
  • Culture, marketing completes additional research to determine the consumer's characteristics in each of Zapza's market to meet consumer's demands and needs.

Afterwards, the company explores Widget123's packaging and labeling options.

Packaging and Labeling

ABC's branding department presents the Widget123 in its new package and label. Jared and the other executives love abstract purple and red packaging. The branding manager explains the considerations undertaken prior to creating the new packaging:

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