Page 185 - GLOBAL STRATEGIC MARKETING

some of the most successful products start off as domestic products with
a SWYG strategy. The SWAB strategy has been used for a long time. For

decades, international brands have used global products to position their
brands as global brands. For example, the French followed a SWAB
strategy by selling their Cheddar cheese in the UK. The SWAB approach

is very close to the differentiation approach, but while it is responsive to
market needs it does make considerable demands on the firm’s

development. The disadvantages of the SWAB strategy are that it is able
to penetrate only one market at a time, and it also makes competition with
the local firm very difficult. In addition, it is sometimes difficult for a foreign

company to establish credibility as a supplier of products that have a
strong domestic demand.

According to Woods (2001, p. 204), modifying the product to consumer
taste is not the only factor. There are others to be taken into account.
These are:

• Is the company’s aim short-term maximum profits or a long-term
market share?

• Will standardisation of the product bring market demand down to an
uneconomic level?

• What sources does the company have to cope with the additional
work created by differentiation?

• What would be the cost impact of product modification on
manufacturing, distribution, marketing and financing?

• What impact might product changes have on the market profile of the
product in other countries?

• Should the product be sold under a brand name, and should that
name be global or local?

7.7 Managing the product life cycle overseas