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What are the advantages and disadvantages of standardizing the product offerings for a...

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farid911 | eNoter

Posted October 17, 2011 at 12:54 PM via web

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What are the advantages and disadvantages of standardizing the product offerings for a branded hospitality chain?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 17, 2011 at 1:03 PM (Answer #1)

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The major advantage of standardizing the products on offer is that it builds up a brand that can be recognized by everyone.  A person stopping at a McDonald's for example, knows exactly what they are going to be able to get.  It allows them to have confidence in the particular store they are stopping at because they know it through its branding and its standardized products.

The major disadvantage of such standardization is that it robs the individual stores or franchises of any serious uniqueness.  To use McDonald's again, when a McDonald's in Honolulu, Hawaii and one in New York City are essentially identical, there is no sense of place.  This may not matter for fast food restaurants, but it may be more important in sectors of the hospitality industry like hotels.

So, the major tradeoff is between the security that comes with being part of a standardized brand and the uniqueness that comes with a lack of standardization.

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