Product Alteration

1152 Words5 Pages
Whenever a company enters a new market, it is sometimes forced to alter its products to suit the new legal requirements and economic considerations in its new country of operation. The legal requirements often range from: packaging requirements, environmental-protection regulations, indirect legal considerations, and issues of standardization. On the other hand, economic considerations entail considering the income of the target consumers, price reduction or alteration for effective competition, and inflationary forces. This paper discusses seven scenarios where a product or multinational company originally from the United States and operating in the Middle East, North Africa, or in the Gulf countries was forced to alter its brand.

In conclusion, product alterations are necessary when a multinational company wants to realize improved market share and increase its profitability in a new market. Such alterations become more necessary when the company wants to make inroads in the Arabic North African region, Middle East, and Gulf nations due to their strict adherence to Sharia oriented regulations. Most firms that fail to alter their products never succeed much in the new markets. This is because product alterations help multinational brands appeal more to the local market by adapting to their ways of life and tastes.

The International Business Publications (2007) asserts that the legal environment and forms of product alteration or modifications vary from one country to another. In most Arabic states, the requirement for alteration is guided by the Sharia law in operation. Product alteration stemming from legal environments is guided by packaging requirements, environmental protection regulations, indirect lawful considerations, ...

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...pt. Retrieved November 17, 2013, from http://global.tobaccofreekids.org/files/pdfs/en/Egypt_tob_taxes_en_F.pdf
International Business Publications. (2007). Arab league: League of Arab states business law handbook. New York, NY: International Business Publications.
KFC Arabia. (2010). Halal food. Retrieved November 17, 2013, from http://www.kfcarabia.com/halal.html
Lindgreen, A., & Hingley, M. K. (Eds.). (2009). The new cultures of food: Marketing opportunities from ethnic religious and cultural diversity. Burlington, VT: Gower Publishing Company.
Philip Morris International. (2012). Health warning labels. Retrieved November 17, 2013, from http://www.pmi.com/eng/tobacco_regulation/regulating_tobacco/pages/health_warning_labels.aspx
Trading Economics. (2013). Turkey inflation rate. Retrieved November 17, 2013, from http://www.tradingeconomics.com/turkey/inflation-cpi
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