The globalization of markets levitt. "The Globalization of Markets" by Theodore Levitt Essay Example 2022-11-02
The globalization of markets levitt
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The globalization of markets refers to the increasing interdependence and interconnectedness of the world's economies and the expansion of international trade. This trend has been driven by advances in technology, transportation, and communication, which have made it easier for businesses to operate globally and for consumers to access a wider range of goods and services.
The globalization of markets was popularized by marketing expert Theodore Levitt in his 1983 article, "The Globalization of Markets," which argued that the world was becoming more homogenous and that businesses should focus on creating standardized products and marketing strategies that could be applied globally. Levitt argued that the increasing standardization of consumer preferences and the rise of mass media made it possible for companies to reach a global audience and that it was more efficient for businesses to produce standardized products for a global market rather than customized products for individual countries.
While the globalization of markets has brought many benefits, such as increased efficiency, lower costs, and greater consumer choice, it has also had its critics. Some argue that the globalization of markets has led to the loss of cultural diversity and the exploitation of developing countries by multinational corporations. Others have argued that it has contributed to income inequality and the erosion of local businesses and communities.
Despite these concerns, the globalization of markets has continued to expand and evolve, and it is likely to continue to do so in the future. As technology and transportation continue to improve, it will become even easier for businesses to operate globally and for consumers to access a wider range of goods and services. However, it will be important for governments and businesses to address the potential negative consequences of the globalization of markets and to ensure that its benefits are shared by all.
Theodore Levitt The Globalization Of Markets
Providing an interesting retrospect into the market relationships in the early 90ies, the article indicates the trend toward multiculturalism and the increasing importance of diversity in the global economy as the key factors spurring globalization Levitt 98. In addition, as Levitt and Ohmae later noted, global corporations will gradually oust states as the main players in the world economy, making globalization a new source of prosperity for countries and peoples and raising living standards. Throughout his essay, Levitt argues how multinational corporations should convert to global corporations, marketing standardized products of high quality at a cost lower than that of competitors due to economies of scale in production, distribution, marketing, and 1983. . However, when the Coca-Cola Company began aggressively selling its products in China, it became clear that they were not accepted there. By translating these benefits into reduced world prices, they can decimate competitors that still live in the disabling grip of old assumptions about how the world works. Political power is particularly dependent on the activities of TNCs and their lobbying structures since TNCs directly or indirectly support political power.
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The Globalization of Markets
Data do not yield information except with the intervention of the mind. If a company treats the world as one or two distinctive product markets, it can serve the world more economically than if it treats it as three, four, or five product markets. Even though there could be benefits in encouraging the expansion of certain industrial firms due to national or global economic factors, it could also kill other historically significant firms by accident. Since some customers are willing to trade off their idiosyncratic preferences for specific goods and services to access low-priced or high-quality goods, their needs should be met. They falsely presume that marketing means giving customers what they say they want rather than trying to understand exactly what they would like. The most endangered companies in the rapidly evolving world tend to be those that dominate rather small domestic markets with high value-added products for which there are smaller markets elsewhere.
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Corporate Glocalization Strategy of Nongshim in America: The âPendulum Theoryâ of Globalized Localization
The supermarket model raises several issues with regard to Levitt. Economies of scale will not dominate, but rather economies of scopeâthe ability of either large or small plants to produce great varieties of relatively customized products at remarkably low costs. Different cultural preferences, national tastes and standards, and business institutions are vestiges of the past. The latter potential problem covers the varieties of offerings to consumer base. Globalization should be alive to the fact that counter-pressures in terms of policies and regulations for businesses from different countries affect the cost of production, hence should be put into consideration. No one is exempt and nothing can stop the process.
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The Globalization of Markets
Samsung has also decentralised its design departments, placing them in the US, UK and Japan to cater better for local tastes, but the design and other departments maintain the Samsung brand consistently in all markets. As a result, little effort would be required to overcome competition and successfully survive in the market. . And they have proliferated extraordinary numbers of operations and product linesâhighly tailored products and delivery systems for many different markets, market segments, and nations. A company must almost certainly have a local partner; a local lawyer is required as, say, in New York , and irrevocable letters of credit are essential.
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"The Globalization of Markets" Book by Levitt
These consequences are free trade caused by a reduction in tariffs and environmental costs such as pollution caused by factories and greenhouse gasses causing global warming. They have created marketing departments supported by professional market researchers of awesome and often costly proportions. Cost competition can sometimes be misguided considering different policies from various regions or countries. . After 1945, there was a revival of world trade thanks to the joint efforts of countries to overcome protectionism. The result is a new commercial realityâthe emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude.
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Theodore Levittâs The Globalization of Markets
In this case, it was obvious that, under prevailing conditions, people preferred a low-priced automatic over any kind of manual or semiautomatic machine and certainly over higher-priced automatics, even though the low-priced automatics failed to fulfill all their expressed preferences. Globalisation In Australia Essay The idea of the globalisation of Australian businesses, the process where businesses develop themselves internationally is one of the main issues in our current society. The Globalization of Markets. Almost everyone everywhere wants all the things they have heard about, seen, or experienced via the new technologies. Levitt understood globalization as a purely market phenomenon. It should be noted that a fairly large part of the representatives of this direction, nevertheless, admit the presence of the phenomenon of globalization, but only as an increase in world interdependence. This further enhances the role of global governance institutions.
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"The Globalization of Markets" by Theodore Levitt Essay Example
The specified concept helps to make the brand product homogenous and appeal to as wide a demographic as possible Robbins and Judge 143; Mehta et al. Globalization and Diversity in the Workplace With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. With the growing amount of common cultural context spread by mass media, people from different countries now have many things they can talk about, and somewhere within this common context, there is a universal demand hidden: something these people would buy despite their differences. Instead, they should acknowledge that the commonality of preferences drives globalization. From this, he continues to argue that if a company is seeking ultimate success and maintain its competitive edge, they must conform to modernity. Also, Levitt does not seem to evaluate globalization processes to address the issue of whether they are beneficial or harmful, i.
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The globalization of markets webapi.bu.edu
It contained a powerful message that was lost on managers confidently wedded to a distorted version of the marketing concept according to which you give customers what they say they want. Global corporations are, in some occasions, forced to customize products to meet the needs of their customers. Nobody takes scarcity lying down; everyone wants more. Rather than discovered, this demand is constructed by global businesses to a large extent. For instance, partnership between countries or organizations can make relations more stable, hence enable sustainable world-cooperation.
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