Article’s Central Theme
The main theme identified in the article “The Globalization of Markets” is that business organizations should learn to operate as if the whole world was a single market. By so doing, such companies will be able to ignore every superficial national and regional difference. The author uses this central theme to deliver several lessons to the reader. The article explains how a number of firms have been disillusioned when it comes to the concept of international business. Many companies have customized their products in an attempt to address the diverse needs of both new and existing markets.
Many Japanese corporations have discovered that all markets have several things in common. The author indicates that all markets have an overwhelming desire for world-standard, dependable, and low-priced goods. Global corporations should use this notion to deliver the best value to all people, attract the greatest number of consumers, and eventually realize their business objectives.
The modern global firm is currently promoting the best approaches in order to achieve its potentials. This firm is no longer adapting to the existing differences between (and within nations). Instead, such a global corporation is seeking to force standardized products and services on the whole globe. Such corporations offer what the global consumer expects. Such products are usually characterized by high quality and reliability. Such companies have been observed to reshape the vectors of globalization and technology. By so doing, these firms have been able to address the challenge of competition.
The article encourages international companies to embrace the power of globalization and use uniform strategies that can compete in every corner of the world. They should at the same time offer quality and affordable products to their global consumers. They can also choose to differentiate their marketing strategies whenever targeting specific regions. However, the most important thing is being able to produce globally-acceptable products and market them at reduced prices.
The above approach has the potential to produce the targeted results and attract more consumers. The lesson obtained from this article is that corporations that do not adapt to this global reality will definitely become insignificant or unsuccessful. The author teaches the reader that global companies will be able to achieve long-term success if they concentrate on what every global consumer expects. This means that such companies should no longer worry about the needs and details of diverse individuals or consumer groups.
Critical Analysis
This article has presented something meaningful to me. I have always understood that business organizations should be on the frontline to use the most desirable marketing strategies to realize their goals. Some class materials have also argued that companies should use appropriate strategies in order to capture the attention of different consumers with diverse needs. However, this article has presented strong arguments and lessons to explain why companies that want to achieve their potentials should have a global approach.
The author argues that global companies should no longer focus on standardized products for their consumers. Instead, such companies must focus on the best measures to offer standardized and advanced products to their consumers. Such products should also be low-priced in order to capture the attention of more potential buyers. In order to support this thesis, the author has given several examples. For instance, Pepsi and Coca Cola have been using standardized business models to deliver quality products in every corner of the world. By so doing, such companies have continued to attract more customers in different parts of the globe.
The article also gives several examples to explain how certain companies have been unsuccessful. This is the case because such firms have been using customized business models. A company operating globally will work hard to standardize its offerings in every part of the world. Standardization should only be used whenever every possibility has been tried and exhausted. The use of standardized products has been observed to increase the level of competition from other players.
The author goes ahead to use the concept of the earth is flat to explain how the world is currently characterized by numerous similarities. Such similarities are also evident everywhere. A global approach is critical towards delivering different products to the greatest number of customers. These arguments should be considered by every company that wants to compete globally.
However, the arguments presented in this article can be challenged because some products might not be marketed worldwide. This is the case because some products should be customized because different markets tend to have diverse needs and expectations. The issue of culture is not addressed in this article. The cultural attributes associated with different regions across the globe will significantly influence the marketing strategies used by various companies. These issues should be considered by companies that are planning to market their products to different consumers.
Main Takeaways
Despite the above weaknesses described in this article, the most agreeable fact is that the ideas presented by the author can make a difference for many companies. Theodore Levitt indicates that the preferences of consumers tend to converge thereby forming new economies of scale. Such developments result in reduction of prices and production costs. That being the case, companies should focus on the benefits of globalization and technology.
By so doing, such firms will be able to offer simultaneously quality and standardized products to their consumers in every corner of the globe. Such products should also be characterized by reduced prices in an attempt to realize the targeted profits.
Basically, the article explains why corporations should learn to treat the world as one single market with similar requirements and expectations. These companies should also be ready to ignore every superficial national or regional difference in order to achieve the targeted goals. Companies that have failed to consider these issues have become disillusioned and unsuccessful. While focusing on the changing expectations of new markets, such companies have been unable to achieve their potentials. Most of these firms have also lost more customers.
The most important thing is for different companies and entrepreneurs to apply the knowledge obtained from this article wisely. To begin with, companies should be aware of the forces associated with globalization, innovation, and technology. These forces have become uniform across the globe. Business corporations should use modern technologies to produce and market superior products using uniform models in every corner of the world.
Such products should also be characterized by low prices. This goal can be realized through the use of standardized production processes. These lessons will make it easier for more companies to attract more consumers and eventually achieve their business objectives. In conclusion, organizations that fail to adapt such global realities will eventually become obsolete.