Globalization

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  • Topic: Harvard Business Review, Theodore Levitt, International Organization for Standardization
  • Pages : 1 (296 words )
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  • Published : December 16, 2012
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Globalization -the fact that our economic systems and culture are networked as part of a global system- has significance in marketing. For instance, Theodore Levitt made the case that since the world is becoming standardized and homogenous companies must adapt (The Globalization of Markets, Harvard Business Review). According to Levitt, companies have the opportunity to offer the same products everywhere and run global marketing campaigns (i.e. standardized campaigns). He attributes the main force driving this trend to technology and the fact that human beings desire similar things.

Critics to Levitt, such as Douglas and Wind, point out that standardization is only one of the options available to enter foreign markets. Levitt's thesis applies particularly well to upscale markets and especially to certain groups such as young people interested in global brands, business executives, and wealthy individuals (e.g. items such as Rolex, BMWs, Jaguars, Upscale personal items, etc). Additionally, mass appeal brands such as Coca-Cola, Levis, Nike, Apple, etc have unique opportunities for global campaigns and standardization. Nevertheless, Douglas and Wind, consider these examples exceptions rather than the rule.

Despite the fact that globalization plays a significant role on companies some authors such as Yao-Su Hu caution that the sources of competitive advantage of firms still typically lie in the home nation, and foreign sources often can only supplement national sources but are not sufficient as a substitute. According to Hu, global or stateless corporations are national firms with international operations.

References:
[1] T. Levitt. "The Globalization of Markets." HBR 1960
[2] T. Levitt. "The Pluralization of Culture." HRB 1988
[3] S. Douglas and Y. Wind. " The Myth of Globalization." Columbia Journal of World Business 1987 [4] Y. Hu. "Global or Stateless Corporations Are National Firms with International Operations" California Management Review 1992
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