1. What is Levitt’s basic premise or idea? What impact will technology and globalization have on a multinational corporation’s business strategy?
Theodore Levitt’s article on the globalization of markets is one of the most reliable essays on the topic of globalization. Unlike his other collogues, Levitt was one of the first scholars to write an influential, high-impact article aimed at business managers. Levitt’s basic premise consists of multiple of ideas. His first claim was that due to new technologies, consumer habits are converging; and his second claim was that these converging habits make the previous practices of multinational corporations antiquated and thus unsuited to the new, globalized world. While previously, large corporations …show more content…
Customers will prefer world-standardized products if the prices are down and the quality is high-end. Large companies who operate out of a single country do not have the capacity to normalize everything, so they have multiple product lines and distribution channels. Companies are successful because they know that to adapt to demand requires search for opportunities in different markets that are similar in ways to make the sales happen. Levitt’s main idea was homogenization. Products like petroleum, steel, sugar, calculators, and technological devices are standardized and sold the same way in any other country by companies that sell them.
3. Do you agree or disagree with his premise and does it withstand the test of time? Why? Provide at least 4 examples supporting your …show more content…
Levitt’s first premise, that technology is one of the main vectors behind converging consumer desires, is quite obviously exemplified in today’s world. Nearly everyone has a cell phone and is able to access it., which is incredible. There have been many studies that have shown that technology has done wonders for companies and for the people. In a world such as this, it is almost impossible to imagine that global tastes for high end products have not converged. Certain products are seen as a symbol in almost every part of the world that have some type of technology capacity. Apple products are very big by foreign consumers with a controlling desire to get their hands on an Apple device. In some places, possessing multiple apple iPhones is seen as an ultimate symbol. Monster is another product which has become globally standardized and follows Levitt’s premise of standardization. The brand’s marketing strategy includes hosting extreme sports events all across the globe which millions of people watch and want to use the same products that athletes are seen using them as they compete in the tournament. Another brand that has been standardized but still has distinctions among the different regions is Papa Johns. Papa Johns has a customizable menu to increase new toppings and a bigger variety of things someone can put on their pizza.
Theodore Levitt’s article on the globalization of markets is one of the most reliable essays on the topic of globalization. Unlike his other collogues, Levitt was one of the first scholars to write an influential, high-impact article aimed at business managers. Levitt’s basic premise consists of multiple of ideas. His first claim was that due to new technologies, consumer habits are converging; and his second claim was that these converging habits make the previous practices of multinational corporations antiquated and thus unsuited to the new, globalized world. While previously, large corporations …show more content…
Customers will prefer world-standardized products if the prices are down and the quality is high-end. Large companies who operate out of a single country do not have the capacity to normalize everything, so they have multiple product lines and distribution channels. Companies are successful because they know that to adapt to demand requires search for opportunities in different markets that are similar in ways to make the sales happen. Levitt’s main idea was homogenization. Products like petroleum, steel, sugar, calculators, and technological devices are standardized and sold the same way in any other country by companies that sell them.
3. Do you agree or disagree with his premise and does it withstand the test of time? Why? Provide at least 4 examples supporting your …show more content…
Levitt’s first premise, that technology is one of the main vectors behind converging consumer desires, is quite obviously exemplified in today’s world. Nearly everyone has a cell phone and is able to access it., which is incredible. There have been many studies that have shown that technology has done wonders for companies and for the people. In a world such as this, it is almost impossible to imagine that global tastes for high end products have not converged. Certain products are seen as a symbol in almost every part of the world that have some type of technology capacity. Apple products are very big by foreign consumers with a controlling desire to get their hands on an Apple device. In some places, possessing multiple apple iPhones is seen as an ultimate symbol. Monster is another product which has become globally standardized and follows Levitt’s premise of standardization. The brand’s marketing strategy includes hosting extreme sports events all across the globe which millions of people watch and want to use the same products that athletes are seen using them as they compete in the tournament. Another brand that has been standardized but still has distinctions among the different regions is Papa Johns. Papa Johns has a customizable menu to increase new toppings and a bigger variety of things someone can put on their pizza.