Analysis Of Theodore Levitt 's ' The Globalization Of Market '

1183 Words May 26th, 2016 5 Pages
Under the recent competitive market environment, some organizations have achieved big success and some companies are still struggling in the global marketplace. In Theodore Levitt’s article, “The Globalization of Market,” he illustrates his standpoint about today’s tendency of marketing, which emphasizes, “on customizing items to offering globally standardized products that are advanced, functional, reliable and low priced” (Levitt, 1983). In other words, the corporations need to concentrate on creating products through exploring customers’ needs, instead of utilizing merchandise to alter customers’ minds or making efforts to speculate consumers’ preferences. Moreover, the author also indicates the difference between multinational and global corporation. A multinational company is defined as an organization, which conducts business in several countries and maintains its products based on different interests in specific regions. Therefore, this type of corporation will cause financial burden in producing the products, because the company has to spend additional high budgets to input various raw materials for individual product. On the other hand, Levitt clarifies that global corporations sell similar commodities around the world with lower relative cost. As a result, to achieve success in the marketplace, transferring from a multinational corporation to a global corporation is an effective way.

Furthermore, Levitt uses two representative companies, Coca-Cola and Pepsi Cola,…

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