The Globalization of Market

The case study written by Theodore Levitt explains the significance of offering globally
standardized product and the way customization of product doesn’t contribute to the demand of
the latest markets. It encompasses subject matters of differentiating the potency of the world and
efficiency of global and multinational corporation while taking into many factors like:
technology, dictating dynamic trends among the lives of people. Thus, technology has been of
great benefit and aid within the areas of communication, travel, transport and production. It
paved way for countries who ask respect, recognition to get urge with the most latest technology.
He also cites that with globalization of markets, the multinational commercial world and
multinational corporation near the global corporation near their end.
Globalization of Market:

Technology and Globalization:

Transparency of market

Consumer:
MARKET 1. Homogenized
2. New commercial reality
Corporation:
3. Desired for most advanced
Multinational thing
Global a. Lowest price
Corporation
b. Best Quality
c. Reliability

He further states that Global corporation and multinational are two distinct thing. Multinational
corporation operates in a number of countries, many customize markets, adjust its products and
practices in each at high relative costs whereas, on the other hand global corporation operates
with resolute constancy at relatively low cost as if the entire regions are of a single entity selling
the same thing in a same way everywhere unlike multinational.
In this article, The Globalization of Markets, Theodore Levitt discusses why multinational
corporations are coming to an end. The globalization of markets is happening and more global
corporations are forming. The difference between the two is that a multinational corporation is one
that operates in many countries, and “adjusts its products and practices in each-at high relative
costs. The global corporation –at low relative cost-as if the entire world were a single entity; it sells
the same things in the same way everywhere.”1Companies everywhere cannot hide from the
globalization and standardization of products and prices. The change is inevitable. Today the
countries that pride themselves for their cultural individuality are welcoming modern products,
technology, and goods by wholesale. The Japanese have figured out what is the most affect way to
sell products. The old, outdated marketing process would be to find out what the customer wants,
what the competing product lacks, and ways to customize it for a certain market segment. The
price of this customized product would be fairly high, making it seem like it is high quality and all
customers should have it. The new strategy, that the Japanese has discovered, is not to customize
but to standardize, high quality products for a low price. With products made for certain market
segments have “global equivalents everywhere and become subject to global competition,
especially on price”.