Levitts view of Global Strategy

Modern technology had been able to proletarianize the aspect of communication and transport and managed to also create a new commercial reality that is, the globalization of the world markets. Levitt noted that due to an increase in the technological skills in the above sectors, the era of multinational corporations was very close and would be useful in the market. The global cooperation foreseen however will not be able to cater for the differences in taste because it overwhelmed them to the standardization of the market products that had high quality and with low prices as compared to those that are sold by the competitors in the market. Another idea that came from Levitt was the aspect of offering individuals simultaneously high quality as well as standardized commodities under affordable prices.

Levitt’s homogenized demand led to the element of standardization of the global commodities among various individuals so that they can be able to have a significant market worth of restoring a good image for the future. , 2013, pp 50). This aspect led to the element of standardization of the global commodities among various individuals so that they can be able to have a significant market worth as well as restoring a good image for the future. Companies have to move to the global market because there is a lot of scope in this market. Furthermore, a second idea that came from Levitt was the aspect of offering individuals simultaneously high quality as well as standardized commodities under affordable prices. The author foresaw this aspect to create the satisfaction of many people because the costs of the goods in the market would be easily accessible for them.

This would ensure that organizations would always develop the best products that will help in serving the needs of the customers in every scenario. The global cooperation could effectively work in the market after carefully checking the ability of the developed ideas to function and help them to achieve the best in the long run as they interact with clients. These organizations have further been developing critical ways to try and reshape how they can coexist in the market while relating well with the clients. The global strategy and organization had therefore grown up in the past decades since the development of Levitt's ideas. Due to globalization, there had been extreme standardization of goods which had caused the customers to prefer them as opposed to the old products of the customized markets.

These organizations had proposed a broad product portfolio as opposed to single standardized ones and therefore they can offer varieties of preferences depending on the test of the customers. Due to these ideas, it had been easy for the organizations to share the investments on technology as well as the distribution of the products in the market. In addition to this, the aspect of cross-subsidization of the commodities in the market as well as the creation of different worldwide connectivity in the distribution system is significant components that enhance the success of the organizations in the global market. The patronage of the global producers has been increasing due to their abilities to offer low costs on the commodities across the international market.

This factor had made it possible for these corporations to reach distant markets and further be able to fetch a large number of customers and address their local preferences. Many producers in the modern world have therefore opted to use standardized products that are of high quality and could be easily afforded by any ordinary person to attract a large number of customers. The leading corporation for example in the microprocessor is Intel Corporation because it can give customers high-quality products at low prices. Majority of the customers have also turned out to be pleased with the low prices as opposed to the preferences as well as various other promotions in the cause of buying the product. The issue of preserved marketing and the lack of imagination had been key among the multinationals and therefore making them survive especially when the customers needed standardized easily and quality goods.

In the global strategy competition, Red Bull had proved to be worthy due to its ability to offer reasonable prices as well as crazily developed promotions. The corporation however developed products that targeted the youth but in the long run, they managed to have attracted all age groups and therefore leading to an increased flow of customers. The aspect of intuition and the ability of the organization to realize an adequate opportunity was vital for that critical success in the market. The understanding of a potential brand led the organization to convince more than just the targeted group of people. The method of promotion and the features were critical in this scenario. There is a difference between the sharing of knowledge and forcing on a single global direction within the market.

Globalization had led to increased transparency and further resulting in increased competition giving the customers to make the best choices regarding the price of goods they want to acquire. The decisions that are made by the customers in the global market often have a unique idea in the determination of who would ultimately win the marketplace. Lean chains and the value-based networks act effectively in the supply side synergies, and the demand side synergies often have some negative impacts The author asserts that those companies that are well organized have moved from the customization of items to a better standardization of the commodities and hence had developed a practical strategy which had assisted them ion maintaining a competitive advantage. The adherence of idiosyncratic preferences of consumers by some multinational corporations had made them stagger in the development progress and hence limits their ability to win the complex competition that exists in the market.

It is essential for an organization not to produce the specific commodities that customers are demanding. This is the reason why many customers prefer globalized goods because of their high quality and the essence of standardization among them. For a firm to dominate in the current world market, significant transformations in communication and transportation had to be addressed and emphasized to the maximum. Levitt’s idea has further opened into a republic of technology. In this case, significant nations such as America have worked effectively to dominate all issue with the power behind technology. The aspect of convergence had been vital in this organizations and prompted unification of all customers across the globe. Alongside this notion, it had been critical for an organization not only to try to provide customers with what he wants but also to try and understand what he’d be satisfied with when he gets.

This, therefore, had been a dominant strategy. The failing of Hoover as he decided to market his washing machine across Europe was used by Levitt to demonstrate that organizations should not fully adhere to the wishes of the public. It should be the ability of every corporation to effectively look for the exact needs of the customers within its geographical location as opposed to the general wish that these people may wish to have at the end of the day. From the failing lessons of Hoover, organizations have come to note that they should not exceed their concentration on the things that people are talking about to the point that they will end up ignoring the actual issues taking place in the market (Levitt, 2014, pp 33).

Furthermore, it would ensure that the necessary products which are standardized are in the market to ensure that every customer regardless of the geographical location is satisfied in the long run. Disadvantages of Levitt’s Globalization Globalization contributes to a quick utilization of the resources among countries and hence a fast depletion of the funds. An example in that is China that joined WTO in 2001 and within a year, the amount of coal that it was producing increased because it was in high demand across the market. There was thus a great China’s energy consumption by source after adhering to the aspect of the globalized trade. There was also a high production of coal in India following the high consumption of fuel in the world due to the issues of globalization.

The amount of the merchandise in Canada and America had been increasing steeply since 2005 due to high demand by customers and further because the amount of the product in other nations is not growing very fast. This aspect, therefore, forces those nations with oil resources to fully exploit the funds to satisfy a large number of customers who are not regionally located but internationally. Moreover, strategies of globalization have led to creation of classes in competing countries. Not all counties created standardized goods that meet all the requirements of Levitt. In this case, nations such as the United States have always been dominating the global market due to their efficient technology that often results in a reduction of the commodities prices.

The growth of food and commuting requires oil, and hence an increased price of the commodity means a reduction of the services offered as well. The transfer of jobs from developing nations to the developed ones had been evident and resulted from globalization. Majority of high manufacturing organizations are in America, China, and Japan because of their level of expertise. Despite the unification brought about by technology, the level of knowledge still had created a wider gap between nations and hence impacts their ability to withstand competitive advantage. Furthermore, globalization had been critically moving the issue of taxation from corporations and directed it to individuals. This aspect had been luring various countries that there is no need for them to produce certain commodities such as clothing for example because they can quickly acquire them cheaply across the globe.

A major problem will result when the increased level of imports could be stopped immediately. Various countries had been reliant on the developed ones for products such as computers and machinery as long as the system is open. Globalization had removed all world boundaries and hence making the world connected thus making it possible for a firm to acquire whatever products at any time anywhere in the world. Finally, Levitt’s aspect of globalization had led to a situation where if an organization fails in its operation, the failure is likely to be felt within the system hence pulling majority of them down. Because of this, everybody on the planet had been pulled in to the everyday items as a result of the part of advancement and the way that they are shabby and moderate.

Levitt figured out how to create procedures that would encourage the development of associations from being multinationals to the worldwide cooperation's. The thought behind this was because of the way that the global markets were disintegration at a rapid and could at last prompts an entire sinking of the whole market. Part of offering people all the while high caliber and besides high-quality institutionalized wares under moderate costs. This perspective was anticipated by the creator with the end goal to make fulfillment of numerous individuals because of the way that the values of the products in the market would be effortlessly moderate for them. Levitt noticed that association would have the capacity to decrease the expense and costs and further have the ability to push the quality and also dependability while in the meantime attempting to keep up the sensible worries for reasonableness, at that point the customers would naturally go for the standardized products.

An essential part of the ideal worldwide system had been portrayed to make an individual item that is institutionalized and later sold utilizing some looked for of standardized methodology. The longing for superb details with ease had made it simple for the general population to respect the presence of the worldwide companies. Theodore notes that the advancement in telecommunication had been the backbone of major companies seeking to use the best techniques to maintain the competitive advantage. Furthermore, the author tends to have underestimated and overestimated the description of globalization. An increase in technological use had made significant firms to be, and in most cases, they discuss the issues that concern the customers as the priority. Strategies of globalization have led to classes in competing countries because not all countries can create standardized goods that meet all the requirements of Levitt.

In this case, nations such as the United States have always been dominating the global market due to their efficient technology that often results in the reduction of the commodities prices. Another challenge brought about by globalization is the transfer of oil consumption from less developed nations to those that are highly designed. This implies that the developed countries must ensure that they meet the high demands of oil from the less developed nations. F. Is globalization civilizing, destructive or feeble? A critique of five key debates in the social science literature.  Annual review of sociology, 27(1), pp. Robinson, W. I. Tedlow, R. S. , & Abdelal, R. Theodore Levitt’s “The Globalization of Markets”.  The global market: Developing a strategy to manage across borders.