Globalization Ph.D. - Essay Example

Globalization Globalization-the advent of technology changes has made entire world into a global village. The time barriers, distance barriersand the complexity of process barriers are eliminated. The span of the markets is huge. The levitt's theory was an analytic study of the global trends and the evolution of globalization as a major driver for the modern business. The competition barriers have reduced as there is scope for moving to the new places where there is low reach for the product. The contemporary humans are well aware of the needs. The advent of the modern communication systems made the companies to identify the possible markets for their goods. The saturated markets are no more a worry for the companies as the markets are wide opens for them to explore. The global markets have certainly provided new marketing opportunities. As the communication is advanced, the connectivity increases people will get a chance to know the happenings round the world. People will have the chance of gaining the knowledge of the unique products available in the neighboring world. The global need and wants by the people would be perceived according to the availability of the concerned products. People are in search of products with high end technological excellence, better quality, and with more features. The migration of people for the developed countries to the various other parts of the world spread the product knowledge. The change in the lifestyles and more westernization in most parts of the world created markets which are huge and more lucrative than the home countries market. As the people migrated so as their habits and culture and life style were introduced to the new place where the migratory introduced his way of life to the host country. Universally the needs and wants are the same for every individual but the different people perceive the same need and want in different way. The better way with more technology and the usage of more unique products will entice the host population to product used by the visitors, thus the desire for the more enhanced products will arise. The host populations slowly divert from their normal native product and strive to perceive the visitor's modern product range. Multi national corporations who market the products gradually moved their products to the new markets with high demand and tried to establish their brands. Standard products need exists in the same way everywhere steel, chemicals, petroleum, cement, agricultural commodities and equipment, industrial and commercial construction, computers, semiconductors, transport, electronic instruments, pharmaceuticals, and telecommunications, to mention some of the obvious. Mc. Donald advanced an extra mile and introduced unique food itineraries to the other parts of the world with its fast food outlets. The commonality in the preference of the humans has had forced the inevitability to welcome a universal product .Mc Donald theory has proved to the perfect example as the company marketed the same food products to the global market .Mc Donald is truly global in its terms as it has molded the organizational performance according to the external environment they were in. Mc Donald's exemplifies levitt's theory as it has evolved into world class food chain establishing in nearly hundred countries identifying itself with the environment. According to the levitt's theory Mc Donald's has identified appropriateness value-the best combinations of price, quality, reliability and delivery suitable to that with respect to design, function, and even fashion. Levitt stated that a company forces costs and prices down and pushes quality and reliability up-while maintaining reasonable concern for suitability-customers will prefer its world-standardized products which was implemented by Mc Donald's in every outlet it has opened. A truly global mission is modernity and its mode is price competition, even when it sells top-of the-line, high-end products which was ably done by Mc Donald's. Global organizations believe in identifying entire universal markets in one unique market arena. The global organizations will have distinct strategies which were fallowed by Mc Donald's, The Company as stated by Levitt implemented products which are unique to their respective regions. Mc Donald's served the native delicacies along with the standard menus items served in common world wide. This strategy has influenced Mc Donald's to localize its global brand into the market and get close to the perceptions of the locals. This strategy enables to project the value given to the customer. The company as stated by Levitt senses the opportunities in different countries and the volume of business that the market can offer for the company and enter the market to compete with the existing players. The levitt's theory hold good for the Mc Donald's case as Global competition spells the end of domestic territoriality, no matter how diminutive the territory may be as it clearly depicts from the growth ratio of the number of outlets in nearly 100 countries. When the global producer offers its lower costs internationally, its patronage expands exponentially as the brand value and the standards it offers when compared to the local brands. It not only reaches into distant markets, but also attracts customers who previously held to local preferences and now capitulate on the lower prices. According to Levitt's evolutions of marketing concept resulted in more advanced managerial applications and are eager to offer what customers clearly wanted rather than what was merely convenient. Mc Donald's have a unique training systems where the employees are trained at the hamburger university to hone their skills according to work culture of McDonalds. The wider a company's global reach, the greater the number of regional and national preferences it will encounter for certain product features, distribution systems, or promotional media. The above statement was applicable to Mc Donald's as it has the daunting task of unifying the delicate issues of the regional beliefs and customs fallowed in that regions in countries like INDIA, Israel etc. Company sustainability depends upon how they handle the regional issues and mould themselves to the situation which was the success of the Mc Donald's worldwide. Read More