The Myth of Globalization - Assignment Example

?Briefing Reading Briefing reading the myth of globalization The article focuses how organization can remain competitive in the global market. One argument is that companies should come up with global products and standards to enhance competitiveness. Other critics argue that the competitiveness can only be enhanced by coming up with products for certain markets. Greater returns can be realized by adapting products and marketing strategies to distinct markets. This, however, may lead to serious blunders. The strategies built would be product driven instead of being controlled by customer behavior and response patterns. The article, therefore, seeks to find out if success in the international market must involve development of global products. The key aspects discussed in the paper revolve around the competitive strategy created by global standardization of products. While it sounds like a good idea, the global standardization may be faced by several constraints. In one example, the globalization is hampered by differences in preference, government constraints, transport costs, tariffs and barriers to entry as well as preference of local firms. It is also quite obvious that global standardization becomes effective in a narrow range of products. The strategy may work mainly in marketing of luxury products or products whose penetration rate is similar (Wit & Meyer, 2010). This can only gain application in the developed countries where the needs of the consumers appear uniform in contrast to the developing countries. It is unfortunate that the global standardization is based on assumptions. By assuming that the needs of the customers are homogenous, planners may indulge in deriving wrong conclusions. If needs of the world were homogenous, it would be possible to satisfy the world needs. All countries would thrive at the same level of development since trade would be made easier. This is, however, not the case. The needs of the developing countries vary to a great extent to those of people in the developed counties. This would also imply all goods remain substitutable and hence reduce customer choice. Already, researchers refute the theory on homogeneity on the grounds of different lifestyles and value segments. In the United States alone, nine different value segments appear conspicuous. The assumption that customers are willing to sacrifice certain product aspects in favor of low prices lacks evidence. The trend is contrary. The assumption, that the key strategy driving global standardization is product technology; which creates economies of scale, fails to take root. It neglects the influence brought about by automation in flexible factories, which allows them to enjoy the same economies of scale, at low outputs. The assumption also fails to take into account that the final price of a product is not determined solely by its cost of production. The assumption also neglects the ideal that competitive strategy should not be wholly product-driven. It should take into account other aspects such as advertisement and promotion. The article is elaborate on exposing the various constraints that impede global standardization. The constraints do not result only from the external environment but also emanate from the internal structure of the organization seeking expansion. It is fascinating to note that the countries advocating globalization on one hand impede it on the other through trade restriction agreements. An example is the existence of the European steel and Swiss chocolate cartels. It is difficult to comprehend how the global perspective contrasts with the global standardization. The emphasis on standardization leads a reader to believe that the development of global brands is part of a global perspective. Briefing reading 2: strategy from the inside out: building capability-creating organization The article outlines some significant disadvantages associated with following suit of what competitors are doing. This could expose a company to losses since local organizations possess an advantage having created contacts with target customers. By delving deep into themselves, firms can unmask some hidden attributes which they could exploit to their advantage, and create a sustainable competitive advantage. This was the case with Citibank. They shied from the norm of copying best practice to coin their own unique products that stood the test of time. The key aspect in the article is the realization of internal structures, skills or systems which an organization can turn into unique capabilities. These resources are referred to as asymmetries. Every firm, large or small, has unique capabilities that cannot be copied by others. In other words, the capabilities are unique within every organization (Wit & Meyer, 2010). The main key in unlocking the potential of any organization to withstand market forces is to realize their uniqueness and use it as a competitive advantage. The asymmetries create an added advantage in that they are inherent. They just require a keen eye and reflection to identify. They could be in the form of knowledge, contacts, systems, processes, routines or even relationships. In addition to identifying the inherent capabilities, the management must then focus the capabilities to market segments from which maximum benefits can be recouped. In order to be able to identify the internal asymmetries, an organization must identify its uniqueness from the competition. This, therefore, drives them to a careful scrutiny of the competitors operation to find out where they differ. Though the basis is on the reflective of self and developing an inside-out strategy, the approach requires consideration in the marketing environment to identify where the asymmetries exist in the concerned organization. The best way of identifying the asymmetries is by asking questions such as why clients choose the organization over others offering the same service. There has to be a reference to the external in order to discover the capabilities within. The strategy presents a challenge to managers who must always be on the look out to identify the asymmetries and exploit them. To facilitate this, managers must set time aside to reflect. Reflection alone is not adequate but should be coupled with experimentation. After evaluating the capabilities, they should them be classified in terms of applicability. Some resources will appear more promising than others. Since the asymmetries keep evolving, managers must be keen to identify and note down emerging capabilities as the organization grows. An organization must also be willing to sacrifice resources to drive through the top priority capabilities. This might mean hurting other departments. The managers should also be on the lookout for opportunities matching their new found capabilities. This helps in shaping the capabilities further creating a virtuous cycle of competitive advantage. It is not quite elaborate how the ever evolving capabilities can be restricted to prolong the lifecycle (Wit & Meyer, 2010). If not patentable, the capabilities can be applied by competitors and cut back on the competitive advantage. The competitors would face fewer challenges since the cost of research has been paid by the initiating organization. The only advantage with the asymmetries is that they are hard to imitate. Bibliography Wit, B. D., and Meyer, R. (2010). Strategy process, content, context ; an international perspective. Andover, Hampshire: Cengage Learning. Read More