Effect of Globalization on the Process of Designing Different Products - Case Study Example

Author: Professor: Course: Due date: Introduction Even though many countries and companies have been operating just within the local markets, it is now emerging that internationalization is coming into play. This is to mean that the previous enjoyed power in controlling people and resources as well as capital as individuals is no longer there. This is because of the interference by external forces and opening of new markets through liberalization of the world market. Globalization in this case represents larger economical, political and social environments to different companies. Further, globalization is also characterized by increased interdependence of different economies and companies across the globe. With globalization, the issue of borders or boundaries is less relevant as both consumers and producers can transact business with people from other countries. This kind of situation presents very stiff competition as many key players come into play and a variety of products and services are made available (Fischer, pp. 5). However, the most challenging part of globalization is how to design various products and services to meet the different demands presented by different markets. This is because different market niches hold different beliefs, values and perceptions on certain products. Its with this regard that this article is interested in taking a critical study on the relationship that exist between globalization and product and service design and what is the implication to different companies and markets. Research question What is the effect of globalization on the process of designing different products and services by different global companies? Research objectives 1. Explore in details the concept of globalization 2. To define in depth what is product and service design 3. Establish the relationship that exists between globalization and designing of products and services. 4. To establish the benefits and limitations of globalization The applied methodology There are various methods that can be applied in different studies. However, the author of this article chose to apply the secondary method to carry out this study. This approach provided a humble opportunity to review different literature in relation to the research question. Review of literatures as a secondary method was preferred since it provided the author with an opportunity to access into a variety of sources of information within a very short-time. This is important in saving time and meeting the deadline. However, the important part of the methodology that proved more relevant and more satisfactorily in attaining the earlier identified objectives of the topic. The two case studies that were used in this study include the one for IBM and Sony Corporation. These two cases were chosen just to illustrate how globalization has led into change in designing of products and the services of the two companies. Case 1: Sony Corporation Sony is one the leading global companies that manufacture and market quality electronic goods across the world. However, with the emergence of globalization which has allowed many company come into the industry, has forced the company to rethink about its product design and services and make them more attractive to as many markets as possible. This is to keep up with the stiff competition from other companies such as LG, Philips, Kodak and many others which provide almost similar products and services. With this regard therefore, Sony Corporation has been seen to have engaged in more advanced technologies in order to redesign its products and services in order to offer high quality to the market. Quality has been Sony’s pledge, even though it’s not an easy to sustain since many companies are in the market which can equally provide good products and services. The whole process of designing products and services at Sony started with the overall development through planning and manufacturing and redesigning of various roles and responsibilities as a high guarantee to quality service delivery. On the same ground, the company is implementing different measures to ensure continuous improvement in the design of its products and services. In the process of ensuring that the company’s products and services are designed to meet the market needs, all the company quality systems are designed from the customer perspective, the compatibility to the new technology and the easier to use the product. Finally, Sony Corporation had chosen to work with OEM/ODM companies and other suppliers of different parts in order to comply with the world standards in terms of quality and design. Important point to note is that every product is tested at the end of the design process to ascertain its standards (Sony, pp.1). IBM product and service design The IBM global software services are provided to those companies that have the intention of doing business globally. However, since the introduction of software, it has been found to have numerous challenges towards serving global customers. Some of the problems as outlined below are being addressed by the company’s engineering expertise in order to make more relevant and applicable to all customers doing global business. The design being worked on is being developed in such away that it can work in respective countries where the customer comes from. This is to make sure that the software is suitable for all customers irrespective of their countries or origin or geographical location. Further, the software that is being designed is expected to be multi-linguistic. This is to mean that it can be used in any part of the world without many difficulties. The objective of giving the software this feature is to attract more customer attention even from those who are not native speakers and users of English. This could give the company an upper hand as opposed to those other software that is not compatible to certain languages only. In addition, the software is to translate different applications, different websites, marketing materials and other documentation especially that contain legal information into different languages. The same as Sony, IBM is designing its products and services from the customer perspective. This is to ensure that all what they offer for the market is best suited in serving the customer needs (IBM, pp. 1) Definition of terms Product and service design Product design can be described as the process of coming up with an idea about a product or a service and then work out on ways to bring into life the product or the service in question. Product design is accompanied with selling since it has to be determined what features it must have before presented to the customer. In simple terms, the product can be designed differently based on the idea and the market in which it’s going to serve. In the modern society, especially where globalization has come into place, the product designed can be supported with modern technology for it to be less costly during manufacturing and selling it to the market. in essence every product that exists in the market must in one way or the other passed through the design process starting with the furniture we use in the house the child’s play toy (Fischer, pp. 8). Globalisation Looking at globalization from a general perspective can be very difficult to define because it can be used to refer to a number of things. In general terms, globalization is the process through which different countries come together as one community either because of economic, social or political reasons. Globalization is characterized with coming together of people from different nations. In the case of doing business, globalization is said to mean the creation of one single market where any producer can sell his products and services and where any consumer can acquire the same from. In other word there is free flow of goods and services across borders (Fischer, pp. 3). Literature Review Globalization and design of products and services Under globalization as explained earlier different forces come into existence that affect the flow of goods and services at the marketplace. In this case different economies and companies operate in totally very different environments. Globalization in trade has come as a result of liberalization and many companies can now access new markets to expand their investments as long as they have the capacity to do so. However, it’s not just about globalizing but also understanding what the market environment is and where there is need that is to be satisfied. The global market will always be defined in terms of market segments or niche. This is a group that has almost similar demands based on their characteristics. They market segment can also be defined in terms of the geographical location, class or social values. Important to note is that each market segment has got its own specification of what it wants. The producer, trader, manufacturer or marketer, this is a very important tool (Fischer, pp. 11). This is because it informs a lot the design process of the product or services. For example there are those people who lovers of coffee and there are those who are fond of tea. This case is just one illustration of how the manufacturer is expected to design its manufacturing process in order to meet the demand of a particular segment. Therefore designing of a product or service in the era of globalization is aimed at meeting the needs of a given market. This is because even though globalization the world market has become one large market, there are still different segments in its which have got very different specifications on what they want. With this regard therefore, globalization and design of product and services intercept at a point. In simple terms this means that it’s the market that determines what the manufacturer should produce and present to the market. Benefits and disadvantages of globalization As things look in the global market, globalization has not promised any person a free ride but it only depends on how an individual will utilize it. If used under normal circumstances across the borders, globalization is expected to present both benefits and limitations to the producer. Benefits Globalization has opened up the world market for many companies to exploit the available opportunities. This is important in ensuring continuous growth of business in of the market share and size. From the customer perspective, globalization has greatly triggered competition. This has forced many producers to embark on fair trade practices which more especially take into account the plight of the customer. Further, on the same regard globalization has resulted into designing of high quality products and services as part of the producer’s strategy to meet the international standards and survive the competition. In addition, globalization has brought into the market many innovations based on new technologies that have helped in designing and producing quality products and services at very minimal cost (Fischer, pp. 17). Limitations Even though global has been very conspicuous in helping the consumer and the producer to buy or sell anywhere, it is becomingly notable that this has not been well received by young companies and those economies that are growing. This is because is very stiff and the companies are expected to produce high quality products and services at very minimal cost. This is not affordable to small businesses that are yet to grow. This is because they don’t have the capacity in terms of finances, technology and expertise to improve on the design and production process (Fischer, pp. 25). Discussion of the findings Based on the analysis of literature and the two case studies involving IBM and Sony Companies, it has been established that globalization has continued to move product design of products from one level to the other. Globalization is becoming more important in many companies as they seek to produce world class products and services. For instance the design of the new software by IBM is aimed at providing the market with the user-friendly software that meets the global standards and that can favorably compete with its global rivals. Further, the design of the new software by IBM is important in helping the customers of the company to effectively interact with their clients all over the world irrespective of the language being used by different clients. This is a very important approach to designing and developing customer tailored products that are important in helping them to get different solutions related with their corporate structures. The case of IBM, globalization has been very important in deploying different skills that are important in providing organizational support to its clients as it seeks to develop and sustain and long-term relationships. At Sony Corp. globalization has all come to change the company focus and put its full emphasis on ways to respond to the customer. The whole approach that the company has taken has enabled it to receive important feedback from the customer which has helped quite a lot in designing good products for the global market. at Sony, design is not design if its not informed by the customer opinions and ideas. For instance, the company has embarked on a long-term program through which it collects information from the customers through the Customer Information Centers and Quality Hot Line. The information collected is then synthesized before disseminated to the company planners and designers. The information is then used to timely and quality designs for different markets in real time. In general, what globalization implies to the world business is the enhancement of the internal processes and systems to boost quality provision of products and services to the market. Conclusion As a matter of fact, globalization has come a time when technology is well advanced and many businesses are eager to move into new markets. Globalisation has had very many impacts both positive and negative to the business. However, most important to note is that globalization is directly related to design of different products and services offered by different companies. At the global market level, competition is very stiff and it’s all about quality and cost of production. As much as many companies are trying to break-even at the global level, they are also looking for ways to meet the needs of the customer. With globalization, the market is quite open both for the producer and the consumer. This is to mean there are several and unique demands from various market segments. Understanding these varied and unique demands is the foundation of product and service design has seen in the case of IBM and Sony Companies. In general, globalization has been a major force in many global companies as it has changed the way CEOs perceived design of products and services. Recommendations After the extensive analysis of the concept of globalization and product and services design and other related theories, no doubt much has to be done both by local and international companies to work out on a plan that will ensure that they are strategically place to compete effectively. On the same line therefore, the following recommendations have been proposed to all stakeholders in the global market to improve and make the market favorable to all players both stronger and weaker ones: 1. First, at governmental level now it has become very clear that globalization is no longer inevitable, to act and put in place programs that ensure support for younger and glowing companies in order to enact products service designs that are up to standards and that can measure up with the global standards. 2. Second, there is need for those companies that do not have the capabilities to design and develop products and services that can give a competitive edge in the global market to take a step and partner with other players in order to mobilize their resources in terms of technology, finances and manpower to do so. 3. Third, there is need to put in place cost effective technology programs that can be used to promote innovation and development of new products for the markets. The implication for this is to invest on research and development in order to boost the design of appropriate products. 4. Finally, there is need to partner with the consumer so as to discover what they want before embarking on any design. This is important in ensuring that all products and services that are developed for a particular market are not irrelevant. Bibliography Fischer, Stanley. “Globalization and Its Challenges”. American Economic Review. 93.2, 2003: , pp. 1-30. Sony Global. Product Quality and Quality Management. 12 2011. May 18th 2012 http://www.sony.net/SonyInfo/csr_report/quality/management/index.html IBM. Globalisation of software services, 2010. 17th May 2012 http://www-01.ibm.com/software/globalization/services/ Read More