Think Globl ct Locl Discuss th implictions of Thodor Lvitts sttmnt - Essay Example

Onc compny introducs its products or srvics on th scond country-mrkt, it will unvoidbly b pron to impos its prvious xprinc, spcilly if th compny oprtion in th grt numbr of ntionl mrkts. Mrkting strtgy dcisions in such cs cn b bsd ginst th xtr-mrkt critri. For instnc, pric lvls r st up in ordr to limint th diffrnc mong mrkts nd to sustin pric corridor, comprd to th sitution whr you just purly rflct locl mrkt conditions. Subsidizing of pric lvls by multintionl is lso common prctic nd is usd for strtgic rsons.

Strtgy of th compny tht is xpnding brod dpnds on mny fctors, in som cs it is just pursu of lrning nd somtims it is high profitbility trgt tht r st up upfront. nothr componnt of th mrkting mix tht is diffrnt nd should b tilord to th spcific mrkt is distribution chnnl infrstructur, which should b lso rsponsibl for mrkting strtgy. Th distribution ntwork hs lso to contribut lot to strtgy for growth, nd s rsult it is judgd on orgniztionl critri such s fsibility, lvl of risk, supportbility, nd control issus.

Mnwhil, distribution mngmnt in domstic mrkts is mostly proccupid by th rliztion of lrdy xisting mrkting strtgis nd is minly judgd ginst fficincy or cost-minimiztion critri. Thodor Lv Thodor Lvitt's is fmous for nlyzing nd rconciling dilmms tht compny will ncountr onc gon intrntionl. On of his controvrsil rticl Mrkting Myopi stts tht succssful businss should not only know whn to ntr, but lso whn to xit th mrkts is sttd in on's of Lvitts' Mrkting Myopi rticl: "Th rilrods did not stop growing bcus th nd for pssngr nd fright trnsporttion dclind. Tht grw. Th rilrods r in troubl tody not bcus th nd ws filld by othrs (crs, trucks, irplns, vn tlphons), but bcus it ws not filld by th rilrods thmslvs.

Thy lt othrs tk customrs wy from thm bcus thy ssumd thmslvs to b in th rilrod businss rthr thn in th trnsporttion businss. Th rson thy dfind thir industry wrong ws bcus thy wr rilrod orintd instd of trnsporttion-orintd; thy wr product-orintdinstd of customr-orintd."Probbly thr r two ltrntivs tht compny cn dopt whil thinking globlly, "Think globl, ct locl" nd "Think locl, ct globl", th scond ltrntiv sms to b th pur rsult of th globliztion. Thodor Lvitt wrot in his rticl (1983, citd in Hrbig 1998) tht culturl prfrncs will blong to th pst nd th world will bcom mor nd mor th sm.

Th nds nd wnts will bcom th sm vrywhr in th world. Lvitt implicitly sttd tht globl cmpigns will ttin long-stnding succss only whn thy will mt th nds of ch nd vry. H suggstd tk into considrtion th similritis nd do not focus too much on th diffrncs of culturs. To confirm his sttmnt Lvitt uss th xmpls of Coc-Col, McDonlds, Ppsi-Col nd Mrlboro. But in fct, thos compnis do not us Lvitts' id of th globl cultur strtgy. Or cours, Lvitt's work undrstimts th diffrnc btwn globliztion nd intrntionliztion, btwn multintionl nd globl corportion.

Th dominnc of trditionl plyrs is rflctd through th intrntionliztion, nd th multintionl is focusd on th production of good for locl mrkts. In my opinion, globliztion involvs nw typ of rltionship mong ll compnis nd countris. Th diffrnc btwn rgionl, intrntionl, nd globl mrkts is significnt points tht should b tkn into ccount by