Sunday, April 28, 2019
Globalization Management Assignment Example | Topics and Well Written Essays - 1000 words
Globalization Management - Assignment ExampleThe strategies build would be product driven instead of being controlled by customer behavior and response patterns. The article, therefore, seeks to puzzle out if success in the international market must involve development of global products. The primaeval aspects discussed in the paper revolve around the competitive strategy created by global standardization of products. bit it sounds like a good idea, the global standardization may be faced by several(prenominal) constraints. In one example, the globalization is hampered by differences in preference, government constraints, transport costs, tariffs and barriers to entry as head 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 develop countries where the needs of the consumers appear uniform in contrast to the developing countries. It is unfortunate that the global standardization is found on assumptions. By assuming that the needs of the customers are homogenous, planners may indulge in deriving ill-treat conclusions. If needs of the world were homogenous, it would be possible to satisfy the world needs. All countries would thrive at the equal 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 synonymous and hence reduce customer choice. Already, researchers refute the theory on homogeneity on the grounds of variant lifestyles and value segments. In the United States alone, nine different value segments appear conspicuous. The assumption that customers are free 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 last(a) 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 otherwise aspects such(prenominal) 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 constitution 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 sticky to comprehend how the global perspective contrasts with the global standardization. The emphasis on standardization leads a reader to intend that the development of global brands is part of a global perspective. Briefing reading 2 strategy from the inwardly out building capability-creating organization The article outlines some significant disadvantages associated with following suit of what competitors are doing. This could bilk a company to losses since local
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