Globalization Management Assignment Example | Topics and Well Written Essays - 1000 words

Globalization Management - Assignment Example 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 contras t 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 d riving 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 Eur opean 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