Globalization of Markets

Write a paper that discusses the globalization of markets: theodore levitt. Theodore Levitt was a professor and editor of Harvard Business School who introduced the importance of adopting corporate purpose so that organizations also drive for value addition to customers, rather than doing business on the basis of merely money-making motivation (Harvard Business Review, 1984). In this paper, the theory of Levitt on the globalization of markets will be critically discussed for understanding how the adoption of globalization would change the perspective of companies on markets and consumers. For the purpose of analysis, several strategic management techniques and their application by organization in the global framework will also be discussed.Levitt, in his theory, had explained that the driving forces of globalization would result in a converging commonality that would enable zed communication and networking for isolated people and places to gain access to the modern amenities and technicalities. The success behind globalization lied in the effort of global market players to standardize consumer products so that the products can be accessible and acceptable to all the consumers from every corner of the world. Such action taken by corporate would benefit the company as well, as they would be experiencing economies of scale in the production, distribution, and management process. As the benefit would arise out of the consumers’ reach and acceptance, the corporate should translate such benefits by reducing the world price. In this way, they would also be able to discriminate their business operations and project their brand image as distinct and superior to the world (Harvard Business Review, 1984). The main areas of concerns taken into account by Levitt in this regard are as follows.Though used interchangeably, differences are there between global and multinational companies. In this present era of modernization, the whole world is seen as a global market and the multinational companies are identified as those who are having operations and&nbsp.manufacturing units in multiple countries. Though the strategies are the same, the application of which would become more beneficial was a subject of matter for Levitt. He also opined that modernity is not an aspiration only. it requires a widespread and uniform practice among individuals and groups. However, when such an exercise of globalization makes people thirsty for blood, the process needs to be rectified.

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