THE GLOBALIZATION OF MARKETSBY THEODORE LEVITT(HARVARD BUSINESS REVIEW)

TABLE OF CONTENTS Introduction Living in the republic of technology Vindication of the Model T The hedgehog versus the fox A failure in global imagination Cracking the code of Western Markets Conclusion

INTRODUCTION

Customizing products => Standardized products

Powerful force of Technology Commercial Reality Multinational Corporation => Global

Corporation

LIVING IN THE REPUBLIC OF TECHNOLOGY

Technology’s supreme law is Convergence

Combining low price with good quality

VINDICATION OF MODEL T

Customers prefer Standardized products for their low price

Victims: companies covering domestic/small markets

THE HEDGEHOG VERSUS THE FOX

Fox: multinational corporation Hedgehog: global corporation

Critic: Flexible factory automation => economies of scope

A FAILURE IN GLOBAL IMAGINATION

Companies that tried to standardize too much the exported products have failed

Example Hoover

CRACKING THE CODE OF WESTERN MARKETS

Code = a desire for dependable world standard modernity in all things at aggressively low prices

Example GE’s Japanese chairman

CONCLUSION

Standardizing to be competitive Adjustments are necessary Adjustments are unwillingly and only

performed when they’re immutable (inchangeable)

Example: Contac 600 (GSK)

Last quote: ‘The products and methods of the industrialized world play a single tune for the whole world and everyone eagerly dances to it’