In this article review, the myth of globalization described that the concept of globalization and standardization and adaption of products and services in the international market. He described externally as well internal barriers which hamper the standardization of products and services, requisite conditions and underlying assumptions for standardization and global strategy.
The first assumption is the homogeneity of consumers’ needs worldwide, which may not hold true everywhere as consumers needs vary from region to region. The second underlying assumption of consumers’ willingness to sacrifice preferences in product design, tastes and functions for low prices but not on the quality was explained. Then the author laid down the third assumption of economies of scale of production for achieving standardization of global products and services. He narrated that the new technological developments have changed this concept of achieving economies of scale by producing a large number of products. Further, he explained that the cost of production has become has a very little impact due to technological development and economies of scale rather other factors such as distribution channels, packaging, marketing, and PR play greatly affect the cost of the product.
The author also described a certain number of requisite conditions for companies to have a winning strategy in the international market. First, he described the condition of existence of global market segments such as industrial and consumer markets so that company could have global brand image across the targeted segment. Secondly, he mentioned synergies associated with the globalization which meant that the opportunities may exist to transfer the goods and ideas for product and promotional method from one country to other. Thirdly, he discussed that for implementing the strategy of globalization, the international communication and distribution channels should be available in all such countries. Marketing and another distribution medium must be readily available and accessible to make globalization strategies successful.
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Finally, in the article, the author discussed the external and internal constraints to the effective standardization and regarded the governments’ restrictions, differences in the competition, availability, and costs of resources and effectiveness of the marketing media as external constraints. He then described internal constraints such as existing international operations and local managements’ motivational levels and attitude towards standardization. He concluded the topic by offering a framework for classifying the global strategic options that are international companies should adopt a hybrid global strategy to reap the benefits of standardization and synergies from operating at an international level.
The article discussed the International Marketing and global strategy part of strategic management.
In my view, a criticism from my side would be the writer should also mention the advantages of globalization and standardization of products. Moreover, the author did not provide empirical evidence to support the adaption of products and services. He could not provide the impact of effective globalization strategies over sustainable competitive advantage of the international firm.
Most interesting part I have found in this article is the underlying assumptions of globalization because the author presented the valid and accurate counter-arguments to negate these assumptions.
I have found internal constraints to effective standardization and framework to classify the strategic options most difficult. In fact, the article could not shed light in details over hybrid strategies and how organizational structure hampers its effort to standardization.