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Globalization of Markets

Essay by   •  November 4, 2012  •  Essay  •  836 Words (4 Pages)  •  1,643 Views

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The globalization of markets is moving forward rapidly; companies need to be aware that the mode of producing different products for different nations or regions is obsolete under the fierce competition worldwide. They must learn to operate as if the world were one globalized market. In this article, the main idea is to switch from customizing products to offering globally standardized products that are advanced, functional, reliable and low priced.

What impressed me is the difference between multinational companies and global companies. Multinational companies focus on a number of countries, and manufacture different products to adapt the different tastes at high relative costs. By contrast, global companies run with resolute constancy, treating the world as an entire entity, they sell the same products in every targeted market at low relative costs.

Convergence is a key word in nowadays-worldwide business. To adjust a company's products to meet the different taste is no longer profitable. Everything is becoming more like everywhere else. Corporations must be efficient on production, distribution, marketing and management if they want to succeed. The other most important thing is lower the price with a high quality and reliability. Corporations sell the same tangible or intangible goods or service the same way in every nation in the world. They need to compete with the best combination of price, quality, reliability and delivery, which are globally standardized considering the design, functions and fashion of the products.

Technology is a powerful force that pushes the world into a converging commonality, but it also spreads worldwide. Every company in the global market has equivalents even small segments in the global competition. Companies should keep up the work of standardizing their offerings globally. Especially for those small companies only dominate small domestic market, they need a strategy of globalization, and be attentive to the economics of simplicity and standardization to avoid the trouble of breaking down. Once corporations going globally, they not only operate their business in distant market, but also attract customers who previously held in local tastes and now surrender to the lower prices.

Global corporations know everything about this entire entity---global market. They stay competitive by seeking constantly to lower the prices through standardizing what they sell and how they run. Meanwhile, they treat the world as consists of a few standardized markets. And their goals are moving toward global convergence. Everything is under their control, modernity and their mode, price competition. They know people from all over the world have one thing in common: scarcity. People want the products and features that come from overseas, as long as the price is reasonable. Customers will purchase these highly standardized and relatively cheap world products even if these are

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