Essay About Domestic Markets And Global Markets

Globalization
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Globalisation          Nowadays, people could purchase overseas’ products much easier than before. There are many international companies not only successful in the domestic markets, but they also have good performance in the global markets. According to Levitt (1983), because of some important elements change, which is technological change, social change, political change and economic change driven the world toward a ‘global village’ or ‘converging commonality’. Because consumer tastes and preferences are becoming the same, the global market has been standardized. Levitt (1983) also pointed that it could help global organizations to achieve ‘word economies of scale.’ However, there are still very significant differences exist in the national markets. International companies need to consider how to satisfied some specific demand of each national market. The argument is that global organizations want to succeed in the global markets not only need a standardized strategy, but also need a customized strategy.

By turning back to the early history of international business, which can be a good method to analyze some of the important factors that lead to globalization. According to Levitt(1983), the development of technology is a powerful force which drives the world toward a ‘converging commonality’. There are there main kinds of technologies which should be focused on. As Stonehouse et al (2004) pointed out, Firstly, the ‘manufacturing technology’ which could enable factories to be able to produce products as much as they can during the industrial revolution. Secondly, the ‘transportation technology’ which allowed movement of people and products from country to country much faster and cheaper. Thirdly, the ‘information and communications technology’ such as telephone and the internet which  allowed people get information and co-ordination of international business better and quicker.         Globalization has driven the world become a different place. As the definition of the globalization of markets given by Stonehouse et al (2004) that globalization of markets has increased ‘homogenization of consumer tastes and product preferences in certain markets’(Stonehouse et al,2004 ), for instance, some luxury brands like LouisVuitton, Chanel, Gucci and so on. Customers who in the west or in the east all fond of  these brands which provided standardized products all over the world. However,  nowadays, there are some facts influenced the global market such as culture, economic environment and government policy. The argument is some industries could be standardized, however, some industries such as food, banking consulting and electronic industries could not be standardized. According to Dunn (2015), it is important for the markets nowadays to realize that they have to design their products as well as market strategy in order to promote their companies having a good selling in the foreign markets and their home countries.