Globalization is refers to a process in which enhance the interaction among people, companies and government of different nationalities through integrating their economic, financial, trade and communicational capabilities. As a result, those distinct world economies are converged in to one huge integrated and interdependent world economy
With the emergence of globalization and as a result of diminishing trade and investment barriers, the domestic businesses got opportunities to spread their business throughout the world by entering to much larger international markets, in the form of international, multinational, transnational and as global corporations. And that’s where the ...view middle of the document...
Ex- just-in –time production system used by the most manufacturing organizations today, where it’s founded by the Toyota.
Standardization vs. adaptation
Standardization is the primary motive of the globalization where the convergence of consumer taste and markets are emphasised in context of cross border which result in international organizations to gain advantages in economies of scale by introducing and mass producing standardized products, pricing, distribution and communication throughout the world. Ex- Mercedes-Benz, Rolex watches; where they use standardized products and marketing mix strategies through all over the world to response the homogeneous human need of luxuriousness or the classiness.
Opposing the concept standardization there is the concept adaptation. this concept can be considered argument against globalization where the differences in cultures, perceptions and structures in different countries are taken in to the consideration and address the world more sophisticatedly. Here the marketers use differentiated marketing mix strategies to different marketing segments and make it more familiar to the host nature. This approach can be identified as a localization approach where it create, capture, deliver and communicate customer value by adjusting in to the cultural differences, language, national differences to consideration. Ex- McDonald’s where they use adaptation strategies to products, price and promotion according to the differences in various countries.
The main issue in the globalization is realize with the interdependency of the economies, where the...