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The Globalization of Markets

Theodore Levitt

Many companies have become disillusioned with sales in the international marketplace as old markets become saturated and new ones must be found. How can they customize products for the demands of new markets? Which items will consumers want? With wily international competitors breathing down their necks, many organizations think that the game just isn’t worth […]

A powerful force drives the world toward a converging commonality, and that force is technology. It has proletarianized communication, transport, and travel. It has made isolated places and impoverished peoples eager for modernity’s allurements. Almost everyone everywhere wants all the things they have heard about, seen, or experienced via the new technologies.

TL Theodore Levitt was a professor emeritus of marketing at Harvard Business School and former editor of Harvard Business Review.

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Hailing A New Era: Haier In Japan Case Studies Example

How far has Haier come since its creation in 1984?

Haier has since 1984 expanded into the global market making sure to create global products. It first expanded internationally, and later went into the global market. Its expansion coupled with its effective leadership has seen it become one of the leading manufacturing companies in the world.

What is special about Haier's current management system?

Haier's management system is a combination of Western management concepts and Chinese philosophies regarding management. This combination provides a balance between the two cultures. Moreover, the management system has adopted a ZZJYT concept which contradicts the traditional management theories. In this system, the customers are given priority and their needs put into consideration.

What role has CEO Zhang played in Haier's development? How would you describe him as a leader?

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Essays on Global Marketing

Global Market Essays

Multinational enterprise (mne) has competitive disadvantages outside its home market, global business aspects, fair-trade chocolate, exploratory study of the role played by digital marketing in the global market, structure and culture of companies in the global market, rio tinto company, popular essay topics.

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Global Market Segmentation

In their article, the authors compare the general performance of conventional and religious (Islamic) stock returns in Saudi Arabia. They aim to determine the impact of religious preferences and their ability to create investor recognition effects and segmented financial markets (Alhomaidi, et al., 2019). The examination of all Saudi firms’ stock returns over the past several years illustrated the fact that recognized Islamic stocks have a substantively broader investor base and lower idiosyncratic risk (Alhomaidi, et al., 2019). In addition, the differentiation between less-recognized conventional and Islamic stocks in predominantly religious markets affects the incorporation of information into asset prices. Moreover, Islamic stocks exhibit higher systematic turnover and considerable integration with both global and local factors (Alhomaidi, et al., 2019). In general, this research provides evidence of the religious norms’ impact on corporate decisions.

In general, market segmentation may be regarded as a specific process of the global market’s division into smaller segments based on customers’ shared characteristics. It is an effective tool that helps to develop different marketing strategies and address the target group more appropriately. Religion is an important factor in market segmentation. At the same time, the efficacy of religious market segmentation strongly depends on external factors, such as the cultural and social norms of the targeted society. On the one hand, the understanding of the country’s customs, traditions, and religion facilitates its market entry for foreign companies. On the other hand, these companies that perform by the country’s religious norms have more opportunities to become successful in local settings compared with a conventional corporation. In addition, corporate leaders frequently make investment and financial decisions based on their shareholders’ religious beliefs that have a direct influence on the company’s profitability.

Alhomaidi, A., Hassan, M. K., Hippler, W. J., & Mamun, A. (2019). The impact of religious certification on market segmentation and investor recognition. Journal of Corporate Finance, 55 , 28-48. Web.

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Essay about Global Cities

The term “global city” was first used by Saskia Sassen, a well-known world specialist in urban strategies. It is also referred to as “world city” or world-class city”. This is a term which she describes or categorizes a city/ies which has a great deal of effect and influence on global affairs. Such cities create a “hub” for economic, political and cultural changes all across the globe.

The concept of a global city should be taken as a component of a global network of strategic sites. No global city exist as a single entity but serves as a function of cross-border networks, having “production functions” in their economic, political, cultural and even lifestyle areas being interlinked with other global cities.

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There are various criteria that categorize a city as a global city. Two main criteria are economic production function, which has to do with the city having the resources and capabilities necessary in managing its global operations of firms and markets, both local and foreign/multi-nationals. Global cities are able to ensure the existence, reproduction and renovation of these resources and capabilities through various forms of leadership and international economic diplomacy.

The political production function on the other hand pertains to producing or strengthening the professional elites, and creates a conducive environment for these national, and or foreign corporate professionals. Such a conducive environment is achieved by global cities since these are partly denationalized, furthering its ability to attract large foreign businesses and related expatriate communities.

In addition to these two main criteria, “culture production function” is also an important global ingredient. It must have a world-class culture, with world-renowned cultural institutions such as museums and universities, including its Lifestyle issues. It has a lively cultural scene, hosting film festivals, premieres, a thriving music or theatre scene such as that in Broadway. There is also an increasing presence of the servicing class which caters for the lifestyle of the new professionals and managerial elites. Such as nannies, housekeepers, etc. which serves as an indicator of a global city. It is also marked by physical expansions for its urban glamour zone (See “What you need to be a Global City”).

Other key important characteristics which global cities share include international, first-name familiarity. Such cities have gained world-wide popularity that the mere mention of its name is accepted and equated to its country, such as when one mentions Paris; it is automatically understood to mean Paris, France. Tokyo is readily assumed to mean Tokyo, Japan without mentioning the country or political subdivisions. It must also have a great influence and participation in world affairs.

A global city is the center of a metropolitan area possessing a fairly large population of at least one million people. As a major economic center, it should have an advanced transportation system which includes and international airport, that serves as a host for several international airlines; several freeways and large mass transit network. Global cities are also characterized by advanced communications infrastructure such as fiber optics, Wi-Fi networks, cellular phone services, and other high-speed lines of communications with which national and foreign firms can rely on.

Traditionally, the cities of London, New York city, Paris, and Tokyo known as the “big four” world cities have become the symbols of global capitalism. The goal of building a “world-class” city has become an obsession to some and has gained success in emerging new world-city such as Buenos Aires, Frankfurt, Sydney, and Toronto all of which have become large and influential.

The Globalization and World Cities Study Group and Network (GaWC), in its attempt to categorize world cities ranked cities based on provision of “advanced producer services” in areas of accountancy, finance and law, advertising which are owned by foreign or international firms. GaWC came up with categorization of these world cities in three levels and several sub-ranks. Those that were given much consideration were cities having multi-national companies that provided financial and consulting services rather than being a cultural or political centre. These three major categories are the alpha (full service); beta (major); and gamma (minor) world cities.

The “big four” world-cities received the highest rank, followed by Chicago, Frankfurt, Hong Kong, Milan, Los Angeles, Singapore. Receiving the highest rank among Beta world cities are San Francisco, Sydney, Toronto, and Zurich. Second ranks on this category are Brussels, Madrid, Mexico City, Sao Paulo. These are followed by Moscow and Seoul. Gamma world cities with first ranking are Amsterdam, Boston, Caracas, Dallas, and Geneva among others. Next in rank within this category include Bangkok, Beijing, Montreal, Rome, Stockholm and Warsaw. Last in ranking among minor world cities are Atlanta, Barcelona, Berlin, Budapest, Buenos Aires, Copenhagen, Hamburg, Manila, Miami, Shanghai, Munich, Kuala Lumpur, and Istanbul (See “Global City” from Wikipedia).

The inventory done by GaWc in 1999 undoubtedly considered Amsterdam a global city, despite ranking it in the third category. Based on the above mentioned characteristics, Amsterdam fits the category. It is the seat of one of the world’s chief stock exchanges, at the same time boasting of having a major port.

Amsterdam is also world-renown for its diamond-cutting industry, and one of the great commercial, intellectual, and artistic capitals of Europe. What makes it unique is the North Sea Canal which opened in 1876 which accommodates large oceangoing vessels, connected by the older North Holland Canal. In fact, the city is cut by about 40 concentric and radial canals containing streets and crossed by 400 bridges. These canals gave the city its nickname, “Venice of the North”.

The Amsterdam-Rhine Canal connects the city with the Rhine delta, and consequently with the industrial North West Germany. There is considerable transit trade within these canals. Its manufacturing firms include clothing, printed materials and metal goods. This city is a major road and rail hub, with Schiphol airport serving as an established hub for several international airlines. The Amsterdam Area is strategically positioned with a network of air, road, water, rail and cable connections to the rest of Europe. Its international airport and major seaport makes the city a multi-model hub, providing easy global accessibility because of its unique position as a gateway to all major European markets.

Tourism is an important industry since the city offers a unique experience with many old and picturesque houses along the canals which are now mostly used as offices and warehouses. Amsterdam is built on wooden and concrete piles because of its underlying soft ground. It is an ethnically diverse city with new residents from former Dutch colonies such as Indonesia and Suriname.

Amsterdam is home to art works done by world-famous Dutch masters such as Rembrandt, found in Rijksmuseum or National Museum built in 1808 by Bonaparte. Of equally famous are the Van Gogh museum, the house of Anne Frank, and Rembrandt’s house. The Concertgebouw Orchestra provides a lively cultural scene. Cultural institutions include the University of Amsterdam founded as an academy way back in 1632 and achieved university status by 1876, and has been serving as the largest learning center in Netherlands. The Free University (Calvinist) is also found in this city (See “Amsterdam”).

Likewise, the Economic Intelligence Unit’s Global Outlook Country Forecast Ranking of 2005 has named Netherlands as the best country to do business in the euro zone. Every five years, the Economist Intelligence Unit (EIU) draws a list of ten best countries with which to do business and Netherlands is in sixth place, the highest among other countries in the euro zone. Amsterdam as Netherland’s capital is a thriving hub for business and industry. It has continued its traditional openness to the world and thus creating an excellent business environment able to offer a competitive cost to quality ratio, and an elite international network of professional services designed to assist international businesses. It also offers highly educated, flexible and motivated workforce with a high degree of English proficiency compared to other European countries.

International network of service providers in the city allows great outsourcing opportunities. Amsterdam is one of the most ‘wired’ regions in Europe, where the largest Internet exchange on the continent, the Amsterdam Internet Exchange (AMS-IX) is located. The area has attracted many international ICT and telecoms companies because of its excellent IT infrastructure. Amsterdam also boasts of a strong creative industry such as advertising, design and publishing.

Guy Hayward has noted Amsterdam’s rise as a key player in the global advertising market. One such example is 180, an Amsterdam-based agency which is snatching multinational clients from traditional groups in London or New York. It has housed diverse nationalities, represented by twenty nationalities in its roughly estimated ninety employees. Such a scenario is not unusual in Amsterdam where other firms are attracting marketers’ attention such as Wiede+Kennedy, and Strawberry Frog ( E. Pfanner, “A World of Expertise at Home in Amsterdam)

It is a centre for life sciences activities in Europe, with a well established infrastructure, informatics and biomedical research. It has a high standard of expertise in areas including integrative bio-informatics and genomics for the treatment of infectious inflammatory and multi-factoral diseases, oncology, immunology, cardiology, cell and medical biology, including neurosciences. It contains the highest concentration of knowledge within the country.

The Amsterdam Area is one the world’s favorite places to live and work, offering a high quality of life for its constituents. Even foreign visitors and expatriates feel quickly at home. The city has been a ‘melting pot’ for many centuries. The city of Amsterdam has truly gained world-wide popularity with other nationals because of its lively, international, and cosmopolitan atmosphere.

Allowing dual citizenship has made the city home to a number of foreign nationals. The second largest Japanese community in Europe can be found in Amstelveen. A variety of international schools, associations and social centers in Amsterdam Area caters to its large community of expatriates (See “Doing Business in Amsterdam”).

As part of the new city marketing campaign, I amsterdam is the new motto for Amsterdam Area to assert itself continually on the international stage. Showcasing the city’s strengths for centuries are its enterprising, innovative and creative qualities, making its mark on the global level (See “Amsterdam City Marketing”).

“What you need to be a Global City”. http://www.gurusonline.tv/uk/conteudos/sassen2.asp
“Global City” From Wikipedia, the free encyclopedia. http://en.wikipedia.org/wiki/Global_city
“Amsterdam”. http://www.infoplease.com/ce6/world/A0803825.html
Pfanner, E. “A World of Expertise at Home in Amsterdam”. http://www.iht.com/articles/2005/09/18/business/ad19.php
“Doing Business in Amsterdam”. http://www.ez.amsterdam.nl/page.php?page=183&menu=99&PHPSESSID=862a6b961a870c6944b16dc2b1be13a5
“Amsterdam City Marketing”. http://www.amsterdamtourist.nl/encorporate/home/Amsterdam+City+Marketing/xp/content_artikel.ENamsterdamcitymarketing2/default.aspx

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Global Market and Complexities in Business Case Study

Major problems/issues, potential solutions, decision criteria for addressing the problems, recommendations, works cited.

Global market refers to the activity of conducting business across the world. In other words, this refers to international business activities in a worldwide scale. Global marketing plays a significant role in modern-day business environment. One of the major advantages of this form of trade is that it increases free trade among countries, thus helping to promote good international relationships among nations. This form of trade also plays a key role in the economic development of emerging nations.

More importantly, this type of trade involves many countries as participants, and that way, it makes it possible for people to have access of the widest possible range of commodities. While global market activities present many opportunities, there are also many complexities facing the trade. This paper examines some of the major problems surrounding global market together with the potential solutions that can be taken against them.

As it would be observed, the activities of international marketing are affected by diverse complexities. These complexities or issues are some of the factors that influence the failure of global trade activities, and are therefore among the many things that companies ought to consider before venturing into global marketing (Fawcett, Roger and Anthony 476). Following is a summary of some of the major complexities associated with global trade.

Linguistic problems

Language is among the most significant factors when it comes to marketing of commodities. Business operations cannot be carried out successfully if the parties involved don’t understand each other. International trade involves people of different national identities, and this poses serious language and communication problems among the people involved.

Legal Constraints

Obviously, nations have different laws to deal with various business affairs that are unique to every country. These laws would tend to have a significant impact on activities of international trade such as marketing and advertising, among other aspects. However, some of the biggest challenges in this context are observed when it comes to advertising, whereby countries tend to have different laws governing commodity advertisement.

For example, some countries may not permit advertisement of some products while others have put strict conditions on advertisements, particularly ones that are being done by foreign companies or nationals. Access to media is also limited to foreigners in some countries and this also serves as a serious complexity in global marketing (Eid and Myfanwy 25).

Cultural issues

There is no doubt that culture values are among the most sensitive areas that should be taken seriously by any investor who is planning to venture the global market (Craig and Susan 55). The main reason for this is because people across the world are defined by different cultural values and beliefs.

In this regard, business ideas presented by a particular company or nation through marketing advertisements could be offensive to people in other countries. This could raise serious accusations against the organisation involved, thus leading to market decline of their products and services in the affected region.

Market differences

As it would be observed, there are many differences across national and cultural boundaries that would tend to affect key elements of the marketing mix. Some of these elements would include things such as channels of distribution, price, advertising, and product promotion. These differences apply in every product category, thus causing serious complexities in the global market.

Management myopia

Management is a key aspect of business success. A company that aims to take part in international trade should not let anything compromise their ability to offer the best to their customers (Zahra 20). Management myopia is a term that can be used to refer to any business organisation which fails to maintain its leadership in establishing customer value in a foreign land.

There are various potential solutions for the above problems or complexities in global marketing and some of these have been summarised below.

Language problems can have serious implications on a business. In this regard, nations and companies should ensure that the words they use in advertising their products in foreign markets are translated properly to give the intended message. More importantly, it would be a good idea for companies operating in foreign markets to employ local professionals who can be helpful in addressing language problems in those regions.

In order to address legal constraints better, nations and companies should try to seek the advice of a competent legal expert before venturing some countries. This will help them understand the legislative conditions of their potential trade partners in regard with important marketing practices. It will also be a good idea for companies and nations to conduct a good research on potential business partners to identify anything that might affect their business operations (Govindarajan and Anil 68).

The best way for companies to address cultural problems in global marketing is by being cultural sensitive. This can be achieved by studying the cultural aspects of potential trade partners to learn how they can affect marketing and advertisement of commodities.

Market differences in global marketing can be resolved through the involvement of strong local teams who are capable to adapt the commodities to local demands.

Companies taking part in global marketing should focus more on customer value as one way of remaining strong and successful in the competitive environment of the international market.

The first action for companies to take in order to effectively address the problems would be to identify the complexities involved using competitive activities and moves. These activities would include, but are not limited to, conducting regular survey on how products are doing in different regions and carrying out background research using different research methodologies to identify consumer interests (Agarwal and Sridhar 22).

Through these approaches, it will be easy for companies and countries to find influential factors that are likely to play a significant role when it comes to global marketing. Depending on the acquired information, business organisations and countries taking part in international marketing can apply the necessary approaches to attract customers in global market.

The suggestion for dealing with global market complexities is that a study on important influential factors should be conducted on targeted countries before venturing into a global market. In order to thrive in international marketing, countries or companies should have a clear insight of all the factors that need to be put into consideration before starting the business.

Global marketing is surrounded by many complexities that would make it hard for participating countries and companies to succeed. In this regard, countries and companies planning to take part in international marketing should understand all the political and cultural demands of the nations they intend to do business with and abide with them.

Agarwal, Sanjeev, and Sridhar Ramaswami. “Choice of foreign market entry mode: Impact of ownership, location and internalization factors.” Journal of International business studies (1992): 1-27. Print.

Craig, Samuel, and Susan Douglas. International marketing research . John Wiley & Sons, 2005. Print.

Eid, Riyad, and Myfanwy Trueman. “Factors affecting the success of business-to-business international internet marketing (B-to-B IIM): an empirical study of UK companies.” Industrial Management & Data Systems 104.1 (2004): 16-30. Print.

Fawcett, Stanley, Roger Calantone, and Anthony Roath. “Meeting quality and cost imperatives in a global market.” International Journal of Physical Distribution & Logistics Management 30.6 (2000): 472-499. Print.

Govindarajan, Vijay, and Anil Gupta. “Leadership Building and Effective Global Business Team.” MIT Sloan Management Review 42.4 (2001): 63-71. Print.

Zahra, Shaker. “A theory of international new ventures: a decade of research.” Journal of International Business Studies 36.1 (2005): 20-28. Print.

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