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Levitt (1983)Management > Global Marketing Management > Lectures > Independent Research > Levitt > The world wants it > Global companies
Global companiesGlobal companies compete to gain the best combination of quality, low cost, reliability, and delivery. High quality and low cost are the two aims of every global company. This can be achieved by lowering the cost of operations. The pressure to standardize pushes up quality. A global firm will succeed if it retains “reasonable concern for its
suitability”. Levitt admits that companies do customise products to certain market segments, but that success stems from finding other similar markets around the world (He states that any product can be sold to anyone in exactly the same way as it is at home, but he also he advises companies to look for similar markets elsewhere, implying that there are different market segments). He fervently argues that the clever global firm will be aware that the customer is not “a king who knows his own wishes”. Cheaper transportation costs are a threat to domestic firms, as it allows global competitors to enter. To make one’s money go as far as possible is, according to Levitt, is a basic universal need, not just a motivation.
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