Levitt (1983)

Management > Global Marketing Management > Lectures > Independent Research > Levitt > The world wants it > Global companies > Money, scarcity and scope > More on globaliation

More on globalisation

The failure of a global firm to sell a product without any change or adaptation is a matter of “execution”, “nerve”, and “imagination” failure. He gives the example of Hoover’s washing machine, but the final answer is aggressive low-pricing and a simple, standardised design

“It asked people what features they wanted in a washing machine, rather than what they wanted out of life.”

Levitt argues that a universal need exists with everyone in the world to search for things which will facilitate their life, and increase their spare time and spending power.

Globalization is breaking down nationalism and racism.

“Two vectors shape the world: technology and globalization. The first helps determine human preferences; the second, economic realities.”

Markets will always eventually converge, while economies of scale will make everything cheaper.