Based on the Reading by Susan Douglas and Yoram Wind (‘The myth of globalization’, 1986, in De Wit & Meyer, 2010, Reading 10.2), what compromise exists between the dichotomy of the forces for the globalization of markets, and the barriers to global competition?
A global promotional theme, or positioning, is developed, but execution is adapted to the local market
There is no compromise
Pattern aggregation
Increasing the benefits accrued from economies of scale, in order to drive out local competition.
Which of the following statements, according to Douglas and Wind (‘The myth of globalization’, 1986, in De Wit & Meyer, 2010, Reading 10.2), is TRUE?
Differences in competition, from one country to another, may impede global standardization
Customer needs and interests are becoming increasingly homogeneous
The standardization philosophy is primarily product-driven
Production costs are often the most critical component in determining the total cost of the product.
Regarding the assumption of the global standardization philosophy, how do Douglas and Wind (in ‘The myth of globalization’, 1986, in De Wit & Meyer, 2010, Reading 10.2) argue that people, around the world, are willing to sacrifice preferences in product features, for low prices at high quality?
Customers are, universally, willing to trade off specific product features for lower prices. Thus, a company should favor a strategy of global products
Price-sensitive customers are, typically, not source loyal. Therefore, they prefer standardized product at a low price
Aggressive low pricing, for quality products, expands the global markets facing the firm
Low price positioning is a highly vulnerable strategy, especially in international markets.
Regarding the assumption of the global standardization philosophy, how do Douglas and Wind (in ‘The myth of globalization’, 1986, in De Wit & Meyer, 2010, Reading 10.2) argue that substantial economies of scale can be achieved by supplying global markets?
In many cases consumer and service production costs are often a minor component of total costs. The key success, in these markets, is tailoring products, rather than production efficiency.
Standardized products, and global competition, constantly drive down prices and increase a firm’s efficiency
Developments in flexible factory automation enable bigger supplies of standardized products, and create possibilities for centralized manufacturing
Global standardization always goes hand in hand with economies of scale.
According to Douglas and Wind (in ‘The myth of globalization’, 1986, in De Wit & Meyer, 2010, Reading 10.2), under what conditions will the global standardization philosophy likely prove to be a ‘winning’ strategy?
When the channels of distribution and transportation are standardized as well
When there is existence of a global product
When there is existence of a global market segment
When strategy formulation follows a ‘planning’ path.