MontGras Case of The Globalization of Markets

In addition, Levitt recommends providing the same line of goods to everyone inside global industry instead of trying to tailor production to person markets. Through globalization, firms can supply everybody "simultaneously high-quality, more-or-less standardized products at optimally low prices" tn gain greatly expanded markets and profits. By mass-producing standardized lines, businesses can remain additional productive and accomplish scale economies that customized lines cannot hope to attain. "Companies that do not adapt towards new global realities will grow to be the victims of individuals that do" (Levitt, 1983).

From the situation of Mont Gras, Levitt's process would mean that MontGras must develop a single standardized line with high-quality, low-priced wines and marketplace it towards the U.K., the U.S., and all of its customers worldwide. This would result in a much better return than customizing offerings for separate markets. Levitt's technique would alter the techniques of industry leaders too a virtual unknowns like MontGras. Starbucks is often a great example of the company that has overdiversified its line. It has created specific coffees just for particular customers, such as Nordstrom's and PriceCostco. Furthermore, it has departed from its original product, coffee, and ventured into new solutions ice cream and frappuccino. However, with all due respect to Levitt's philosophy, Starbucks has been quite successful with this method (Starbucks, 1997).

In the last analysis, Levitt has some good insights. Primarily, his recognition that it's smarter and additional profitable in general, at least to marketplace 1 line to everyone than to maintain specialized lines that cannot be marketed as efficiently or inexpensively. However, what he fails to recognize is that his strategy isn't one-size-fits-all. For some companies, specialized lines were extremely profitable. Organizations searching for to obtain wisdom from Levitt will find selection nuggets, but they are best to generate up their individual minds about when and where to develop specialized lines.

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