International Business 2604 Case Study 2604

Introduction 1 Global Marketing, Business Analytics, and R&D Can reduce costs of value creation and add value by better serving customer needs in the global marketplace. • Includes distribution strategy. Mass production of a standardized product can generate unit cost reductions, but ignoring country differences in consumer tastes can lead to failure.

Globalization of Markets and Brands Globalization of World Markets Theodore Levitt: world markets are becoming increasingly similar, making it unnecessary to localize the marketing mix. May be true for bulk industrial products, but not necessarily for consumer products. • Consumers may prefer local options if they exist. Trade barriers and differences in product and technical standards also limit the ability of firms to sell a standardized product to a global market.