In the context of globalization, ‘Levitt Thesis’ means
Standardisation strategy to respond to the worldwide homogenised market and expand the market through aggressive low pricing
Theodore Levitt, in his Harvard Business Review article The Globalization of Markets (1983), argued that technology and communication had created a homogenised world market in which consumers everywhere want the same reliable, modern products.
He held that firms should therefore sell standardised products worldwide, gain economies of scale, and use the resulting low cost to compete through aggressive low pricing, rather than tailoring products country by country. This is the Levitt thesis.
Customising products to regional or national markets is the opposite, multidomestic or adaptation approach that Levitt criticised, so those descriptions do not state his thesis.
Hence, Standardisation strategy to respond to the worldwide homogenised market and expand the market through aggressive low pricing.
Similar Questions
Globalization is the term used to describe process of removal of restriction on which one of the following ?
Indicate the right sequence of the stages of internationalization :
(i) Multinational Company
(ii) Global Company
(iii) Transnational Company
(iv) International Company
Codes :
Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows took place to USA.
Select the correct code :
Codes :
Which of the following is not ensured to the consumer in the globalization ?
Assertion (A) : International business has grown in more recent years at a faster pace than global production.
Reason (R) : Growth through trade has increased, but growth through foreign direct investment has not.
Codes :
Important Questions from Globalization and its drivers
Match List I with List II.
List I (A.T. Kearney Globalization Index)
List II (Variables)
A.
Economic Integration I.
International Tourism and Travel B.
Personal Integration II.
Internet users
C.
Technological Integration
III.
Foreign Direct Investment
D.
Political Integration
IV.
Ratification and multilateral treaties
Choose the correct answer from the options given below:Globalization is the term used to describe process of removal of restriction on which one of the following ?
Indicate the right sequence of the stages of internationalization :
(i) Multinational Company
(ii) Global Company
(iii) Transnational Company
(iv) International Company
Codes :
Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows took place to USA.
Select the correct code :
Codes :
Which of the following is not ensured to the consumer in the globalization ?
