Learn more about economics with this collection
Identifying the skills needed for the future
Developing a growth mindset
Creating a culture of continuous learning
The author asserts that well-managed companies have moved from the emphasis on customising items to offering globally standardised products that are reliable and low priced.
Global companies will achieve long-term success by concentrating on what everyone wants rather than worrying about the details of what people think they might like.
8
73 reads
Technology is a powerful force that drives the world toward a converging commonality. The result is the emergence of global markets for standard consumer products.
Corporations geared toward this new reality benefit from enormous economies of scale in production, distribution, marketing, and management. By translating these benefits into reduced world prices, they can wipe out competitors.
8
40 reads
The strategy of the multinational corporation and the global corporation differs:
The world's needs and desires have been irrevocably homogenised, making the multinational corporation obsolete.
8
46 reads
Our age is characterised as driven by "the Republic of Technology whose supreme law is convergence, the tendency for everything to become like everything else", writes Daniel J. Boorstin in his trilogy The American.
This trend has pushed markets toward global commonality where standardised products are sold in the same way - steel, chemical, transport, pharmaceuticals, etc. Even MacDonald's, Coca-Cola, rock music, Hollywood movies, Revlon cosmetics. Nothing is exempt. The high-tech and the high-touch ends of the commercial spectrum gradually wipe out the undistributed cosmopolitan middle. Â
9
34 reads
Customers will prefer the world standardised products if a company forces costs and prices down while pushing quality and reliability up. For example Henry Ford (Model T), South Korea (televisions sets), Malaysia (microcomputers), Singapore (optical equipment), etc.
Large companies in a single nation or city don't standardise everything they make. They have product lines and multiple distribution channels. Although companies customise products for a particular market segment, they know they will succeed in a homogenised world because a market segment in one country is seldom unique.
8
20 reads
In a rapidly evolving world, the most endangered companies tend to be those that dominate small domestic markets with high value-added products where there are smaller markets. Distant competitors can enter the sheltered markets of those companies by offering cheaper goods.
When a global producer offers its lower costs internationally, it attracts customers who previously held to local preferences. The motivation is to make one's money go further.
8
23 reads
The multinational corporation knows a lot about a great many countries. It adapts to supposed differences, not questioning the possibility of their transformation nor recognising how the world is ready for modernity, especially when the price is good.
By contrast, global corporations know everything about one great thing. It knows about the need to be competitive worldwide and seeks to constantly drive down prices by standardising what it sells. It knows about one great thing everybody has in common: scarcity.
8
22 reads
Money has three special qualities:
People value money. But in an increasingly homogenised world market, people want products that everyone else wants. If the price is low enough, they will choose the standardised products, even if it is not quite suitable nor preferred.
8
25 reads
Different cultural preferences, tastes and standards and business institutions are remnants of the past. Some preferences will die gradually, while others will expand into mainstream global preferences.
Many multinational corporations believe that preferences are fixed. As a result, they falsely assume that marketing means giving customers what they say they want instead of trying to understand exactly what they would like.
8
15 reads
Many companies tried and failed to standardise world practice by exporting domestic products and processes without accommodation.Â
Poor execution is an important cause. More important is the failure of imagination. What customers say they want is often different to what their behaviour demonstrates. Many people will discard previously expressed preferences in favour of other features when it is heavily promoted and offered at an aggressively low price.Â
8
15 reads
The global corporation accepts that technology drives consumers toward the same goals:
Managerially advanced corporations have been eager to offer what customers really want rather than what was only convenient. As a result, they have created huge marketing departments and highly tailored products and delivery systems for different markets and nations. By contrast, Japanese companies operate almost without marketing departments yet have cracked the code of Western markets.
8
17 reads
Japanese companies don't look with mechanistic thoroughness at the way markets are different. Instead, they search for meaning with a deeper wisdom. They discovered that all markets have an overwhelming desire for dependable, world-standard modernity in all things at aggressively low prices.
There are still some differences between nations that are unyielding. Companies can organise their marking efforts by product, region, function, or combination of these. There is no one formula. What works well for one company or place may fail for another in the same place.
8
11 reads
An ancient dictum of economics states that things are driven by what happens at the margin, not at the core. That means in ordinary competitive analysis, what's important is the marginal price, not the average price. What counts in commercial affairs is what happens at the cutting edge.
Companies willing to adapt to and capitalise on economic convergence can make distinctions and adjustments in varied markets. Conversely, companies that do not adapt to the new global realities will be consumed by those that do.
8
15 reads
More like this
Explore the Worldâs
Best Ideas
Save ideas for later reading, for personalized stashes, or for remembering it later.
Start
31 ideas
Start
44 ideas
# Personal Growth
Take Your Ideas
Anywhere
Just press play and we take care of the words.
No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.
Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.
Start
47 ideas
Start
75 ideas
My Stashes
Join
2 Million Stashers
4.8
5,740 Reviews
App Store
4.7
72,690 Reviews
Google Play
samz905
Donât look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.
â
Shankul Varada
Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.
â
Ashley Anthony
This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!
â
Sean Green
Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.
â
Giovanna Scalzone
Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.
â
Laetitia Berton
I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!
â
Jamyson Haug
Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.
â
Ghazala Begum
Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.
â
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Access to 200,000+ ideas
â
Access to the mobile app
â
Unlimited idea saving & library
â
â
Unlimited history
â
â
Unlimited listening to ideas
â
â
Downloading & offline access
â
â
Personalized recommendations
â
â
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates