Globalization means operating in the world economy as a single economy. Globalization is a compulsion now. Globalization is as powerful a force as democracy is. The parallels are obvious. Like democracy spelt equality and increased levels of accountability in society, globalization will create uniformity in customer expectations the world over. This will force suppliers to be far more accountable to consumers.

Impact on product cycles

Business environment of the new millennium will have to contend with:-

1. Turbulent markets that change rapidly and unpredictably
2. Highly fragmented 'niche' markets instead of mass markets
3. Ever greater rates of technological innovation in products and processes
4. Shorter product life-cycles
5. Growing demand for tailored products - 'mass customization'
6. The delivery of complete 'solutions' to customers, comprising products and services.

And all of the above to be achieved at less cost!

Opportunities

Globalization has also increased the opportunities. The mature product in US can be at introductory stage in US. For example GM AVEO is a mature product in US, but in India it is at growth stage. Moreover globalization leads to the creation of the Universal Customer, one who expects the same quality of products and services regardless of where he is located in the world.

This does not mean one customer, one world, one brand or one positioning platform. What it means is that thanks to McDonald's, the expectation of a customer from Nirula's (an Indian restaurant chain) is considerably higher today. Similarly, thanks to LG and Samsung, the expectations from BPL are different today. The expectation of a Nirula's customer in Delhi is far closer to the expectation of a fast food customer in New York. A convergence of expectations is happening globally. And as barriers fall further, technology advances rapidly, customers talk more to each other on the back of a robust telecom network, the ranks of the Universal Customers will only swell. To meet the challenge of simultaneously reducing cost and enhancing customer value requires a radically different approach to the way the business responds to marketplace demand.

Cultural issues

Organizations has to customize the product according to the nations and their culture. Take the case of McDonalds in India. In India the Big Mac transmogrifies into the Maharaja Mac, a mutton burger in deference to religious injunctions against the consumption of beef and pork. Also in India vegetarian and meat dishes are prepared in separate areas of the restaurant in respect for vegetarians. Moreover it used competitive pricing and localization of the products in India. In India it has introduced and successfully launched the product variants, which suits the Indian culture. For example Wider Vegetarian Menu, including local delicacies. It made the product affordable to attract the masses and to increase the turnover. McDonald's capitalized on the opportunity by developing products that have the potential to be sold by the parent's outlets around the world. The parent abroad is already replicating a few of these products - Pizza McPuff is being exported to McDonald's in the Middle East and McWrap, too, has created sufficient interest.
McDonald's made a burger, 'Indian,' and the experience of eating it 'Indian,' in tiny ways which one don't notice, but which influence the buying behaviour.

Between 1992 and 1996 -- when the first McDonald's outlet opened in the country -- it was working frenetically to put the perfect supply chain in place. That involved handholding farmers until they learnt to produce lettuce or potatoes to McDonald's specifications or working with a vendor to get the perfect cold chain in place. Or explaining to the suppliers precisely why only one particular size of peas was acceptable (too large and they would pop out of the patty and get burnt).

It meant figuring out the right menu -- substituting mutton for beef, something it has never done in any other market, choosing names like McAloo or Maharaja Mac, adding variations and dishes that don't appear in any other McDonald's chain anywhere in the world. Finally, it meant getting the pricing just right. The Maharaja Mac ensured that McDonald's main offering was competitively priced. No wonder "McDonald's has established itself as the family's favorite quick-service restaurant.

Finally, it meant getting the pricing just right. The Maharaja Mac ensured that McDonald's main offering was competitively priced.
No wonder "McDonald's has established itself as the family's favorite quick-service restaurant," beams Amit Jatia, managing director of Hardcastle Restaurants, the Mumbai Franchisee of McDonald's.