Ch. 7 Questions

Chapter 7 Questions

Discussion Questions:

1. What is the danger in oversimplifying the globalization approach? Would you agree with the statement that “if something is working in a big way in one marker, you better assume it will work in all markets”?

a. I do not agree, as there are many different factors that go into whether a business will be successful in a country or not—just because it works in one culture does not mean it will work in another.

2. In addition to teenagers as a global segment, are there possibly other such groups with similar traits and behaviors that have emerged worldwide?

b. Global elites are a global segment that have emerged, as they are affluent consumers, well traveled, and they have money to spend of prestigious products with an image of exclusivity. Senior citizens are also a global segment that has emerged, as there are increasingly more of them as lifespans increase, and they are mostly pensioners and retirees. They require increased medical treatment for the most part.

3. The concept dubbed “reverse innovation” encompasses any innovation that is adopted first in the developing world and then migrates into mature markets. Why?

c. It is “reverse innovation” because it starts with a developing country, where they usually lack resources to create their own innovations, and usually a product is introduced in an existing and mature market before moving to second and third world countries.

4. Carrefour has adapted many aspects of its product offerings and processes to fit the different consumer demands in various countries. Why?

d. Consumer demands differ from country to country, and thus needs and resources differ. You have to cater to their culture—for instance, beef jerky wouldn’t do well in India (high Hindu population, cows are sacred), but it might do better in Thailand. You have to do your research and make sure that what you are selling is appealing to the market that you want to...