Question

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

1) The world is becoming more homogeneous in terms of consumer preferences.
2) Companies should focus on adapting their products to local markets.
3) Global competition is not as intense as local competition.
4) Companies should prioritize domestic markets over international markets.

Answer 1

One assumption of Theodore Levitt's pure global strategy is that consumer preferences worldwide are becoming more uniform, which fits the current global market trends due to the rise in competition and technological advancements in communications.

Step-by-step explanation:

One of the Theodore Levitt assumptions supporting a pure global strategy is that the world is becoming more homogeneous in terms of consumer preferences. This assumption is aligned with the globalization shift that has changed how markets are defined, where the vast improvement in communications technologies and the development of the internet have significantly increased competition, even in local retail businesses. Businesses now face the challenge of competing with entities from faraway places, making it essential to adopt strategies that cater to a broader, more uniform global market. Antitrust authorities must remain vigilant as markets broaden and companies attempt to extend their monopolies beyond national borders.