Economic and cultural changes are causing a flattening of the economy. The World is Flat: A Brief History of the Twenty-First Century is a book about the impacts of globalization in the beginning of the 21 century. The title, a metaphor for observing the world as a place where the playing field is leveled, became an international bestseller when it was written by Thomas L. Friedman in 2005. The book illustrates the notion that competitors and different companies have equal opportunity in the market. The book explains that in the 2000s, the market place offers a playing field where communication and buyers and sellers come together to create an environment of equal opportunity. Because of the increase in technology, which facilitates more effective communication, transportation, and sharing ideas, it is easier to connect people with each other in this globally intertwined market. For marketers, the book holds a lot of relevance and has a lot to offer in terms of techniques and mindsets.
The book talks about a journey to India, and shows how globalization fundamentally altered economic concepts. More than ever before, buyers have access to markets and markets have access to buyers. Cell phones, computers, and advances in technology have enabled the existence of such a universal marketplace. Freidman, the book’s author, talks about instances in China and India where workers are linked to companies in the United States. Freidman cites Dell, Microsoft, and AOL as having core ties with these eastern countries. There were 10 “flatteners” in particular that Friedman cites for being causes of the globalization of the world. The first was Workflow software. This was Freidman’s all-encompassing notion for the technologies and standards, which enable work to flow smoothly and be, operated worldwide. The power of software to communicate with other software without the need for humans is core to the evolution and development of the global market. The collapse of the Berlin wall also had a big impact on the flattening of the economy. When this happened, people on both sides of the wall were able to join the same market. The end of the Cold War signified a shift to globalization.
88% of people recognize the changes that come along with globalization. In fact, 85% even believe that globalized brands have the potential to add value to our lives. For marketers, The World is Flat can provide much more than just a historical context of the market place. It is a critical read for marketers because it explains the ways and reasons in which the world’s markets are interconnected. As a marketer, it is essential to be able to know the market, understand the connections within the market, and plan campaigns strategically to be able to understand the implications that there efforts have globally. The book is helpful for business people who want to expand their company or reach new territories. For, DesiMarket The World is Flat was pivotal for their success. As DesiMarket CEO Lavy Blaggan said, “The book helped us bring an Indian company to an Australian marketplace and succeed.” Leveraging the ideas from the book, Blaggan was able to successfully understand and implement new business entities in a foreign country.
For marketers to be effective in planning and executing international marketing plans, understanding the interconnectivity is crucial. Beyond that, marketers should also understand why globalization occurred, and how it took place. Offshoring played a key role in this. More than ever before, companies are using offshore development teams, manufacturing teams, engineering teams, and people from China, India, and Europe to do work for projects in other countries. Informing was also an important aspect for globalization. People now have access to limitless amounts of data and information right at their fingertips. Search engines and data housing centers like Google and Wikipedia are chief distributors of information in the worldwide economy. The search engines process billions of inquiries everyday, fueling just as many insights for individuals. The Internet provides a wealth of information and usefulness for individuals sharing information or acquiring it. The ability of people and communities to upload information online enables global collaboration on software projects. Rather than relying on email or phone, using open source software allows the work place to be unlimited in its reach across the globe. People can now work together regardless of where they are. Marketers need to understand that information spreads quickly. There is no such thing as market segregation. If you release information in one place, you can expect it to be shared in other places as well. This is good news and bad news for marketers. The good news is that marketing messages can more easily permeate into different markets. The bad news is that channeling your market efforts into an individual niche is very difficult because it can spread to other parts as well.
