Swedish truck makers set sights Russia
The Volvo truck maker Volvo signed an agreement at the St. Petersburg Economic Forum to open a second truck factory in Russia. But its number one ...
What Business You Are in?
Even though, the eminent article titled Marketing Myopia was written by Theodore Levitt in 1975, I acquire the conception proposed in the article is mild very grand relevant. In fact, I assume the notion of the idea will increasingly become more essential for survival in the swiftly changing global business environment.
So, what is the view tedious the above article?В In the article, Levitt has suggested that most companies fail because they account for the business they are in distinguished article titled Marketing Myopia. Simply stated, businesses interpret what business they are in narrowly in terms of the product rather than the benefits the product or service provides to the customer.
He has former the example of railroad industry in the U.S. to interpret what he means. Railways were the backbone of the US economy. However, slowly and steadily, railroad companies in US started going into red. This happened in spite of the fact that the US economy was growing expeditiously. More and more people were traveling and more and more goods were being transported all over the US. To explain their wrong performance, every railroad company was pointing at the dreadful location of the railroad industry as a whole. Levitt suggests that the unpleasant location of the railroad industry was because the railroads defined their business as “railroads” and as such only opinion of other railroad companies as their competitors. Whereas, Levitt suggests that the railroad industry should have defined their business as “transportation of people and goods.” This would have helped the railroad companies to identify who their exact competitors were and who was taking away their business. Knowledge of who their proper competitors were would have made the railroad companies realize that the airlines, trucking industry and the automobile industry were taking their customers away. They would have also realized that they now had to compete with them and not fair with other railroad companies.
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