Based on Levitt's (1983) contribution, the technology is one of the factors which affects firms to globalize their strategy (p.92). The other factor is the cultural, that is consumer homogeneity (p. 96). It means that preferences and tastes of consumers are becoming the same around the globe. The main aspect here is that communication (e.g. internet, cable television) is in hands of normal people because through technology its costs have been reduced. Consequently, people around the world want all the things they have watched, heard and experienced via new technologies. So it means that the firms hast to decide if it will standardize or customize its product according the market they penetrate. Based on the proposal of Levitt (1983) and Douglas and Craig (1991), if the firms consider themselves as global player, they would opt for standardization of products because of consumer homogeneity.
According to Douglas and Craig (1991) contribution, the competitive pressure (p.51) in the global market forces firms to defend their market position. Rivals are no more only in the domestic markets but in all markets around the world; consequently firms have to be around the globe fighting with their competitors.
In this situation, firms have to control their internal factors related to Resource-based View.