Question 1: Why were sewing machines one of the world’s first “global products?”
Globalization has gained extreme importance these last years. At an economical level, globalization is understood as the increased movement of goods and money across national borders, which led to the rise of the global economy. International trade has become the center of attention to most of local economies around the world. In the 19th century, the sewing machines that were manufactured by Singer and Company manufactured were considered among the first global products. This was attributed to the increased expansion of its markets beyond the geographical boundaries. During the early 1850’s, the company’s operations were seen expanding to different parts of Europe. It experienced freedom of capital acquisition and exchange of goods in the countries in which the Singer Sewing machine was accessible. In an attempt to realize its globalization, the Singer machine was able to incorporate the various legal regulations that characterize a given geographical region.
Accordingly, in the job market, employees worldwide and the consumers were able to compete in order to either acquire the chance to work with the Singer Sewing Machine company or acquire its products. The economic fate of the global workers is not only tied to the national economies but can also work abroad for the company to realize its strategic objective. The sewing machines success did not depend entirely on the success of an individual country’s success but incorporated the global economies, therefore, the income distribution and wages of its employees is stable. Upon incorporation into the global market, the company was able to improve the sewing machines productivity and in turn increase its competitive nature globally.
Question 2: How was Singer able to capture 90% of the world market for sewing machines?
Singer was able to increase its market share in the economy with the help of Clark’s innovation. After the decline in growth in the sales of sewing machine in the economy and increased lawsuits subjected to the company by manufacturers and competing investors, Cark resolved to focus not only on gaining market share but also on the ways of increasing the company’s capital outlay to enhance expansion globally. The company’s marketing strategy that was deployed was the opening of branch offices in the various regions including New York, Boston, and Philadelphia in an attempt to attract new customers. In addition, there was enactment of Albany Agreement where the incorporated both the domestic and international consumer demands. In the case of domestic demands, the company introduced the hire-purchase plan with its focus being on attracting the majority of the consumers who are not able to afford the cash basis payments. Globally, the company hired independent agents in an attempt to sale its products to the foreigners.