What Is Glocalization?
Glocalizationis a combination of the words "globalization" and "localization." The term is used to describe a product or service that is developed and distributed globally but is also adjusted to accommodate the user or consumer in a local market.
A common example would be cars that are sold worldwide but adjusted to meet local criteria such as emissions standards or what side the steering wheel is located. It could also focus on more cultural aspects, such as a global fast-food chain offering geographically specific menu items that cater to local tastes.
Often,glocalizationcampaigns involve culturally friendly media and ad campaigns to encouragethe acceptance of foreign products among a local audience.
Key Takeaways
- Glocalizationis a combination of the words "globalization" and "localization."
- The term describes a product or service that is developed and distributed globally but is also adjusted to accommodate the user or consumer in a local market.
- Often,glocalizationcampaigns involve culturally friendly media and ad campaigns to encouragethe acceptance of foreign products among a local audience.
- The process can be expensive and resource-intensive, but it often pays off for companies that practice it.
Understanding Glocalization
Glocalization is the adaptation of global and international products into the local contexts they're used and sold in. The term was coined inthe Harvard Business Review, in 1980, by sociologist Roland Robertson, who wrote that glocalization meant "the simultaneity—the co-presence—of both universalizing and particularizing tendencies."
In regards to a particular product orservice, this means the adaptation ofglobally marketed products and services into local markets. Aglobal product or service, something everyone needs and can get use out of, may be tailored to conform to local laws, customs, or consumer preferences.
Products that are "glocalized" are, by definition, going to be of much greater interest to the end user, the person who ends up using the product.This is because, while it's something that everyone can use and has use for as a global product, its localization makes it more specific to an individual, their context, and their needs.
While glocalization helps customize an international corporation's products to a particular culture or geography, companies must also pay attention to the risk of perceived cultural appropriation.
Special Considerations
Glocalization works for companies with decentralized authority structures and for companies that exist and compete in multiple, different cultural contexts. The process can be expensive and resource-intensive, but it often pays off for companies that practice it, as it allows for greater access to a larger, more culturally varied target market. It also makes those companies more effective competitors in those markets.
If globalization was charged with cultural hom*ogenization, glocalizationand multicultural organizations are something of an answer to it. Glocalizationcan bethought of as the opposite, or the inverse, ofAmericanization (sometimes called McDonaldization), too,which is the influence that American culture and business have on another country'sculture.
What Is Meant by Glocalization?
Glocalization is when an international corporation modifies some of its offerings in order to accommodate local consumer tastes or preferences. It is a portmanteau of the words "globalization" and "localization."
What Are Some Examples of Glocalization?
Glocalization comes in many forms. For instance, in the U.K., car producers must build vehicles with the steering wheel on the right side instead of the left. Food items are also changed in different countries to fit local tastes. McDonald's Corporation (MCD) and other fast-food chains will often serve up versions of local fare along with the core menu of hamburgers and chicken products. Brand image and marketing campaigns are also carried out in local languages and with local customs and cultural cues in mind.
What Is the Difference Between Globalization and Glocalization?
Globalization is the spread of products, ideas, and capital across international borders by corporations. One criticism of globalization is that it can result in the hom*ogenization of cultures and consumers around the world. Glocalization pays attention to local practices, customs, and culture to have these products better fit regional wants and needs.
The Bottom Line
Glocalization efforts have produced mixed results for the larger economy. In making global companies more effective competitors against domestic players, glocalization should increase the quality of competition anddrive down prices, making goods more accessible. However, since glocalization is generally the practice of largemultinational corporations, driving the price down and taking a big share of the market, the process can hurt smaller, local businesses, which struggle to compete with these corporations' low costs of production. This can result in less competition, with the result of driving prices up.
FAQs
Glocalization allows businesses and organizations to tailor their products, services, and marketing strategies to align with local cultures and preferences. This cultural sensitivity helps build stronger connections with local consumers and avoids misunderstandings that may arise from a purely global approach.
What glocalization means advantages and examples? ›
Glocalization is the tailoring or altering of a good or service to meet the local community's wants or needs by an international business. A few examples of companies that have effectively put the glocalization concept into practice include Coca-Cola, Disney, and McDonald's.
Which is an example of glocalization? ›
What are examples of glocalization? There are many examples of companies succussfully glocalizing. A few instances include McDonald's and Starbucks adapting their products for the Indian market, Netflix varying its showings based on viewer location, and Apple adjusting its marketing strategy for Japan.
What are glocal advantages? ›
One of the key advantages of glocalization is its ability to tailor products or services according to local preferences. By understanding the unique needs and preferences of different markets, companies can customize their offerings to better align with local tastes, trends, and cultural nuances.
What are the negatives of glocalization? ›
However, glocalization can have some negative effects on local cultures. Because it's geared toward standardization and establishing the influence of foreign brands, glocalization can contribute to the loss of cultural identity.
What are 3 advantages and disadvantages of globalization? ›
For businesses, the advantages of globalization can include cost savings, international recruitment, specific market opportunities, and the spreading of risk. 4. Potential disadvantages of globalization for world economies include possible monopolization, structural unemployment, inter-dependence and tax avoidance.
What are some examples of glocalization in America? ›
Successful examples of glocalization
- McDonald's glocalizes its products around the world. ...
- Whirlpool fashions products for foreign markets. ...
- Coca-Cola's wins over Filipino audiences. ...
- Starbucks glocalizes food and drinks for Indian customers. ...
- MTV learns why they've got to glocalize. ...
- Mars takes on two names.
A manufacturer assembling a product for a distant market, a country submitting to international law, and a language adopting a foreign loanword are all examples of globalization.
How is Coca-Cola an example of glocalization? ›
Coca-Cola's glocalization strategies include brand strengthening, network distribution, improving human resources, and being mindful of local cultures in each country of operation. The paper discusses how Coca-Cola uses local cultural indicators in Kyrgyzstan to create target texts and campaigns.
Is McDonald's an example of glocalization? ›
McDonald's adapts the food served, restaurant design, and customer service across different countries and cultures in order to deliver the McDonald's experience. So how did McDonald's, the American fast food giant, become a global success story? The answer, McDonald's adopted strategy of glocalization.
What are the benefits of globalization?
- Access to new cultures. ...
- The spread of technology and innovation. ...
- Lower costs for products. ...
- Higher standards of living across the globe. ...
- Access to new markets. ...
- Access to new talent.
Globalization gives businesses the opportunity to expand into new markets, reach international buyers, and increase revenue. Over time, companies can experience saturation for demand of their products or services domestically. By expanding globally, they can continue growing by meeting foreign demand.
What is an example of a glocal strategy? ›
What Are Some Examples of Glocalization? Glocalization comes in many forms. For instance, in the U.K., car producers must build vehicles with the steering wheel on the right side instead of the left. Food items are also changed in different countries to fit local tastes.
What is the difference between globalization and glocalization? ›
Glocalization refers to the adaptation of global products and strategies to local markets and cultures. While globalization emphasizes a global perspective and hom*ogenization, glocalization involves considering both global and local perspectives and allowing for cultural diversity.
Which of the following is a potential benefit of glocalization? ›
Glocalization allows businesses and organizations to tailor their products, services, and marketing strategies to align with local cultures and preferences. This cultural sensitivity helps build stronger connections with local consumers and avoids misunderstandings that may arise from a purely global approach.
What are 3 negatives of globalization? ›
On the other hand, critics of globalization will point to the negative impact it has had on specific nations' industries, which might face increased competition from international firms. Globalization can also have negative environmental impacts due to economic development, industrialization, and international travel.
Why is globalization good examples? ›
In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods.
What is the glocalization of Starbucks? ›
Starbucks' Localization Strategy: Starbucks, known for its global presence, emphasizes glocalization by adapting its stores and products to local tastes and preferences.
