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Glocalization Meaning
Glocalization is a term used in business and economics to describe the process of tailoring an international product or service to better fit the wants or needs of a local community. The concept merges two different terms, as in “globalization” and “localization,” representing the amalgamation of something local and global.
Glocalization can allow businesses to connect with people from around the world in a way that wasn’t achievable before. Glocalization involves incorporating the foreign concept into the local custom and traditions so that the people can identify and relate with it. Therefore, Glocalization always comes with efforts to win the approval of local culture.
- Glocalization is the tailoring or altering of a good or service to meet the local community’s wants or needs by an international business.
- Technological advancements have made Glocalization a possibility (Eg: The internet, cellphones, air transport)
- A few examples of companies that have effectively put the glocalization concept into practice include Coca-Cola, Disney, and McDonald’s.
- Glocalization differs from Globalization in that glocalization deals with customizing products or services to blend with the local customs.
How Does It Work?
Glocalization is ultimately why a particular good or service made by the same company may look or feel differently in various parts of the world.
This concept is not confused with Globalization but shares some of the same attributes. For example, both ideas have to do with connecting on an international level. However, Glocalization has more to do with businesses connecting with different cultures and groups of individuals rather than a country connecting to another nation.
Over the years, advancements in technology have made this idea a possibility. As new technology is developed, it makes the world smaller and smaller, allowing people and businesses to connect in previously unavailable ways. A few examples of technology that has boosted our advance in this area can include:
- The internet
- Cellular technology and smartphones
- Air transport
As the world becomes more interconnected, businesses must adapt to local cultures and alter their products or services to fit those individuals’ needs or wants. Since different cultures can vary dramatically in their beliefs and desires, companies must recognize that and adjust their products accordingly.
Glocalization of Coca-Cola
For example, The Coca-Cola Company has been a leader in expanding globally and becoming an international business. Coca-Cola has been recognized as one of the world’s most valuable brands for many years now. They have accomplished this through product diversification and clever marketing tactics. A few different products The Coca Cola Company offers in different regions of the world include:
- Barrilitos Aguas Frescas (Mexico)
- Coca-Cola Light Santa (France)
- Coca-Cola Rasberry (New Zealand)
- Citra (Japan)
- Coca-Cola Lime (Romania)
- Coca-Cola Ginger (Australia + New Zealand)
It can be a challenging idea for some businesses to grasp as they look at the big picture and assume mass production is the answer. Often, products or services produced in one country may not fit the local population’s desires in another nation.
Examples
Several examples of businesses are successfully expanding around the globe while also “thinking locally.” Here are a few of them:
Example #1 - The Walt Disney Company
The Walt Disney Company is a prime example of a brand implementing a successful glocalization strategy. Disney generates the bulk of its revenue from theme parks, movies, merchandise, and now through their new streaming app called Disney +. Throughout the company’s history, they have made smart acquisitions and creative endeavors that have allowed them to expand into much more than just a theme park.
Although many of the Disney Company’s products may look the same, they have tailored many of them to blend with local customs and traditions. The Disney theme parks are an example. Here are a few ways they differ from one another.
- Each park has a “featured castle” tailored to the local region. (Ex: Le Chateau de la Belle au Bois Dormant in Disneyland Paris)
- Merchandise, holidays, food, drinks, and the traditions performed at each park are customized to honor local culture. (Ex: Feng Shui in Hong Kong Disneyland)
- And finally, the theme parks host different versions of traditional rides and ride unique to the region. (Ex: Sinbad’s Storybook Village in Tokyo Disneysea)
Disney’s successful glocalization techniques have led them to be the subject of numerous case studies. According to one such study, after launching the theme parks in Paris and Hong Kong and noticing some of the disconnects between the brand and the local culture, Disney decided to take a different route with the Shanghai Disneyland park. Thus, they applied emotion branding, going with the slogan “Authentically Disney, Distinctly Chinese.”
This strategy proved to be a massive success for the brand by focusing on traditions and customs aligned with the local population, such as focusing on the family experience and promoting a relationship between Disney and China, rather than China and the U.S.
Example #2 - McDonald’s
The fast-food chain McDonald’s is widely considered one of the most successful examples of Glocalization due to its rapid expansion and its accomplishment of being one of the biggest fast-food chains in the world (#2).
As a result, what started as a Speedee Service System offering 15 cent hamburgers has grown into a fast-food empire featuring over 36,000 locations in over 100 different countries.
So how did a fast-food chain from California end up with locations all over the world? They adapted to the local cuisines and offered products that residents desired at an affordable price. Here are a few examples.
- Veggie Pizza McPuff (India)
- Samurai Pork Burger (Thailand)
- Shakachiki Red Pepper Chicken (Japan)
- Mozzarella Dippers (U.K.)
- Shrimp Burger (Korea)
- Poutine (Canada)
- Greek Mac (Greece)
- Mckroket (Netherlands)
Today, most people can recognize the brand simply by its golden arches and red and yellow colors featured in the logo.
Why Is Glocalization Important?
Glocalization is essential for an international economy to be established. Below are some of the ways how it benefits the world.
- Gives companies access to new markets.
- Integrates economies around the world.
- Establishes fairness when entering a new market.
- It can create jobs in different areas.
- Expands economic risk.
- Allows companies and various governments to work together.
- It can be good for developing countries.
- It helps to spread cultures and traditions.
- Encourages diversity.
- Finally, it can help increase the standard of living.
For instance, consider the Disney example for a moment. When Disney entered the Shanghai market, they realized they would need to learn about the local culture and what they value to connect with them emotionally.
By doing so, they are promoting the culture and traditions of the locals. In other words, as people worldwide visit Shanghai Park, they will learn more about the culture and traditions they value. In addition, it helped with the popularity and growth of the park, giving Disney access to another market. The park has also created a network of jobs for locals to take advantage of and encouraged economic development.
Glocalization vs Globalization
Glocalization and Globalization are two terms that seem to be the same but portray two different meanings. Globalization is defined as the process of localizing a concept or idea that is on a global level to a scale that fits the local or regional needs. Glocalization in economics is the launching and cultural appropriation of a product to be accepted among the local customers. This process also involves content localization, ensuring that products, services, or ideas are effectively tailored to resonate with the cultural and linguistic context of the target market.
- Globalization refers to the economic activities between various nations to promote international trade. This practice will include businesses exchanging products and services with other establishments in different countries.
- On the other hand, Glocalization is more particular and includes altering goods or services to meet the local culture’s expectations. It is essentially a combination of doing business on a global scale but conforming to the local’s traditions. (Globalization + Local)
Frequently Ask Questions (FAQs)
Globalization is defined as the process of localizing a concept or idea that is on a global level to a scale that fits the local or regional needs. Glocalization in economics is the launching and cultural appropriation of a product to be accepted among the local customers.
Glocalization in education is the reflective transformation of academic programs and courses that are uniform to the world concisely and regionally so that it is distributed in a local format among students.
Glocalization helps international brands and firms to enter the local market and improves the horizon of their sales. Similarly, any piece of idea or concept can gain worldwide coverage if they are appropriated in a manner that is acceptable to a local group of audience. It would encourage cultural inclusion and upliftment of life standards.
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