GLOCALIZATION

“Glocalization” is acting globally, but thinking locally. It is the idea of multinational corporations practicing globalization by expanding worldwide, yet tailoring their marketing and advertising strategy, or goods and services, to each of the local markets. Therefore, the company is global, yet local.

During the past decades, international corporations would have to pinpoint what part of their products would have to be altered in order to be sold in foreign markets. For example, technology items had to have the right language in their Users Manual and automobiles had to have a steering wheel on the proper side of the vehicle. This type of localizing evolved and companies also became aware of special cultural norms.

Market rivals are checking out ways to give themselves an edge in a specific local area. Korea’s LG Electronics has tried to draw Muslims in the Middle East to purchase its mobile phones. It attempts this by including software that shows the direction of Mecca. Since Muslims are supposed to pray in this direction five times per day, this might be a special feature that they find useful. It will not likely start a revolution in the mobile phone market, but it might be just enough to tip the balance to LG when Muslim consumers decide to purchase their new handsets.

VOCABULARY:

Tailoring – customizing, making in a specific way for a special purpose
Ex: Tailoring cars for the U.K., we put steering wheels on the right side.

Altered – changed, modified
Ex: we altered our meeting schedule.

Evolved – changed as time went on
Ex: the company has evolved from having 10 workers to 45.

Cultural norms – normal and acceptable behavior in cultures
Ex: learning cultural norms is important for international business.

Draw – attract
Ex: let’s hope this new ad will draw more customers to the store.

Mecca – in Saudi Arabia, holiest place for Muslims
Ex: my boss visited Mecca when he took time off from work.

EXPRESSIONS

Pinpoint – determine exactly
Ex: once they pinpoint the problem then they can solve it.

An edge – an advantage
Ex: lower prices will give the company an edge over others.

Tip the balance – give the advantage
Ex: if candidates know a foreign language it will tip the balance for them to be hired.


DISCUSSION POINTS:

1. How can foreign companies improve their “localization” to better understand regional or cultural differences?
For instance, a popular drink in Korea is Pocari Sweat, but that would probably not sell well in English-speaking countries. This is because the people would feel that as if they were drinking sweat.

2. How can your company be more sensitive when it sells its products abroad?
For example, should Asian manufacturers produce larger vehicles for the North America market because, in general, North American customers need or want more space?

3. Are there any minor problems when products are sold in foreign markets which create a negative image of a company but could easily be fixed?For instance, are there spelling mistakes in manuals or misinterpretations in translations?

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