Glocalization

  Glocalization is a combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market. This means that the product or service may be tailored to conform with local laws, customs or consumer preferences. Products or services that are effectively "globalized" are, by definition, going to be of much greater interest to the end user.

Yahoo! is an example of a company that practices glocalization. It markets a portal that is viewed worldwide and offers different versions of its website (and related services) for different users. For example, it provides content and language variations in some 25 countries including China, Russia and Canada. It also customizes content to appeal to individuals in those locations. 

  

Challenges to Glocalization

To expand into new markets, you need to successfully understand and adapt to the existing local environment. Each culture is different due to their customs and history, one of the hardest part of globalization is understanding your new market and how to be successful in it. A major part of succeeding in this is to be aware which of the four categories of society your target market falls into, is it a

1.   Traditional society such as Arab countries and Japan- these societies value collectivism, religion, tradition and heritage. This means that there is a large emphasis on hirachy and centralized power. This makes it hard for the management in the new country to make decisions and changes effectively and efficiently as they have to go through multiple levels of management before they are approved. In a traditional society it is also very important to network as there is pre-existing channels.

2.   Rational society like Germany- these countries have individualistic values rather than collectivistic but their ideology is still shaped by their past history In these countries the needs of the individual come first which makes it easy to adapt to which creates a welcoming market for new products and companies.

3.   A materialistic society which is commonly characterized as ex-communist countries. This category is relatively new and was created due to the shift in culture caused by an increase in economic opportunity and mainly consists of emerging markets which makes it a perfect market place for businesses to break into as they have no existing channels.

4.   Or a post modern society, this is the largest category of society which consists of countries such as New Zealand and most of western Europe. These countries are defined by having a mix of everything, they are individualists, tolerant to change and multicultural which makes their market welcoming to new products and companies.

It is important to note and understand that countries are constantly evolving and may switch societies, for example the Chinese culture has changed from being a strictly traditional society to being a materialistic society, this is a result of emerging economic opportunities.

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