Glocalization
Glocalization is a concept that merges globalization and localization, focusing on how global entities adapt to local cultures and markets. It reflects the necessity for international businesses to tailor their products and strategies to align with regional tastes and practices. A prime example is McDonald's, which modifies its menu and marketing approaches to resonate with local dietary customs, such as offering vegetarian options in India and kosher meals in Israel. This adaptation allows companies to function effectively within foreign economies while maintaining their brand identity.
In the realm of social sciences, glocalization describes the process by which local cultures incorporate elements of foreign cultures, often leading to unique cultural blends rather than homogenization. This concept challenges the notion that globalization leads to a singular world culture, suggesting instead that local interactions play a vital role in shaping global influences. The term emerged in the 1980s and has evolved, with sociologist Roland Robertson emphasizing its significance in understanding globalization's reliance on local customs. Ultimately, glocalization highlights the dynamic interplay between global and local cultures, illustrating how businesses and societies adapt in a connected world.
Glocalization
Glocalization is a term used in a variety of academic and business fields to describe how aspects of world culture and international businesses are adapted for a local population. Glocalization is an extension of the principle of globalization. The word itself is a combination of "globalization" and "localization."
Globalization has two meanings, depending on whether the term is being used in business or academic arenas. In business, globalization refers to the integration of worldwide economic, financial, and communication sectors; in the social sciences, globalization is a consideration of the increasingly interconnected nature of world societies and the resulting impact on individual communities. Glocalization, accordingly, also has different but related meanings depending on the context in which it is used.
Glocalization in Business
In business, glocalization is focused upon tailoring a business or product to appeal to regional tastes. The glocalization of a company requires that they be able to be functional within a foreign economy. This necessitates that the company is capable of matching the prices of local businesses, while navigating local government regulations and traditions.
To achieve glocalization, a business must learn to adapt aspects of products and businesses from one culture so that they are more likely to be both saleable and useable to consumers in another culture. The most commonly given example of this business model is the fast-food chain McDonald's. As an American company, McDonald's developed its menus and business strategies based on American tastes and customs. However, when McDonald's decided to expand its operations into foreign markets, it changed its recipes and offerings to suit the palates and habits of its new clientele, while altering its marketing strategies to recognize differences in culture.
For instance, the Hindu population in India believes it is taboo to eat beef, so Indian branches of McDonald’s offer dietary alternatives, such as chicken, lamb, and vegetarian meals. Similarly, Israeli restaurants offer kosher items that fit in with Jewish dietary law. McDonald's also serves different portion sizes in its foreign stores in accordance with local tastes. Even its iconic burgers received makeovers in these markets. Japanese stores offer the EBI Filet-O-Shrimp Burger, which combines a Panko-battered shrimp patty with tempura sauce.
Marketing tactics were adapted to foreign markets as well. During Ramadan, Muslims practice a strict form of fasting from sunrise to sunset. To accommodate this custom, McDonald's advertisements in Arabic countries do not depict food or drink during Ramadan, but instead solely promote the McDonald's brand.
However, despite these differences, McDonald's still markets itself as an American brand, a strategy intended to take advantage of its reputation as being a part of a distinctly American experience. As a result, despite the differences in menu items, McDonald's includes American-style fries and shakes at all stores—an element intended to further promote its American mystique.
Tech companies have followed this strategy, as well. Google and Bing align their search engines so that all users are automatically redirected to homepages specifically customized to their nation or region.
Glocalization in Social Sciences
Under the principles of globalization, advances in technology—particularly in the fields of communication and transportation—have enabled world cultures to interact at a rapid pace. As a result, various populations from around the world are increasingly apt to incorporate aspects of foreign culture into their own, leading to a growing similarity between cultures. This process is called homogenization. In its most extreme form, some critics present an image of the future in which all cultures have merged into a single, generically blended world culture.
Glocalization has been proposed as an alternate hypothesis to this model. In this sociological sense, glocalization refers to the tendency of local populations to adapt foreign cultures to fit their own. For instance, most cultures naturally absorb and alter foreign words to fit their own lexicon (language). These sorts of cultural interactions have precedents throughout history. For example, when the Roman Catholic faith was introduced to Latin America, locals were often able to fuse the precepts of Christianity with their own native belief systems.
The expression "Think globally, act locally" is another extension of this philosophy. From an environmental perspective, many activist movements seek to protect the world through smaller initiatives like those that protect individual forests or reduce greenhouse gases in a single city. The intent is to make an impact on a global level by fixing a regional problem.
History
Glocalization as a concept is believed to have been originally conceived by Japanese businesspeople in the 1980s, as a means of extending local business strategies. During this early era, the term pertained solely to corporate practices. However, the concept has evolved greatly since its inception. In the 1990s, glocalization became a strategic model in international business as companies sought to take advantage of foreign investment and marketing.
In 1995 sociologist Roland Robertson applied the concept to broader sociological issues. Robertson argued that glocalization was merely an aspect of globalization rather than a response to it. In other words, Robertson suggested that globalization relies on local interactions between native and global cultures to function. As such, globalization is the sum total of all individual glocalization efforts.
George Ritzer coined the related term grobalization in 2004 to serve as a tangent to the sociological ideas of globalization and glocalization. By definition, grobalization is a deliberate attempt by various institutions to force their customs upon foreign cultures. Under this idea, the world is intentionally becoming less culturally diverse. While Ritzer's theory has some positive aspects—such as the promotion of healthcare initiatives and technology that extend lifespans—overall, grobalization contributes to the homogenization of societies around the world.
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