Globalization, Localization, and Glocalization: A Comparative Analysis

This report delves into the concepts of globalization, localization, and glocalization, examining their impact on business strategies and market expansion. It analyzes the advantages and disadvantages of each approach, providing real-world examples such as Cadbury, Louis Vuitton, and McDonald's. The report explores the rationale behind adopting these strategies, including the need to adapt products to local markets while maintaining a global presence. It also discusses the benefits of glocalization, which combines global reach with local relevance, and offers recommendations for companies seeking to maximize their success in international markets. The report covers literature assessments, research questions, methodology, and ethical considerations to provide a comprehensive overview of the topic.

Globalization and Localization -
Glocalisation

ABSTRACT
In order to consider present proposal of dissertation, it includes introduction, aim,
objectives, literature review, methodology, etc. All these considerations help to gather relevant
information to prepare dissertation. In the present, research conduct study to analyse
effectiveness of globalisation and localisation. Therefore, it has been found that globalisation is
the best perspective to increase profits and revenue from different areas of the world. On the
basis of different previous research, books and journals, literature review included that helps to
find more significant advantages towards aim with previous research. At last, methodology
explained aids to find relevant information towards whole program of research outcomes.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Rationale ................................................................................................................................5
LITERATURE ASSESSMENT......................................................................................................5
Concept of globalisation.........................................................................................................5
Localisation strategy...............................................................................................................6
Glocalisation strategy.............................................................................................................7
Recommendation to increase benefits for companies with glocalisation...............................7
RESEARCH QUESTIONS.............................................................................................................8
PROPOSED METHOD...................................................................................................................9
Research strategy....................................................................................................................9
Research design......................................................................................................................9
Access issue..........................................................................................................................10
Proposed work plan..............................................................................................................10
Ethical consideration............................................................................................................11
Research limitations.............................................................................................................11
Proposed data handling and analysis....................................................................................12
CONCLUSION AND RECOMMENDATIONS..........................................................................12
Conclusion............................................................................................................................12
RECOMMENDATIONS:....................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The term Globalisation is defined as a process through which regional and national
economies, cultures and societies have become integrated through global network of trade,
communication, transportation and immigration. Globalisation has helped in worldwide
movement of trade, goods and services across national frontiers. This phenomena has helped in
bringing the world to a single platform where different culture, lifestyles and economy meet and
exchanges their customs and traditions. This has created world into global village and help in
bringing down all the cultural and geographical barriers.
Globalisation has increased due to support of various factors like; Social media, dev
eloping of new electronic payment system, Development of infrastructure that supports
globalisation. Further, internet has enabled fast and accelerated 24/7 global communication
which brings company closer to their prospective consumers. Cadbury is the British
multinational company established in the year 1824 with the purpose of become great dealers in
confectionery products across the world. Cadbury has adopted globalisation to expand their
business and be the globe market leader in confectionery products. Company has opened
different shops and branches to launch their products in different markets of the world which
include some prominent and emerging market place of Asia and Africa.
The advantages of globalisation that helps Cadbury are as follows:
 Cadbury benefited from access to large markets of Asia which help company to gain
more demand for their products and get advantage through cheap labour.
 Globalisation has assisted Cadbury to get economies of Scale for its products.
 Cadbury was benefited with the laws and regulations of country for developing its
production unit in those countries.
Localisation is different from globalisation and it refers to process of adapting a product
or content to specific local market to fulfil the requirements of local people. It includes adjusting
functional properties of a product, customising it according to local customs and traditions, etc.
Louis Vuitton is a French Fashion house and luxury retail company established it business in the
year 1854. Company is famous for selling wide range of luxury products and leather goods
which are ready to wear through boutiques, Malls, high-end departmental stores and e-commerce
platform. Louis Vuitton has adopted strategy of localising it products in different countries of
Asian markets.

This brings along competitive advantage for company and help in increasing its market
share in the local community. Louis Vuitton was benefited by gaining competitive advantage
from other stores like; ZARA, H&M , etc.
Rationale
In order to conduct present study, the aim is to know the benefits that can be derived by
company when it adopts both globalisation and localisation as their marketing strategy.
The term glocalisation was adopted by combining both globalisation and localisation in
order to deliver product at global level and maintain it according to needs and demands of local
customers. McDonald's has adopted glocalisation by adjusting its menu list according to
preferences of its consumers in different nation and selling products across the world.
LITERATURE ASSESSMENT
Concept of globalisation
As per the views of Lawrence and Almas, (2018), globalisation process plays a very
important role in success of every business. There are different strategies of globalisation such as
partnership, joint venture, etc. which help company to recognise their potential customers and
paves way for them to reach towards them. For example; expansion of Walmart in parts of
Europe through owning a UK company ASDA that helps to place a strong position of company
in markets of Europe and United Kingdom.
On the other hand, Olise, Okoli and Ekeke, (2015), stated that, in globalised scenario,
domestic industry become more conscious about managing quality in production. Economic
process is usually focused on restructuring production and trade pattern that favours expansion of
trade services. In different sector, it is important to make globalisation because developing
country have become conscious for price reduction and quality improvement in products to deal
with foreign competitors.
However, Mylonakis and Evripiotis, (2016) argued that globalisation also consist of
disadvantages to companies. The over-standardisation of products by global branding has create
barriers for many local producers and small companies. For instance; maximum number of world
computers uses Microsoft Windows operating system this leads to lack of product diversity and
presents barriers to entry for localise firms.

As per the points of Lii, (2017), in developing nation, it is necessary to distinguish in
three different forms of global strategy. For instance, international expansion considers need of
resources, capabilities and current position of business. As a result, enterprises focus on its home
market instead of strategies adopted in international areas. On the other hand, Pieterse, (2015)
generated their views that in globalisation business adopts multinational strategy that involve
several numbers of markets that are beyond its home country.
Localisation strategy
As per the views of Song, Goto and Wolff, (2015), localisation is the beneficial strategy
that help company to gain competitive advantage in the present market scenario. Companies are
modifying their current market strategies in accordance to the place of its operation. Localisation
proves to be an effective tool that help big companies to be different in their marketing strategies
and build reputation public image through their products. For Example; Coca Cola has started
the campaign to “ Share The Coke” this was successful approach of company to market its
product and bring along the values it cherishes through this campaign.
According to the point of Maxfield, Patil and Cunningham, (2016), when businesses
enter in new areas, example; Parada and Louis Vuitton localisation strategy for Asian markets.
Localisation helps in lowering down the cost of production and improvement in quality of goods
and services as company is benefited from the skilled and competent labour available in the
particular region. Along, with this firm get quality materials timely credits and advantage of
developed infrastructure.
Beside this, Park, Ungson and Cosgrove, (2015), interpreted that political factors sums up
with exercising power of the country's government. Hence, political changes influence market
functions which are unstable for enterprises. It helps to focus on economic condition that
increases income level, employment, inflation, etc. Brexit in United kingdom has created
problems for many firms as it laid down many changes which company needs to address for
running their business.
According to Heasman, M. and Lang, T., 2015, there are many factors which creates
problems for organisation when tit adopts process of localisation. Multinational and huge
companies like Unilever and P&G employ large number of people for their operation and cheap
labourers are the first requirement of firms. This brings along many social problems like;
Emergence of Slums, Strikes, Congestion and accidents, etc. Further, local economies are

degraded with these social issues and it generates a critical situation for people living in those
economy. This is because more congestion gives birth to issues like disease, poverty and
malnutrition.
Glocalisation strategy
According to the view of Grew, (2018) to expand and grow their business companies are
adopting new strategy i.e. glocalisation. This idea proposed that firm should develop products
that meets demand of both firm and their prospective consumers which means company should
rebuild its products that meet needs of local customers. Further, it maintains its global impact
and market share. For example; Mc Donald's has maintained its impact in every country across
the globe by rebuilding its menu and services according to preference and needs of its consumers
in local markets.
Further, Aaltojärvi, Kontukoski and Hopia, 2018, glocalisation strategy focuses on
positioning and targeting local customers of that region and assures that product is properly
placed in market. Mc Donald's adopted strategy that their product or service is adapted to each
local or culture where good is being marketed. This help company to gain a position to connect
emotionally through consumers and have relevance in local areas.
However, Catherine Henderson, J., 2014 states that demerit of following this strategy for
companies are that they are not able to realise proper location of their target market and fails to
build the product according to needs of consumers. Companies are at risk when they gvgo for
glocal strategy as there are more chances of rejection of product by local economies which
creates a huge loss to firm. Further, products made by organisation may hurt the sentiments of
local people and they may boycott products produces by that of firm.
Recommendation to increase benefits for companies with glocalisation
As elucidated by Park, Ungson and Cosgrove, 2015 glocalisation can be defined as
activity to conduct business according to both local as well global thought of staring the new
organisation. Glocalization indicates the growing importance of continental and world levels is
happened together with the increasing salience of local and regional levels. The benefit of
glocalisation is that it develops a product or services strategy that takes merit of global product
level and combine it with the advantages of product localization. By this way McDonald's can
expand their business in different countries and can earn more profit. Therefore, increasing
globalization activity has changed the global competitive dynamics in the various industries.

This new changes in the global marketplace call for fundamentally different vision and strategic
thinking in all types of companies. The strategy of glocalization is becoming more and more
important in all types of businesses sector in recent years and appear to received wide
acceptance. Also, the change in glocalisation strategy can help consumers of host county relates
with character in much better and effective way. Thus, by this process McDonald's can hire new
employee from different country and this will help host country people to generate income as
well. The advantage of glocalisation is that company offers good quality of product to the
customers. Therefore, specified goods can convey hundreds of options with different prices.
Thus, product quality has been increased as to hold the customers (Olise, Okoli and Ekeke,
2015). Low and poor quality of commodity can affect customers satisfaction. One of the benefit
that glocalisation can give is cheaper price of the products selected. The manufacturer can
continue only when the product is competitively priced. Therefore, by keeping price of the goods
affordable McDonald's can provide great benefit to customers. Communication plays a very
importance role in every business activity and this can help organisation to promote their product
RESEARCH QUESTIONS
Research question help in an answerable inquiry into a specific concern or issue. It is the
first step in a research project. Initial step means after having an idea of different question and
finding their solution through secondary date. Therefore, the question of which answer was not
give through this process they can find solution of it. There, concept of globalisation and
localisation was found but important of it was not show. Through primary date they can find
answer to those question. This will help organisation to fulfil the gap between they problem
The research questions is as follows :-
 What are the concept of globalisation and localisation
 What are the strategies that are followed by business to expand in different market.
 What challenges are faced by business while expansion
 how impact of globalisation can be minimised on business operations
PROPOSED METHOD
Research should be conducted in effective manner by determining the various methods
that will be applied by researcher. Research methodology is a blueprint of research that shows

how research will be conducted. Also, it assists researcher to follow a specific process so that
research is conducted in a systematic manner. The methods are described as below :-
Research strategy
Research Strategy is a step-by-step plan of action that gives direction to thoughts and
efforts. That enabling to conduct research systematically and on program of produce quality
results and detailed reporting. There are mainly two types of research strategics qualitative and
quantitative (Inglis and Gimlin, 2015). Qualitative strategy states that the characteristics and
seeks to understand the given research problems or topic from the view of local population it
involves. On the other hand quantitative research strategy is the systematic empirical
investigation of observable phenomena via statistical, mathematical or computational techniques.
This data is in numerical form such as statistics, percentages. For this research qualitative
strategy is more suitable as in this they aim at a qualitative research project with the disciplinary
background, such as a psychologist seeking in-depth understanding of human behaviour and this
is more useful strategy as compare to other. This help the organisation to overcome their
problems and have them in bring innovation.
Research design
The research design is the overall framework that consists of every element that has
applied in research. It helps in providing a brief overview of how research will be conducted. In
this many designs that are conclusive, exploratory, descriptive, etc. it depends on researcher
willingness on which design will be used by him or her. Exploratory is used to analyse in depth
about the topic. With this more knowledge is gained. Conclusive is applied for getting final
conclusion from research and descriptive helps in determining issues. For present study,
researcher will apply exploratory design (Lawrence and Almas, 2018). It will help in providing
more information on how globalisation as well as localisation has helped companies to expand
operations in different countries. Furthermore, which concept is preferred by companies to for
growth and development. On basis of information, aims and objectives can be ascertained in
effectively. It also helps to attain work performances that help to make conclusion in systematic
manner.

Access issue
The research will be conducted in offices of different companies. For this permission will
be taken from concerned authority. Along with this, a member of top level management will be
involved to gain access of conducting research.
Proposed work plan
Activities Week 1 Week
2
Week
3
Week
4
Week
5
Week
6
Week 7 Week
8
Week
9
Week
10
Week
11
Defining
research
proposal
Defining
background
or rationale
for study
Determinin
g aims and
objectives
Analysing
secondary
data
Designing
the
questionnai
re
Collecting
and
gathering
primary

data
Analysing
and
interpreting
the data
Presenting
the data
Conclusion
and
Recommen
dations
Final
Submission
Ethical consideration
Every research is conducted by following some rules and regulations. This ensures the
user that research is conducted in ethical manner. For present research there are some rules that
will be followed by researcher. First is privacy of data and information will be maintained. It
means confidential data of business will not be shared. Second is managers of companies will be
treated with respect and dignity (van Hees, Thaler-Kall and Schulz, 2016).
Research limitations
They are the barriers that can occur in while conducting research. It will affect the
outcomes thus, aims and objectives will be not be achieved in proper way. The limitation are
described below :-
 Sample size – they are the most important element in research. It is because overall
results are based on this. If researcher is unable to select inappropriate or small sample
size then it will affect the results (Žikić, 2016).

 Time- Research may take some more time to get completed. Thus, in order to attain aims
data analysation may be done in improper way. It will affect the overall research
outcomes. Also, it will affect performance of researcher.
 Money- As time increases, it will also lead to rise in cost. The researcher will require
more funds to complete research in effective way.
Proposed data handling and analysis
It refers to storing and managing data. Researcher should determine the way in which he
or she will store data so that integrity is maintained. The data will be collected by questionnaire
and stored in systems. The encoding of data will be done by ensuring that tools used are
authentic. It will help in interpreting it accurately so that effective results are generated (Ross,
Rogers and Duff, 2016).
CONCLUSION AND RECOMMENDATIONS
Conclusion
From the dissertation it can be summarised that due to globalisation business is able to
expand operations in different countries. It has enabled them to enter in new markets and provide
products to people to fulfil their needs. Before entering in new markets companies has identified
the market condition and taste and preference of people. This has allowed them to develop
strategies to promote their products and services. Apart from globalisation, another trend has
emerged in recent times that has allowed business to change their concept. That trend is known
as localisation. With this business is able to compete with local companies. Moreover,
globalisation has created both negative and positive impact on market. It has lead to increase in
competition in markets due to which small and medium size business are finding it difficult to
sustain and grow.
It is also concluded from dissertation that big companies prefer to globalisation over
localisation. It is because they are already having a good brand name and market value. So they
just focus on target customer in the market. It has helped them to establish themselves as a
successful enterprise. With this they have developed a strong customer base by attracting them.
This has resulted in generating more sales and revenues. Big companies are growing rapidly due
to globalisation. By developing variety of products they have retained their customers. But some
companies prefer to use concept of localisation in which they focus on developing products