Glocal Strategy of Global Brands †Free Samples to Students

Question: Discuss about the Glocal Strategy of Global Brands. Answer: Introduction: Globalization is an emerging modern business trend which involves an all-inclusive global movement towards social, financial, communication and trading integration. The term globalization is more often used to refer to opportunities for opening up to both local and to national perspectives thus leading to the creation of globalized markets. Globalized markets emerge from products and services uniformity. Majority of bigger companies have adapted to markets globalization strategy by providing globally accepted standardized products which are reliable, functional and advanced; these products are offered at a lower. It is, therefore, the responsibility of companies to exploit economic simplicity that operates in the entire world while at the same time maintaining quality and reliability with an intent of maintaining reasonable reliability standards that will attract customers interest to organization products (Levitt, 1983). Nevertheless, the view and application of globalization strate gies have over the years changed as the pioneers of globalization strategies such as Levitt failed to explicitly discuss the branding concept (Holt et al. 2014). The contemporary business world demands local sensitivity, flexibility, and responsiveness to customers needs which faces difficult decisions as it is aimed at maximization, standardization, and integration of business activities across the world. Business markets have thus narrowed down from globalization to localization with an intent of adopting marketplace local conditions and circumstances in ensuring successful marketing. Localization refers to the adjustments of products functional characteristics and properties to fit the legal, political, social, economic and cultural differences that exist within a nation or a foreign market (Dumitrescu Vinerean, 2010).Localization favors and promotes successful marketing activities within the marketplace thus rendering global market strategies not ideal as they do not focus on meeting customers' needs and brands. Localization understands customer's desires environment and dynamics and promotes complete customer satisfaction in most circumstances. Local markets find it easy to create marketing and advertising programs targeted to communicate to particular groups of people within the locality given their knowledge of customer preferences. Even so, localization is not the right approach to entrepreneurs who wish to expand their business beyond their localities. This is because localization focuses on localized products and message which may not be adopted by custom ers of other foreign nations due to differences in culture, legal and political policies and the economic state of the given country. Organizations that oblige to succeed in their business locally and internationally need to adopt a combination or a mix of both global and local strategy to meet the needs of their customers despite the existent cultural differences. Despite the local conditions and requirements of customers needs, entrepreneurs product and service provision need to be standardized, advanced and of high quality. This means that entrepreneurs will have to provide global products to customers at a subsidized level. Entrepreneurs, therefore, need to think globally and act locally to maintain high-level market standard at a multinational level. The process of thinking globally and acting locally is known as glocalization strategy (Kotler, 2009) Glocalization strategy naturally absorbs the culture of other stronger cultures and influences its natural fit into such cultures (Rosa Orey, 2016). Glocalization strategy sets certain marketing elements at a standardized level and a local level. Glocal marketing concept identifies the relevance of pure marketing strategy while at the same time giving recognition problems associated with local marketing activities. Glocalization strategy requires marketing managers to act differently in the local businesses, strategically at the global level while maintaining the focus of local customer's differences. Glocalization, therefore, seems to create balance maintenance in the assimilation of foreign influences into the society thus adding up societal diversity into marketing without overwhelming the marketing standards (Kaynack Herbig, 2014). In conclusion, Glocalization is the way forward. This is because glocalization utilizes global brand names with a target of alluring local markets, unlike globalization and localization which focuses on fulfilling customers' preferences and income across targeted countries. Secondly, glocalization operates in both global and local market thus making it a better strategy than localization and globalization which works within specific and mass demands respectively. Thirdly glocalization, does not only focus on offering quality to clients but at the same time focuses on advancing a product value in higher quantities; global and local products also maintain product quality but limit product focus at international and local levels. Finally, globalization strategy stands a risk of falling trade costs in highly globalized markets. Localization, on the other hand, creates a separation of local markets under high costs. Glocalization is the solution to all these problems as it tends to stand and face competition both at local and international brands as it meets locals needs at lower costs. References Dumitrescu, L., Vinerean, S. (2010). The glocal strategy of global brands.Studies in Business and Economics,5(3), 147-155. Holt, D.B., Quelch, J.A., Taylor, E.L., (2004), How Global Brands Compete, Boston: Harvard Business Review, September Issue Kaynak, E., Herbig, P. (2014).Handbook of cross-cultural marketing. Routledge. Kotler, Ph. Et al., (2009), Marketing Management European Edition. Harlow, England: Pearson Prentice Hall Publishing, pp. 467 468 Levitt, Th., (1983), The Globalization of Markets, Boston: Harvard Business Review Rosa, M., Orey, D. C. (2016). ETHNOMODELLING: Exploring Glocalization In The Contexts Of Local (EMIC) And Global (ETIC) Knowledges.International Journal for Research in Mathematics Education,6(1), 196-218.