discussion

Do you agree with Glocalization? And what way do you think companies will or not benefit from it?

Glocalization: Where Does It Come from and Where is It Today

Globalization is the process in which the world is interconnected in ways that people can communicate and conduct business internationally. The goal is to become a global culture where politics and economics are integrated. Globalization means businesses develop influence on an international scale. 

Glocalization is the permeation of the global and the local markets resulting in unique outcomes in different geographic areas (Dumbrava, G. (2016).  In other words, taking a product or service and distributing it globally while adjusting it to the local user. The product can be replicated but adjusted to attract the attention and interest of the local consumer. While offering local specialization of the product, the company remains recognized as the same brand.

In the "McDonalds Global Strategy" video, this concept is demonstrated by how McDonald's corporation has expanded its enterprise world-wide to different cultures with different values and appetites. Offering products that appeal to the local culture has enabled them to continue to grow and expand to global markets while maintaining the McDonalds brand name. McDonald's globalized it's business and glocalized its product. By doing so, McDonald's can offer appealing food choices to local cultures while keeping the McDonald's name as a recognizable trademark.

Starbucks Coffee was founded in 1971 and by 2003 was expanding globally. Starbuck's extensive menu enables it to adapt to the demands of any culture to make it a successful globalized company. Starbucks relies on the iconic brand and logo as the image and emotion that is connected to coffee. The atmosphere in every Starbucks cafe is also important in the brand's identity.

While McDonald's adapts to different cultures by flexing the menu, Starbucks expands the menu to offer multiple options that will appeal to all customers no matter their culture. Both companies have found success in the global expansion of their business using different tactics.