# Understanding Glocalization: Global Reach, Local Adaptation

![Glocalization: A product or service that is developed and distributed globally but also adjusted to accommodate consumers in a local market.](https://www.investopedia.com/thmb/danly6V29mC-fvr0jOHU2df9bmM=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/glocalization.asp-final-28e405cacc874210898f5d800492ae61.png)

*— Investopedia / Zoe Hansen*

## What Is Glocalization?

Glocalization merges globalization and localization, allowing products and services to be tailored to local markets while maintaining a global presence. This strategy adapts global offerings to meet local regulations, cultural preferences, and consumer needs, making them more appealing to diverse audiences across different regions.

A common example would be cars that are sold worldwide but adjusted to meet local criteria, such as emissions standards or what side the steering wheel is located. It could also focus on more cultural aspects, such as a global fast-food chain offering geographically specific menu items that cater to local tastes.

Glocalization often includes culturally targeted media and [ads](https://www.investopedia.com/articles/insurance/020117/look-geicos-marketing-strategy.asp) to help local audiences accept foreign products.

### Key Takeaways

*   Glocalization combines globalization and localization by adapting global products to local markets to cater to specific consumer preferences.  
    
*   Companies engaging in glocalization use culturally tailored media and ad campaigns to better integrate their products into diverse local markets.  
    
*   While often costly, glocalization can expand market reach and enhance competitiveness, but it may also pose risks of cultural appropriation.  
    
*   Glocalization can lead to increased competition and lower prices but can also harm smaller local businesses when dominated by large multinational corporations.  
    

## How Glocalization Works in Practice

Glocalization is the adaptation of global and international products into the local contexts they're used and sold in. The term was coined in the Harvard Business Review, in 1980, by sociologist Roland Robertson, who wrote that glocalization meant "the simultaneity—the co-presence—of both universalizing and particularizing tendencies."

 It involves adapting globally marketed products or services to fit local markets. Global products or services are tailored to meet local laws, customs, or consumer tastes.

 "Glocalized" products naturally appeal more to local end users. This is because, while it's something that everyone can use and has use for as a global product, its localization makes it more specific to an individual, their context, and their needs.

> **Important**
>
> While glocalization helps customize an international corporation's products to a particular culture or geography, companies must also pay attention to the risk of perceived cultural appropriation.

## Challenges and Considerations in Glocalization

Glocalization suits companies with [decentralized authority](https://www.investopedia.com/articles/forex/042015/why-governments-are-afraid-bitcoin.asp) and those competing in various cultural contexts. Though costly and resource-heavy, this process often benefits companies that use it. It also makes those companies more effective competitors in those markets.

While globalization leads to cultural sameness, glocalization and [multicultural organizations](https://www.investopedia.com/terms/m/multicultural-organization.asp) counter that trend. Glocalization can be thought of as the opposite, or the inverse, of Americanization (sometimes called McDonaldization), too, which is the influence that American culture and business have on another country's culture.   

## What Is Meant by Glocalization?

Glocalization is when an international corporation modifies some of its offerings in order to accommodate local consumer tastes or preferences. It is a portmanteau of the words "globalization" and "localization."

## What Are Some Examples of Glocalization?

Glocalization comes in many forms. For instance, in the U.K., car producers must build vehicles with the steering wheel on the right side instead of the left. Food items are also changed in different countries to fit local tastes. McDonald's Corporation ([MCD](https://www.investopedia.com/markets/quote?tvwidgetsymbol=mcd)) and other fast-food chains will often serve up versions of local fare along with the core menu of hamburgers and chicken products. Brand image and marketing campaigns are also carried out in local languages and with local customs and cultural cues in mind.

## What Is the Difference Between Globalization and Glocalization?

Globalization is the spread of products, ideas, and capital across international borders by corporations. One criticism of globalization is that it can result in the homogenization of cultures and consumers around the world. Glocalization pays attention to local practices, customs, and culture to have these products better fit regional wants and needs.

## The Bottom Line

Glocalization enables multinational corporations to effectively adapt their products for local markets, enhancing competitiveness and potentially lowering prices. However, these adaptations can pose challenges for smaller local businesses due to the economies of scale enjoyed by larger firms.

While this strategy broadens market access and meets local preferences, it can inadvertently reduce competition, potentially impacting prices over time. Careful consideration of the cultural nuances and the economic landscape is essential for businesses engaging in glocalization to avoid cultural missteps and economic disparity.  

> **Article Sources**
>
> 1.  Victor Roudometof. "Glocalization: A critical introduction." Routledge, 2016.
>     
> 2.  Eat This, Not That! "[35 International McDonald's Menu Items](https://www.eatthis.com/mcdonalds-food-around-the-world/)."