Lesson 7 - Glocal Branding

Question 1

What does the term ‘glocalisation’ mean?

Answer 1

The strategy of adapting global products to local tastes and customs in order to benefit local markets whilst being distributed on a global level.

Question 2

What benefits would TNC’s gain from glocalising?

Answer 2

1. They would attract a wider range of customers by offering products that are relevant to them.
2. Global expansion of the TNC (maintain global image.)
3. Develop political relationships and trade links e.g. with trade blocs, ease of transport.
4. Gain larger market shares (minimum labour costs = maximum profit for TNC’s) and thus, push other competitors out.
5. Good reputation

Question 3

How does Jebel Ali FEZ (Free Economic Zone) attract TNC’s?

Answer 3

The FEZ offers incentives e.g. grants, cheap labour and ease of imports and exports due to it being located on a coastal region; it is also an area where TNC’s can invest in with limited/no taxes.

Question 4

Why is the Quatari Government an important consideration when deciding how to glocalise products for the UAE?

Answer 4

They Quatari government would decide what products would be appropriate to be sold/shown within the country according to its customs/traditions/laws, for example, Geordie Shore would not be shown on MTV as it may cause offence as it disagrees with local culture.

The Quatari government essentially control whether the product will come into the country or not (according to its suitability.)

Question 5

Why is image so essential for glocal branding?

Answer 5

It must promote the global brand of the TNC in a positive manner in order to establish a good reputation; it must be relevant to the local market it is expanding in e.g. the packaging, marketing and designs of products must appeal to its customers in that country.

Question 6

How do TNC’s effect the environment on a country it may be manufacturing in, for example?

Answer 6

• Travel: air-miles, carbon dioxide emissions
• Ecological carbon footprint: grows in size due to pollution from transportation methods
• Toxic waste
• Destroyed/taking up space: brownfield sites (factories)
• Less environmental regulation: more pollution, toxicity, disrupted wildlife