N22 [12] Glocalization important strategy for TNCs

Question 1

Intro 1

Answer 1

Glocalization refers to the process of adopting global products, services, and local markets.

Overtime, this has become a vital strategy for TNCs as it enhances customer satisfaction and strengthens brand loyalty.

Question 2

Intro 2

Answer 2

This essay will analyse the reasons behind the increasing importance of glocalization.

These reasons include local adaption to consumer preferences, cultural sensitivities, and compliance with local regulations.

Question 3

Consumer preferences

Point, evidence

Answer 3

One primary reason glocalization has become essential for TNCs is the need to adapt products and services to local consumer preferences.

Coca-cola has successfully tailored its beverages to meet the tastes of different markets.

For instance, the company offers unique flavours in Japan like green tea and peach, resonating with local consumers.

Question 4

Consumer preferences

Explanation

Answer 4

This adaptation is crucial as consumer preferences can vary widely across regions due to cultural, economic and social factors.

By localising their products, TNCs can enhance customer satisfaction and loyalty, leading to increased sales and making glocalisation a very important strategy for TNCs to utilise.

In an LIC like Malawi, TNCs are unable to glocalise products due to the country’s high levels of poverty and limited consumer spending capacity.

Question 5

Cultural sensitivities

Point, evidence

Answer 5

Another reason for the rise of glocalization is the necessity to tailor products based on cultural sensitivities to avoid a decrease in sales.

A prominent example is McDonald’s, which has modified its menu in India to accommodate cultural dietary restrictions.

The fast-food giant offers the ‘McAloo Tikki’ burger, a vegetarian option that aligns with the dietary practices of a significant portion of India’s population.

Question 6

Cultural sensitivities

Explanation

Answer 6

This is crucial in an increasingly interconnected world where cultural differences are more visible and any insensitivities can quickly spread through social media and damage a brand’s reputation.

Glocalization allows TNCs to tailor their products to local preferences, fostering a loyal customer base.

In an LIC like Afghanistan, TNCs will find it difficult to glocalise due to more cultural sensitivities and smaller consumer base.

Question 7

Adaption of shows

Point, evidence

Answer 7

Netflix has adapted various shows into their own to localise content for different markets whilst maintaining the core elements of the original show.

This is evident by the remake of the popular Spanish series “Money Heist,” which has been adapted into a Korean version, “Money Heist: Korea - Joint Economic Area.”

The series depicts a hostage crisis situation at the Korea Unified Mint, where a group of thieves attempt a heist to steal 4 trillion won in newly printed unified currency

Question 8

Adaption of shows

Explanation

Answer 8

By transferring the narrative to a Korean context, the creators have successfully adapted the original story to resonate with local audiences while introducing unique elements that reflect Korean culture and history.

The setting of a unified Korea and the incorporation of traditional Korean face masks into the visual style are examples of how the series has been tailored to appeal to Korean viewers.

This localisation strategy allows Netflix to maintain the global appeal of the “Money Heist” franchise while offering a fresh perspective that caters to the preferences of Korean audiences.

While Netflix has successfully localized content in various regions, it may find it less appealing to invest in adaptations for LICs like Malawi or Mozambique, where the audience size is smaller and the potential return on investment is limited