Question

Today and in the future, do you think it is important for a firm to think globally but act locally? Why? Give some examples of companies and their actions in this regard.

class is -principles of marketing class

Answer 1

The phrase "Think globally but act locally" depicts relationship between marketing and culture. In marketing, it is strategy used by MNC's for localising their offerings (goods and services) to different geographical audiences (markets), while maintaining same global brand values.The concept is synonymous to term "Glocalisation". Today this concept is important for a firm because of following reasons :

• To pay attention to cultural differences among societies and tailor products as per their need. For example, Mcdonalds offer meat based burgers(Big Mac) in USA and UK, but vegetarian burgers (McAloo Burger) in India. Vegetarianism is local food culture of India.
• It attracts more customer by localising standard products.For example, Lays Chips (Mango salsa in the USA and Magic Masala in India are top seller).
• Increase in consumer loyalty to the product.For example, Gillette razors are used all over the world.
• By offering lower prices, domestic market can be captured easily and higher profits are earned by firms.

Many businesses contend unified global market strategy against glocal strategy due to cost, time ,resources and other considerations. But this might not work. Being Global is not solution as suggested by Disneyland's Paris and Hongkong experiment where company launched successful USA version in the respective countries and failed. The same is true for Wal-Mart's China experience. Thus, the phrase"Think globally but act locally" is as important for firms today as for future.

Additional examples of companies and their action :

1. Audi cars have greater ground clearance in India as compared to German model of same car due to different road and driving conditions in the both countries.
2. Subway Chain doesn't offer beef in the Indian stores but offers in the American stores.
3. MTV glocalised to UK, China, India etc.