Globalization and localization

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Globalization and localization. 12 examples.

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  • 1. Globalization and localization12 examplesSource: http://www.pixelio.de/details.php?image_id=130909&mode=search

2. Example # 1 3. For the food industry, where cultural sensitivities and local tastes are very important, its absolutely imperative that we delegate substantial authority to local management.Helmut MaucherSource:Interview with John Quelch.http://www.strategy-business.com/article/19753?pg=all 4. In Brazil, Nestl engages rural women to operate asdistributors. They travel door-to-door demonstratingproduct benefits and selling directly to consumers.By creating incentives for local retail entrepreneursrather than hiring salaried employees or franchiseholders, the company reduces its need to monitorindividual sales performance.Sourcehttp://www.bcg.com/impact_expertise/publications/files/Next_Billions_Business_Strategies_Enhance_Food_Value_Chains_Jan_2009.pdf 5. Worldwide, Nestle employs approximate 5000people in 24 R&D centers and over 250 applicationgroups.It extends its reach by tapping into the technologiesand expertise of more than 1 million researchersaround the world.Source: http://itssaulconnected.com/archives/2009/05/law-of-large-numbers/ 6. Since World War II, Nestls milk has by and large been produced by thousands of small farmers in developing countries. And their supply chain efforts have gone way beyond just sourcing.Source:V. Kasturi Rangan, Harvard Business School.From the article Business and the Global Poor by Sean Silverthorne.Harvard Business School Working Knowledge, Feb. 5, 2007.http://hbswk.hbs.edu/item/5529.html 7. Nestl has provided the technology, training, andsupply-chain investments to make it possible forthe small farmer to produce good-quality milk,transport it, and sell it to the company.Source:V. Kasturi Rangan, Harvard Business School.From the article Business and the Global Poor by Sean Silverthorne.Harvard Business School Working Knowledge, Feb. 5, 2007.http://hbswk.hbs.edu/item/5529.html 8. For excellence today, a bottom-up approach appears to be more effective in both formulating and implementing customer-satisfaction strategies. At Nestl, for example, it is local country managers and their subordinate product and segment managers who regularly make such today-for-today decisions, not corporate headquarters management.Source: Abell, Derek F.: Competing Today While Preparing for Tomorrow, p. 78-79. 9. Example # 2 10. Unilever trained 25,000 Indian village women to distribute a laundry detergent door-to-door, reaching 80,000 villages and gaining $250 million in annual revenue.Source: http://www.booz.com/media/uploads/Roasted_or_Fried.pdf 11. In 2003, Unilever added rural sales reps (called boreholers) to distribute products to remote villages with rotational markets (market days) that are difficult to put into coverage plans.Source:Mahajan, Vijay: Africa Rising, p. 90. 12. In Nigeria, where 3.5 million babies are born everyyear, Unilever distributes a million free samples ofproducts such as Pears baby lotion to mothers inmaternity clinics and hospitals.The company has worked with the nurses andmidwives association to educate mothers aboutbaby care.Source:Mahajan, Vijay: Africa Rising, p. 135. 13. Example # 3 14. P&G cut the price of Crest toothpaste more than 50% in China by reducing the cost of packaging, which is less important to consumers than being able to choose from a variety of flavors.Sourcehttps://www.mckinseyquarterly.com/Think_regionally_act_locally_Four_steps_to_reaching_the_Asian_consumer_2436 15. Example # 4 16. In Morocco, The Coca-Cola Company sponsored its own university, teaching shopkeepers how to use Excel spreadsheets and training salespeople.Sources:Mahajan, Vijay: Africa Rising, p. 102. 17. The World Wildlife Fund (WWF) works with Coca-Cola, which operates 39 bottling plants in China, toimprove the water quality of the upper reaches of theYangtze river, which provides China with 35% of itsfresh water and is the longest river in Asia.For example, WWF and Coca-Cola work with ruralfarmers to reduce the runoff of animal waste into theriver by turning pig waste into biogas, a type of fuelthat can be used for cooking and heating.Source: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2568, August 18, 2010. 18. One innovation that came out of India is the solar-powered coolers. Were looking to expand that to othermarkets. Theres great engineering talent in India.Another product that shows promise is Minute MaidsPulpy, an orange juice with pulp that did extremely wellin China. We expanded it into many countries.Source:Interview with Mr. Ahmet C. Bozer.http://www.strategy-business.com/article/00093?pg=all 19. Example # 5 20. For Coartem [antimalarial drug], Novartis has createdextensive educational materials and blister packs withillustrations to encourage proper use of the drugs.The company has even created comic books indifferent languages for children to raise awareness ofmalaria and discuss its prevention and treatment.Source: Mahajan, Vijay: Africa Rising, page 93. 21. Well have automatic translation.SourceA conversation with Eric Schmidt, CEO of Google. Charlie Rose, March 6, 2009.http://www.charlierose.com/view/interview/10131 22. Example # 6 23. Designed in emerging markets Sold inSold inemergingmature marketsmarkets Designed in mature markets Source http://www.business-strategy-innovation.com/wordpress/2010/06/what-comes-after-reverse-innovation/ 24. Source: https://www.myc4.com/ 25. Dennis Mwangi Gachoki in Kenya no longer irrigatesusing a bucket. With a loan of 3500, he invested in awater pump, water hoses and fertilizer, which meanshe increased his yield and quality of its productionSources:http://www.facebook.com/photo.php?fbid=121241324572692&set=a.121241321239359.15968.120902984606526https://www.myc4.com/Invest/Businesses/View/6075 26. Source: http://www.coop.dk/upload/modul/coop/Coops_ansvarstiltag/index.htm 27. Source: http://afrika.fdb.dk/forside-farmerne 28. Example # 7 29. When BP sought to market a duel-fuel portable stove in India, it set up one such co-creation system with 3 Indian NGOs.SourceBrugman, Jeb & Prahalad, C.K.: Cocreating Businesss New Social Compact.February 1, 2007. Harvard Business Online. 30. The system allowed BP to bring the innovative stove to a geographically dispersed market through myriad local distributors without incurring distribution costs so high that the product would become unaffordable.SourceBrugman, Jeb & Prahalad, C.K.: Cocreating Businesss New Social Compact.February 1, 2007. Harvard Business Online. 31. The company sold its stoves profitably, the NGOsgained access to a lucrative revenue stream thatcould fund other projects, and consumers gotmore than the ability to sit down to a hot meal -they got the opportunity to earn incomes as thelocal distributors and thus to gain economic andsocial influence.SourceBrugman, Jeb & Prahalad, C.K.: Cocreating Businesss New Social Compact.February 1, 2007. Harvard Business Online. 32. Example # 8 33. Create entry-level goods for emerging markets and then quickly and cheaply repackage them for sale in rich nations, where customers are increasingly hungry for bargains. The term for this new approach is trickle-up innovation.SourceInnovation trickles in a new direction.http://www.businessweek.com/magazine/content/09_12/b4124038287365.htm 34. Sourceshttp://www.youtube.com/watch?v=8BvPUcZpGK8http://www.vijaygovindarajan.com/2009/09/reverse_innovation_how_ge_is_d.htm 35. Example # 9 36. McDonalds serves vegetarian burgersin India and spicy ones in Mexico.Source:http://www.economist.com/node/18584204 37. In crowded cities, delivery is essential for businessesfrom fast food to groceries. The streets are congested,and parking is unavailable. Home delivery hasemerged as the most important channel for sales.McDonalds and other fast-food restaurants carrymeals through traffic in Cairo on delivery scooters.Delivery accounts for 27% of McDonalds sales inEgypt, and as much as 80% for some rivals.Source:Mahajan, Vijay: Africa Rising, p. 90. 38. McDonalds serves vegetarian burgers in India and spicy ones in Mexico.Source:http://www.economist.com/blogs/whichmba%3F/2011/09/pankaj-ghemawat?fsrc=scn/tw/te/bl/promisingtheworld 39. Example # 10 40. GlaxoSmithKline has enlisted midwives to distributespecialized vaccines to infants in the Philippines.Sourcehttps://www.mckinseyquarterly.com/Telecommunications/Strategy_Analysis/Capturing_the_promise_of_mobile_banking_in_emerging_markets_2539 41. Example # 11 42. The secret to the success KFC in China can betraced to its use of local ingredients - both in itsmanagement team and on its menus.Sourceshttp://www.bloomberg.com/news/2011-01-26/mcdonald-s-no-match-for-kfc-in-china-where-colonel-sanders-rules-fast-food.htmlhttp://resources.alibaba.com/topic/531563/KFC_s_localization_strategy_in_China_.htmhttps://www.mckinseyquarterly.com/Think_regionally_act_locally_Four_steps_to_reaching_the_Asian_consumer_2436 43. We customize our international flavors to suit localpreferences, and 20% of our overall menu is localized.World over, the toppings at Pizza Hut are mainly beefand pepperoni.But in India, where up to 60% of the people areestimated to be vegetarian, we have more variety invegetarian toppings.Anup Jain,Pizza Hut India.Source: http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4358 44. Example # 12 45. LG invested heavily in local R&D and staffed itsoperations with thousands of top-notch Indiandesigners and engineers.LGs product innovation center in Bangalore is thecompanys largest outside South Korea.Sourcehttps://www.mckinseyquarterly.com/Think_regionally_act_locally_Four_steps_to_reaching_the_Asian_consumer_2436 46. Noting, for example, that many Indians use their TVs to listen to music, LG introduced new models with better speakers and, to keep prices competitive, less costly displays.Sourcehttps://www.mckinseyquarter