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Glocalisation SAT report GPE2016

Technical Report · September 2017

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 Sustainability
Approaches and
Tools

Glocalisation

Patil, Prathamesh, 386856

Waradpande Ajinkya, 387900
GPE NET Batch 2016
Lecturer: Dr. Elisabeth Strecker

1st September 2017

Contents
Introduction ............................................................................................................................................ 2
Globalisation ........................................................................................................................................... 2
The benefits of globalisation are: ....................................................................................................... 3
The disadvantages of globalisation ..................................................................................................... 3
Examples of Globalisation:.................................................................................................................. 4
Localisation: ............................................................................................................................................ 5
The benefits of localisation are:.......................................................................................................... 5
The disadvantages of localisation are: ................................................................................................ 5
Examples of localisation:..................................................................................................................... 5
Glocalisation............................................................................................................................................ 7
Glocalisation as a two-level System: ................................................................................................... 7
McDonald Example: ........................................................................................................................ 7
Vodafone Example: ......................................................................................................................... 8
Glocalisation as a three level System:................................................................................................. 8
McDonald Example: ........................................................................................................................ 8
Telecommunication Companies in India:........................................................................................ 8
Advantages of Glocalisation: .............................................................................................................. 8
Proposed Examples: .......................................................................................................................... 10
Mitticool ........................................................................................................................................ 10
Nuru Energy .................................................................................................................................. 11
Ulta Chaata (Inverted Umbrella) ................................................................................................... 11
Bakery’s Foods Pvt Ltd. ................................................................................................................. 12
Los Grobo ...................................................................................................................................... 13
Conclusion: ............................................................................................................................................ 14
References: ........................................................................................................................................... 15

Table of Figures
Figure 1:Blackbox Nature: Rubik’s Cube of Ecology’ .............................................................................. 2
Figure 2-Coca-cola Products ................................................................................................................... 4
Figure 3: Modern day Food Markets ...................................................................................................... 4
Figure 4: KFC Menu in China ................................................................................................................... 6
Figure 5: Samsun 3D TV in Exibition ....................................................................................................... 6
Figure 6 Technology matrix..................................................................................................................... 7
Figure 7: Chicken Mac Maharaja ............................................................................................................ 7
Figure 8 : Glocal Marketing Conceptualisation ....................................................................................... 9
Figure 9 : Sustainability Attributes .......................................................................................................... 9
Figure 10 : Mitticool .............................................................................................................................. 10
Figure 11 : Nuru Energy Power Cycle .................................................................................................... 11
Figure 12: Ulta Chaata Mechanism ....................................................................................................... 12
Figure 13 : Bakeys Edible Cutlery .......................................................................................................... 12
Figure 14 : LOS GROBO Group Logo...................................................................................................... 13

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Introduction
It is a simultaneous occurrence of universalising and particularising tendencies in
contemporary social, Political and economic systems.[7] Roots of this term can be traced to
‘Dochakuka’ a Japanese term which means global localisation. Initially it was referred for
Modern farming techniques, which are adopted according to suitability of local conditions.
Soon it gained popularity as Japanese businesses adopted this strategy in early 1980s.
The word Glocal came from Mr. Manfred Lange, head of German National Global Change
Secretariat who used ‘Glocal’ about Mr. Heiner Benking’s exhibit: ‘Blackbox Nature: Rubik’s
Cube of Ecology’ at an international science and policy conference. A sociologist Roland
Robertson is the one who used this term first in English.

http://benking.de/education.htm

Figure 1:Blackbox Nature: Rubik’s Cube of Ecology’

Before diving deep into the topic of, ‘Glocalisation’ and its examples, we need to first
understand globalisation and localisation perceived from pre-glocalisation point of view. As
‘Glocalisation’ term is a linguistic hybrid of, ‘Globalisation’ and ‘Localisation’.[7]
Understanding the approach of Globalisation and Localisation in this way will further help to
comprehend need of a better alternative or improved approach ‘Glocalisation’ to sustain
the growth and adaption of best practices.

Globalisation
The term suggests itself; it is operations on global scale. Globalisation is providing service or
product to a global customer/consumer. The term globalisation can be applied to various
sectors, right from international trade policies to international businesses; but our area of
interest is product/services and operations. The companies create product/services with a
focus on global needs of a consumer and thus plan operations accordingly. With a broader
outlook and international perspective, globalisation champions the needs of current global
trends and demands.
Internationalization and increased interdependence, has given a boost to globalisation. No
country is self-reliant and concepts from country cross to another creating attractiveness
about it. One may say that this has created an inclination towards western world, as being
capitalist nations, the businesses in their country have spurred. This has led them to cross
the oceans and expand their operations of products/services to other countries. This has
thus led to increase in demand; leading to a circle of supply and demand. One may even go
far to an extent to say that globalisation has moulded the society according to the product
and services being offered.

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If we study briefly and understand why globalisation has come to be such a popular
phenomenon then we find that following are the causes.
o Improved transport and logistics. It has become possible to reach all corners of the
world and improved transportation has made it possible to do so in less time.
Logistics has become another arm of business development and thus making it
possible to carry loads from one end to another.
o Improved technology. Technological developments have made it possible to share
information freely and rapidly. Information and communication technology has
brought world closer and thus making it possible to deliver services at long distances.
o Rise of multinational companies, thus operating in different economies at the same
time
o Growth of global media
o Financial systems becoming global in nature day by day thus make it possible to do
international transactions easily.
o Increased mobility of labour and development of skilled labour in local places.

The benefits of globalisation are:

o Achieving economies of scale. Mass production and delivering the products
worldwide with a common demand leads to increase in profitability and less cost.
o Free trade. Specialised products exported to other region thus exchanging resources,
and creating an environment of free trade.
o Free movement of labours, thus giving way to migration and cheap labour.
o Increase in competition. There can be no monopoly of one enterprise or
organization, this leads to healthy competition.
o Increased investments. Globalisation enables to increase in investment both short
term and long term.

The disadvantages of globalisation

o Developing countries struggle. Technological advancement happens in developed
world thus giving them advantage over developing and under developed nation. This
leads to developing and under developed nation’s dependence on developed
nations.
o Developing world face the issue of repetitively producing primary products and this
leads to stunted economic growth. Primary product demand is low income and thus
economic growth is slow. This may also lead to fluctuation of prices.
o Multinational companies become threat to local companies and retailers. The best
example would be supermarket chains like Walmart; they pose threat to the local
shops and dealers.
o Migration, this has become a major issue of globalisation. The skilled labour force of
developing nations moving to developed nations, thus creating a void for developing
countries. The example of many Asians especially from India and China moving to
USA for better-paid jobs.

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Examples of Globalisation:
1) Coco Cola is one of the best examples of globalisation. The beverage invented in USA
has reached all the corners of the world, and is now a world famous drink. Every city
in the world serves Coco Cola and has its own kind of commercials to sell the drink.
This brand of beverage has reached people’s home and influenced their drinking
patterns. Therefore, Coco Cola is the best suited example of globalisation.

https://www.coca-colafemsa.com/index.html

Figure 2: Coca-Cola Products

2) Food, one of the relevant examples of globalisation would be food.

"The foods we consider local are results of a globalisation process that has been in
full swing for more than five centuries, ever since Columbus landed in the new
world. Suddenly all the continents were linked, mixing plants and animals that had
evolved separately since the breakup of the ancient super continent Pangaea." –
New York Time, August 29, 2011.
Tomato, Potato, Rice, Tea and Coffee are food examples for globalisation.

https://sites.google.com/sites/globalizationoffood1221/examples-of-globalization

Figure 3: Modern day Food Markets

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Localisation:
“Localisation is the adaption of a product or service to meet the needs of a particular
language, culture or desired population’s look and feel.” [6]
Localisation is simply fulfilling needs of local market with a local driven solution. Localisation
would therefore completely satisfy the demands of local people because its purpose is in it.
The inspiration of localisation is connectivity with the local culture.
Global products have their own attractiveness, but rustic and exotic demands can be
satisfied locally. Hence, the companies penetrating the local regions have to provide
products/services accordingly.

The benefits of localisation are:

o Increase the market share. Providing and adopting the product/service according the
local audience would increase the market share. Let us say you are providing a
software solution in English, but if we take this solution to the villages assuming in
Maharashtra, a state in India with local language Marathi. Your software solution will
sell more than those not providing in Marathi language thus increasing your market
share.
o Competitive Advantage, the above example would eventually give a competitive
advantage because now the product would be unique with local features.
o Improve your ranking, because now the targeted audience is wide.
o Avoid cultural taboos, localizing the product/service, will prevent creating any kind
of cultural conflict. Accurate information of culture and adapting the product that
way would definitely not create any culture taboos.
o Popularize brand globally; Localisation creates a brand image that how your
company’s product/services offer local adaptations thus eventually helping you to
globalise.

The disadvantages of localisation are:

o Scope of Employment gets restricted. Local made product/service will require
employment of local labours who would better understand the parameter, thus it
restricts the scope of employment.
o Mobility of labours gets restricted. This is obvious because there will be no cross
skilling.
o Social Problems: Localisation of industries creates many problems such as
congestion, emergence of slums, accidents, strikes etc.
o Regional imbalance; focus of industries in one region may create imbalance at the
top level thus creating a fiscal.

Examples of localisation:
1) KFC has modified its products in china with range of China Specific food options like
traditional Chinese breakfast breads, and a variety of rice – paired dishes; this
introduction of dishes increased popularity of KFC in China.

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 https://www.tutor2u.net/business/blog/why-localisation-is-important-for-success-in-china-yum-brands-and-the-rapid

Figure 4: KFC Menu in China

2) Samsung in French market; this is one of the well-suited example of Localisation.

Appealing to the local desire for artistic design; Samsung had hosted an art
exhibition displaying works of art in high definition on their 3D TV sets. Also,
Samsung adapted to the local demands of launching apps in their mobile phone.

http://www.ls-localise.com/portfolio/international-websites

Figure 5: Samsung 3D TV in Exibition

3) Airbnb- “Airbnb business model disrupted the hospitality and tourism industry with
homes and bedrooms in 34000 cities and 190 countries. Airbnb’s strong localisation
strategy has made it possible for users to associate a sense of freedom, trust and
security with the brand.”[14]

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Glocalisation
Glocalisation represents a challenge to simplistic concepts of Globalisation process as linear
expansions of territorial scales. Glocalisation shows that the growing significance of
continental and Global levels is simultaneously competed by the demand of importance to
local and regional level. In glocalisation tendencies toward homogeneity and centralization
emerge simultaneously with heterogeneity and decentralisation. It shows
interconnectedness of global and local level markets.

Low
Maximize world Balance global with
scale systems local concerns
GLOBAL
CONSISTANCY

Export domestically Encourage local

High produced products autonomy

Low LOCAL RESPONSIVENESS High

Figure 6 Technology matrix

Glocalisation as a two-level System:

Most of the times the two-level systems were followed for adopting strategy first global
product identify the market and then localisation is done for the market. Sometimes
Glocalisation can also approach as an indigenisation of the product or service. In Marketing
Context Products are created for global markets are adapted to local cultures to improve
acceptability of product in local market by customer.
McDonald Example:
McDonald is one of company who implemented this strategy so as to penetrate in foreign
markets.
o For France, they replaced familiar Ronald McDonald mascot with Asterix a popular
French Cartoon Character
o For Italy McDonald Italy and for Canada Mc-lobster were added to menu to suit the
local taste. Also, when McDonald came to India it made several changes in menu it
added Mac Maharaja a burger with chicken patty replacing beef burger.

http://mcdonalds.wikia.com/wiki/Chicken_Maharaja_Mac

Figure 7: Chicken Mac Maharaja

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Vodafone Example:
Vodafone introduced the M-Pesa financial service which helped to add additional dimension
to the telecommunication services provided by them in South Africa. Vodafone added a
facility of making the financial transactions with the help of cell phone by introducing M-
Pesa service. This allowed Vodafone to penetrate the telecommunication market as well
increased acceptability of brand.

Glocalisation as a three level System:

It is considered a three-level system when in addition to National level subnational level
market are considered while transiting from global level glocalisation can be seen as three
level system. Uniqueness of market with local conditions is considered.
McDonald Example:
Considering the vegetarian population of state of Gujarat in India they started with
vegetarian special stores. It also added some local special menus as per the regions culinary
preferences.
Telecommunication Companies in India:
Companies introduced a special price packages for data, SMS service and talk time
according to regional special festivals to get more subscribers.

Advantages of Glocalisation:
So, for global products to penetrate the local market glocalisation is needed because global
market is no more than combination of different local markets. Combining both approaches
have certain advantages, while designing product or services with this preconceived idea
and putting them in to market.
o In Glocalisation Universal benefits of global product and service can also be enjoyed
in local market.
o Glocalised product or service assimilates into the local culture environment and
market.
o It avoids a push of new wants and push for excessive cultural and homogeneity
while still making way for the global product.
o It allows the product and technology spread faster in more sustainable way as the
benefits of global technology is made available to various local markets.
o It also allows the adaption of local technology to global products and improving and
making them more relevant.
As we encounter various examples of Glocalisation in context of global services and
products are modified to suit local market; but with this report, we also want to point out
how Glocalisation bottom up approach is useful and can be employed to take particular
local products on global level and then to different local markets.

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 ©http://ppt-online.org/21558

Figure 8 : Glocal Marketing Conceptualisation

The report will present few services and products by trying to evaluate them on their
sustainability attributes. Then we try to propose glocalisation strategy for improving the
spread of these sustainable products and services in less time. These services and products
some of them already have some of glocalisation aspect in them.

©https://www.greenbiz.com/article/what-makes-sustainable-product-0

Figure 9 : Sustainability Attributes

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Proposed Examples:
Mitticool
It is a refrigerator made from clay works; without electricity cools the space using
evaporation of water through clay in warm regions. With this it can maintain the
temperatures inside the refrigerated area roughly about 5oC.
This innovation finds a market not just in India but also in other emerging markets and even
developed nations. For instance, while Inventor Prajapati sells it to Indian retailers such as
Big Bazaar, he says that the same products have also reached customers in London,
America, Singapore and Africa, thanks to the National Innovation Foundation (NIF).

©https://mitticool.com/showroom-gallery/
Figure 10 : Mitticool

Resource base: It’s made of Clay and glass for Indian domestic market, while Plastic and
stainless still components are used as per export market regulations for food storage
container regulations. This makes it resource light on environment.
Lifecycle Impact and benefits: During the lifecycle of product it saves a lot a significant quantity
of food from spoiling. Also, it has very low resource requirement for operation as the water
from inbuilt water cooler is used to refrigerate the space so no electricity or machine
maintenance is required.
Human and Ecological Toxicity: Since the Water and water vapour is used as a refrigerant it
reduces significant ecological foot print compared to CFC or ammonia based refrigerant
products.
Socio-Economic Impacts and Benefits: Due to use of cheaper more natural material to build
product it fits the social need of Gujrat state in India. Also in developing countries where
Refrigeration system is not available, due to infrastructure limitation now refrigeration can
be done without electricity.
Total Costs and lifecycle Costs: Total cost of this unit is cheaper and maintenance and running
cost is definitely lower than traditional refrigerator due to simple construction.
Technical performance fit for purpose: The refrigerated area is good enough to store vegetables
and fruits for two days. This is a good improvement from lack of refrigeration.

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What’s Next?
As we see the product has solved refrigeration issue for local market by having refrigeration
without CFC refrigerants and complex machinery. These are universal advantages of the
product. It is a perfect fit where refrigeration is needed but electricity is scares. It can also
be used in urban areas to reduce electricity consumption and have less capacity traditional
refrigerators so for urban market it needs to be smaller and lighter. While for rural area
market reach should be improved.
Nuru Energy
Nuru Energy was designed as an affordable lighting system to replace polluting and
expensive kerosene-based systems. The system allows customers to access up to 140 hours
of light, generated by a cycle-pedalled generator in 20 minutes.
Resource base: Uses basic Bicycle parts so it's
cheaper and less energy intensive raw material to
make this generator compared to solar or wind
power.
Lifecycle Impact and benefits: Since made from
Bicycle parts maintenance is pretty easy and don't
require continuous vigilance or cleaning to maintain
the ideal operating condition.
Human and Ecological Toxicity: Since it a dispatchable http://www.nuruenergy.org/
generator i.e. we can produce whenever we need Figure 11 : Nuru Energy Power Cycle
the energy which results in slightly smaller battery
sizes reduces problem of recycling for batteries and equipment used.

Socio-Economic Impacts and Benefits: Equipment can be used as an income generating

device so an investor can buy the equipment and sell generated electricity to the
neighbours. Also the shared ownership makes it attractive option for micro electrification
projects.
Total Costs and lifecycle Costs: Total cost and life cycle cost is still cheaper than solar and
wind.
Technical performance fit for purpose: Electricity on demand is available also the time to
generate requirement is much less.
What’s next?
This product was launched in Africa where it got foothold in some region. In future if
equipment can be built by local shops it will further help to localize the need it can be also
adopted in modern gym in urban areas where this technology can be used to light up
premises inside the gym. So, the Global solution for this product will also transcend.
Ulta Chaata (Inverted Umbrella)
The concept was developed to take measure on water conservation.
It is aimed at urban areas for example City like Mumbai suffers the problem of scarcity of
water while it also experiences heavy rainfall and water logging inside the urban city spaces
with no area for water to reach the ground water reservoir. Hence a start up in India
designed this product to take a step towards water conservation.

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The product is completely
sustainable and finds quite a
few applications.
Resource base: It uses Modern
Architectural material and glass
to keep the dirt away as much
as possible most of this material
is completely recyclable.
Lifecycle Impact and benefits: It
will reduce the water logging in https://yourstory.com/2016/07/ulta-chaata/
tropical cities public spaces after
heavy rain. Figure 12: Ulta Chaata Mechanism

Human and Ecological Toxicity: It will reduce the toxicity or pollution level in ground water
by sending comparatively clean water to be absorbed which otherwise directed towards
sewers.
Socio-Economic Impacts and Benefits: Having these structures in privately owned resorts or
public and commercial plaza gives additional business opportunity.
Total Costs and lifecycle Costs: Total cost of product is justified by amount of water it can
collect in the years of operation.
Technical performance fit for purpose: It has a nice elegant look and structure, doesn’t
interrupt with the surrounding while doing rainwater harvesting and energy generation.
What’s next?
The Product is designed considering global and metropolitan commercial district public
spaces. But Exterior of Ulta Chaata can be modified to go with local surrounding settings for
children’s park of simply jogging tracks. This will have an additional appeal to the product to
contextualise with space where it is going to be installed.

Bakey’s Foods Pvt Ltd.

A start up from Hyderabad producing an alternative for disposable cutlery. This product
addresses the important sustainability issue with innovative solution.

http://www.bakeys.com/

Figure 133: Bakey’s Edible Cutlery

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Resource base: Millet Flour Oil spices and salt. Complete edible base so it can also be
decomposed far easily.
Lifecycle Impact and benefits: Shorter after use life and higher pre-use life helps to achieve a
plausible replacement to plastic cutlery.
Human and Ecological Toxicity: Once discarded decomposes faster and can also be eaten so
no garbage through on the go cutlery.
Socio-Economic Impacts and Benefits: Higher Prices for millet and higher shelf life to the
processed millet product.
Total Costs and lifecycle Costs: Total cost will be higher than plastic cutlery but lifecycle cost
to environment is less as it decomposes faster than plastic.
Technical performance fit for purpose: It made from edible material but remains strong while
being used for eating. Also, It doesn’t pose harm like some cheap plastic cutlery of releasing
cariogenic elements in your food if its highly arm.
What’s next?
Product is getting popularity in India but moving to other market more flavours should be
added to appeal to different local markets to switch to edible cutlery.
Los Grobo
Los Grobo is a Business model developed by
Gustavo Grobocopatel to revive the agriculture
industry in Argentina. It works on new strategy
of being asset light company as every asset in
the company including agricultural land and
machinery required for farming is rented and
not owned by the company this promotes idea
of Sustainable farming by sharing technology.
https://www.grupomost.com/en/los-grobo/
Resource base: Local farmers working in their Figure 144 : LOS GROBO Group Logo
farm with wage surety.
Lifecycle Impact and benefits: Having this service helps to keep land fertile for longer time.
Human and Ecological Toxicity: In Los Grobo system farmers are trained along with farm
labours which make them learn use of exact fertilisers needed This helps to reduce
ammonia level in ground water near farmland.
Socio-Economic Impacts and Benefits: Higher yield with higher Prices for farms associated
with company.
Total Costs and lifecycle Costs: Total cost is cheaper as all equipment’s land and people all
are leased out and not bough for ownership.
Technical performance fit for purpose: It made farming business in Argentina revive also the
reach of this farming model is further increased to the rest of Latin America. This also
helped into bringing industralisation to farms at affordable prices making it an profitable
venture.

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What’s next?
More tie up with local social committees might be needed while expanding out of Latin
America to understand the cultural and social approach to the farming. Using ‘Dochakuka’
will help while spreading this co-operative farming method into different nations and
climatic regions. Also, we can witness that currently Los Grobo as a group is much larger and
do implement most of the glocalisation techniques in their work culture the strategy will
improve as the groups reach goes wider.

Conclusion:
If Glocalisation is used as the bottom up approach it will help the local entrepreneurs and
small businessman to reach a global level. It gives an opportunity for local innovation to
enter a global market. Most importantly glocalisation boosts sustainable development in
practical way creating a higher stakeholder engagement and co-creation rather it being just
on paper. So, looking at the future; to accelerate the sustainable technological
developments and its adaption in society ‘Glocalisation’ is the way forward.

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 References:
[1] https://web.archive.org/web/20051210071702/http://www.bangladeshsociology.or
g/Habib%20-%20Glocalization.htm
[2] http://www.glopp.ch/A4/en/multimedia/glocalisation.pdf
[3] https://www.britannica.com/topic/glocalization
[4] http://www.environmentallawsofindia.com/sustainable-development.html
[5] http://www.globalization101.org/what-is-globalization/
[6] http://dictionary.cambridge.org/dictionary/english/localization
[7] https://en.oxforddictionaries.com/definition/glocalization
[8] http://www.economicshelp.org/trade/globalisation/
[9] https://sites.google.com/site/globalizationoffood1221/examples-of-globalization
[10] http://searchcio.techtarget.com/definition/localization
[11] https://www.w3.org/International/questions/qa-i18n
[12] http://www.economicsdiscussion.net/articles/advantages-and-disadvantages-of-
localisation-of-industries/1535
[13] http://www.tutorsonnet.com/advantages-disadvantages-of-localisation-homework-
help.php
[14] https://kantanmtblog.com/2016/09/28/5-global-companies-localizing-right/
[15] https://phraseapp.com/blog/posts/5-examples-localization-gone-tragically-awry/
[16] http://blog.csoftintl.com/why-localization-matters-what-apple-samsung-kfc-and-
nintendo-got-right/
[17] http://economictimes.indiatimes.com/articleshow/7624256.cms?utm_source=conte
ntofinterest&utm_medium=text&utm_campaign=cppst
[18] http://www.consciousconnectionmagazine.com/2017/02/internet-of-things-
sustainability-strategy/
[19] http://www.casestudyinc.com/glocalization-examples-think-globally-and-act-locally

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