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Localization: What and Why

The GLOBE Center defines localization as the process of adapting language, products, marketing, operations, organization or strategies based on a thorough understanding of foreign markets and the global competitive landscape.  GLOBE activities are based on the philosophy that companies which proactively research the needs of foreign markets and make adaptations based on this understanding will be more successful in international ventures.

Today’s international marketplace is becoming more globally integrated, yet companies are becoming more aware of national differences, such as language, cultural tastes, legal requirements, and distribution channels. Firms that ignore these differences and over-standardize their products are at risk of cultural blunders and failed ventures.  In recent years, there has been a dramatic increase in the number of companies providing localization services, and more companies are establishing globalization/localization units.

The key process of localization is obtaining information about foreign markets and applying this knowledge to the development of strategy for global competition. Companies leverage information on foreign markets by making adaptations to various business elements, such as product design, marketing communications, or operations. As companies cater to local differences, they must also explore potential global scale or scope economies in order to succeed in today’s competition. To achieve both objectives requires advanced strategies, methods, and technologies.

The concept of localization or adapting to foreign markets plays a role in several business functions, including international marketing, software/content localization, global new product development, global business development, R&D, and human resources. The GLOBE Center provides a broad resource base for a wide variety of professional fields.