Why You Want to Be, Work and Do Business With a Glocal Company

First, let's start by defining what a Global company is. A Global company is a company that operates in many countries around the world, typically by selling products or services in multiple markets. A glocal company, on the other hand, is a company that operates globally, but also adapts its products or services to meet the specific needs and preferences of local markets. In other words, a glocal company is able to balance the benefits of operating globally with the benefits of being attuned to local conditions. 

There are many benefits of becoming, working and doing business with a glocal company. We will list them from the perspective of three key stakeholders of a company: boards and managers, employees and business partners:

Board and Managers:

• Greater market reach: By operating globally and adapting to local conditions, a glocal company can reach a wider market and tap into new sources of demand and new products.

• Enhanced flexibility: A glocal company can adapt to local changes in business conditions, regulations and customer needs; hence, making them able to compete with the local players in the market.

• Greater resilience: By diversifying their operations across multiple markets and regions, companies will be more resilient to economic and political risks. 

Employees:

• Exposure to diverse cultures and markets: Working with a glocal company will provide the opportunity to work with colleagues from different backgrounds and cultures, which will be valuable experience and form a global mindset.

• Professional development: Employees have at their reach the ability to work in different countries and markets, gaining more experience in the business and an in-depth understanding of the local markets while building a global perspective.

Business Partners: 

Customers:

• Same quality across regions: Having as a supplier a glocal company, will ensure that the products you will consume have the same quality standards across the world, while tropicalizing them to the end market, delivering even further value to the customer.

• Local service and support: Customers receive the benefits of consuming a world-class product, while dealing with a local presence in its own language and time zone. This allows faster responses, compliance with local regulations and requirements and an enhanced customer experience.

• Risk management: Glocal companies are able to diversify their supply chains and provide redundancy of critical manufacturing processes; this will lead to minimizing the risk of supply disruption to the customer using their global footprint and processes.

• Global network of resources and footprint: Glocal companies have global networks of operations, which can provide access to resources and expertise from around the world. This can be attractive to customers looking for a company that can provide a wide range of products or services in several different regions and markets.

Suppliers:

• Global reach: A glocal company has a global presence and can provide access to a wide range of markets for suppliers.

• Strong brand recognition: Glocal companies that consistently deliver high-quality products or services in multiple markets can build a strong and positive brand reputation, which can be attractive to suppliers looking to do business with reputable companies.

• Large and stable demand: Global companies often have a large and stable demand for goods and services, which can be attractive to suppliers looking for consistent business.

Understanding the benefits depicted above, becoming a glocal company might sound achievable for incredibly big companies, leaving aside medium-sized and small businesses. While true that it is a challenge, there are a few points that need to be addressed and organized in order to start down the path to becoming a glocal company. In the North America region, we are seeing the need to operate in the US, Canada and Mexico, to say the least, and this is certainly within  reach for smaller sized companies.

Key points:

1. Create general guidelines: To maintain and benefit from a broader scale, the local process will have to be designed under a general guideline with main core processes where the goals, vision and core competencies are clear.

2.  Create processes that can adapt to local resources and are linked to global guidelines: When designing administrative processes and manufacturing support processes, they need to have some space for flexibility to adapt to local conditions, such as HR processes, purchasing, logistics, customs, invoicing and taxes requirements. All these most likely will differ from the company’s country of origin.

3.  New business development and customer support: Manufacturing or distributing in another country is not being a glocal company; to be a glocal company, you need to work in and develop the local market. This is where the need for  knowledge on how to do business in the country and the local competition has to be addressed. The goal is to take a position in the local market and develop your brand.

4.  Local management: When operating in different countries, you will find differences in how to do business and what the main stakeholders of the company need. There has to be a clear vision of how to bring your products and services to that market and a quick decision-making process to truly adapt to the conditions of the market served.

Glocal companies can certainly provide  great benefits  to their stakeholders and to the market they serve. This is why several companies have been converting to this model. With the regionalization of the world, I believe this will be the trend for several years to come.