Regionalization or localization is a business strategy that maintains focus on a particular region or area and as such, this approach employs differentiation based on the regions. Companies establish their operations in one particular area before expanding to other regions growing into international companies or multinationals. These companies work to cater to the differences among the markets they operate in. In this case, the companies adopt a regionalization strategy which may be seen through their financing, marketing, and management, among other business aspects. For example, a product company may employ differentiated marketing strategies in terms of packaging and advertising or even offer different products in the different regional markets.
Globalization strategy refers to the use of the same business strategies by multinational companies in all the markets they operate in. For example, the company would offer the same products without any form of differentiation in all the markets they operate in.
Twitter is an example of a company using both regionalization and globalization strategies. The Twitter page has the same look, feel and functionalities regardless of whether one is accessing it in Africa or Europe. However, the trending section of the site’s page is region sensitive and displays content that is trending in the particular region a user is accessing it from.