What is the regionalization/localization strategy and how does it differ from globalization?

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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.

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Regionalization or localization is the term often employed to describe strategies focused on regional or local scale. These may include monetary, product/service specific, culture related strategies. An example could be manufacturing and marketing of a specific product aimed at a certain market, say expensive yachts for multi-millionaires or Mandarin text books for China. 

Globalization, on the other hand, is associated with concepts or strategies at the global scale. Examples include common currency, free trade zones, etc. Globalization transcends regional boundaries and the same product is targeted for the entire world without any region-specific focus. Think about Facebook or Twitter or even enotes. All these are accessible from around the world without any specific focus on any geographical region. Globalization also includes combined efforts to tackle global scale problems such as global warming or peace/security, etc.

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Regionalization and localization are strategies in marketing in which a firm differentiates its products more than it does when using the globalization strategy.  In globalization, a firm makes one product that it markets in all countries.  There is no differentiation of the product and the firm pursues one marketing strategy.  In regionalization or localization, firms pursue different strategies in different places.  They can have different products in different regions or countries.  They can market them differently.  This is a more complex sort of a strategy.  Both strategies can work well if used with the right kinds of products.

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