Internationalization vs. Globalization for Business: Is There a Difference?
What do Walmart, Volkswagen, and BP all have in common? They’re on the top of Fortune’s Global 500 list, meaning that you can purchase their goods or services in countries all around the world.
The rise of the internet has changed the way people shop, making it easier for large corporations to expand their platforms.
You might’ve heard the terms globalization and internationalization used interchangeably in reference to their massive presence around the world. While they both involve expanding their market across foreign countries, they are not the same thing.
But what is the difference between internationalization vs globalization? Keep reading to find out.
Breaking Down Internationalization vs Globalization
In the tech industry, globalization’s code name is g11n. This is because there are eleven letters between the first and the last letter in the word. For that same reason, this field refers to “internationalized” as i18n.
Theodore Levitt was the first person to use the term “globalization” in 1983, which he defined as changes in social behaviors and technology that allowed companies to sell the same products around the world.” To become a global company, you must design products keeping your larger audience in mind. Therefore, you need to internationalize and localize.
Because of cultural differences in each country, you have to adapt your marketing tactics to the place you wish to sell your goods or services.
For instance, you can order poutine in a Canadian McDonald’s (because that is where the dish originated and is most popular), but you cannot buy it in the United States. The company has localized its menu by country or city.
How Internationalization Differs
You must develop an internationalization plan before localizing. It is the part of the process where you generate an idea or a concept that all humans either need or want.
To dive into the concept further, let’s refer back to Volkswagon. The company makes safe, quality vehicles—two attributes everyone wants in their car no matter where they live.
However, they sell different Passat models in Europe and America. They know their American consumers want larger cars than their European counterparts. The roads in America are wider, and people tend to have larger families on average in the U.S. than they do in Europe, so it makes sense.
The key to effectively internationalizing a company is not only by creating goods and services everyone will enjoy. It is creating something that you can easily tweak by the time you get to the localization process. Learn more about how you can easily keep track of your projects when working across multiple markets.
Begin Conducting Research and Succeed at a Global Level
All you need is one idea that works just as well in one corner of the earth as it does in another. Then, before you know it, you’ll be able to make the step from an internationalized company to a globalized one.
Now that you’ve got the breakdown of internationalization vs globalization, you might want more business insights. Check out the rest of our blog for articles that will help you take your company to the next level.
