by In today’s fast-paced global market, companies face the tough challenge of standardizing operations while accommodating local variations. This balance is crucial in the digital age, where harmonizing software can lead to significant cost savings and efficiency gains. This article dives into «glocalization», a strategy that combines global efficiency with local relevance. We’ll look at how Kenvue, a leader in the healthcare and consumer goods industry, exemplifies this approach, achieving operational excellence by blending global standards with local adaptations.
The term «Globalization» has its origins in Japan. «dochakuka», meaning «global localization», was popularized in the early 1990s by sociologist Roland Robertson in his academic work “Global Modernities”. This concept describes adapting global processes to fit local contexts.
As a Senior PMO Manager in Kenvue’s Digital Transformation Office (DTO) with over two decades of global leadership experience, I was excited to recently immerse myself in various theories that perfectly align with the «glocalization» paradigm during my CAS in International Management at the Lucerne University of Applied Sciences and Arts.
The Glocalization Imperative
As companies strive to compete on a global scale, they must find the right mix of standardization and local customization. This challenge, often referred to as «glocalization», is about achieving a configuration that allows global organizations to maintain efficiency, consistency, and regulatory compliance worldwide while respecting diverse cultures, regulatory differences, and market specificities.
Benefits and challenges of standardization and customization
Standardization offers numerous benefits, such as improved efficiency, consistent quality, and simplified regulatory compliance. However, local customization is crucial to address cultural nuances, adhere to unique local regulations, and meet specific market demands. The primary challenge lies in finding the right balance for each market, managing trade-offs between efficiency and flexibility, and ensuring proper resource allocation.
Kenvue: A Case Study in Glocalization
Kenvue is a good example of how a company can successfully navigate the complexities of glocalization. As a leader in the healthcare and consumer goods industry, Kenvue is driven by consumer well-being, quality, and innovation. Its extensive product portfolio, global reach, and commitment to sustainability have positioned it at the forefront of delivering solutions that empower individuals to live healthier lives.
Product Portfolio and Innovation
Kenvue’s brands are trusted by millions of consumers globally, covering a wide spectrum of needs, including pain relief, skincare, oral care, and nutritional supplements. The company places a strong emphasis on R&D, continually investing in innovative technologies and solutions to advance healthcare and improve life quality. This investment not only enhances product offerings but also aims to create a more sustainable supply chain and reduce costs.
Global Presence and Sustainability
Operating in several countries, Kenvue’s extensive distribution network ensures its products are accessible across all market regions. The company’s commitment to sustainability is evident in its efforts to reduce its environmental footprint, promote sustainable practices, and contribute to different communities. Ethical business practices, such as in vitro testing for all products, are integral to its operations.
The Strategic Approach to Glocalization
Addressing the needs of consumers is central to Kenvue’s customer-centric approach. The company prioritizes customer satisfaction by offering effective and high-value solutions. In an increasingly interconnected world, the demand for streamlined operations and consistent product quality is rising. However, the consumer health sector is culturally sensitive, where local practices, regulations, and consumer preferences play a significant role.
Balancing Global Standards with Local Needs
At Kenvue, we face diverse regulatory landscapes in each country, requiring it to ensure compliance with local health and safety standards while maintaining global standards for product quality and safety. Building trust with consumers by respecting health preferences embedded in local cultures is crucial for developing and marketing products effectively.
Recommendations for Sustained Success
Based on international management theories and Kenvue’s operational context, several recommendations can help lock in competitive advantages and achieve global market leadership:
- Define a Clear Vision: Emphasize global efficiency and local responsiveness, ensuring alignment between central business units and regional offices.
- Allocate Strategic Resources: Balance adaptation and aggregation, focusing more on local markets with weaker sales and decentralizing R&D and Digital Transformation departments.
- Create Cultural Relevance in Marketing: Develop local marketing campaigns that resonate with local cultures while maintaining a consistent global brand.
- Empower Regional Offices: Grant regional offices decision-making authority to respond quickly to local market needs and establish cross-functional teams with local and global talent.
- Invest in Digital Solutions: Implement global digital solutions that can be modularized according to local market needs, leveraging data analytics for real-time insights on trends and customer behaviors.
In the pursuit of global market leadership, Kenvue must continue to adapt to local markets, increase flexibility, and exploit arbitrage opportunities. By finding the right balance between global standards and local customization, Kenvue can position itself as a competitive player in the global consumer health industry.
Embracing the “glocalization” approach will ensure the company meets diverse market demands, maintains operational efficiency, and strategically leverages country-specific dynamics to boost its competitiveness globally. Navigating the glocalization challenge is no small feat, but with a clear vision, strategic resource allocation, and continuous investment in innovation and sustainability, Kenvue can achieve operational excellence and consumer satisfaction on both global and local scales.