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By Sandy Tapper

Everywhere you look, globalization is being hailed as the next evolution in Internet marketing. But before you jump on the globalization bandwagon with the expectation that the world will now beat a path to your online doorstep, there are a number of business and marketing issues that need to be considered:

Globalization Doesn't Atone for a Poor Business Model
The recent spate of dot.com warnings and failures clearly demonstrates what happens when there's a lack of a well thought-out business model for generating profits. The foundation of the "build-first, evaluate-later" approach to the Internet adopted by entrepreneurs and venture capitalists alike is crumbling under the weight of the conventional (and rather boring) wisdom of answering the basic question of "how will our business generate profits?"

In this mode, some may see expansion into overseas markets via globalization as the quick-fix answer. However, without evaluating your business model, implementing a globalization strategy can be viewed in the same misguided logic as "we'll lose money on every sale, but we'll make up for it in volume." Huh?

Whether your business is brick-and-click or solely web-based, don't assume that expansion into overseas markets or foreign language translation of your site will make up for a poorly thought-out business plan.

Key Issues to Consider Before Going Global
Focus your resources on identifying and addressing the strengths and weaknesses of your current core online strategy, including asking these questions:

• Who are your primary and secondary target audiences who are most likely to take advantage of your product or service; i.e., those with a greater propensity to buy what you're offering?
• Which of these target audiences reflect your most profitable revenue source?
• Will these target audiences vary from geography to geography, given cultural and purchasing behaviors? If so, how will that affect your online approach?
• How effective is your current English-language-based web site in generating online sales or meeting stated goals, especially from other countries? (Check your site logs or web tracker to identify your visitors' countries of origin.) What are the incremental gains to be derived by globalizing?
• What traffic-building programs have you implemented to generate online sales or achieve other goals? Will similar programs implemented in other markets be as effective, or are there other issues to be considered?
• What are the realistic goals of site globalization, and at what cost? What are the expected return-on-investment (ROI) objectives?
• If resources are allocated or diverted for globalization, what impact will that have on the effectiveness of your core site? Will the necessary funding be available to fully market your globalized online presence without diluting other marketing strategies and tactics?

Decentralized or Centralized Control (a/k/a "Glocalization" vs. Globalization)?
Much has been written about globalization, particularly how it's more than just translation: language options, content, navigation and cultural nuances are just a few of the many issues that need to be addressed by webmasters.

Another issue is "glocalization," defined by Logophilia's WordSpy as "The creation of products or services intended for the global market, but customized to suit the local culture." Many US-based companies opt to translate, manage and market their sites from either their US headquarters or from a single overseas office.

As noted in a recent article in TheStandard.com article about LastMinute.com, a U.K.-based travel site, glocalization takes globalization one step further by "…helping foreign companies look and feel like a local company." This is usually accomplished by having staff within each country or local geography be responsible for the content and marketing of each site.

Glocalization via localized staff involvement and/or localized outsourcing can help dispel the "outsider" or "foreigner" image that may negatively affect your brand image. However, glocalization involves more overhead and less centralized control. If you desire a singular universal brand, this lack of control may be an issue, unless you have a "brand identity cop" on board.

Go It Alone or Create Strategic Alliances?
Once you've decided to globalize, do you launch your globalization plan simultaneously across several countries, or do you go on a country-by-country basis (which may tip your hand to competition)?

It's already a given that globalization requires the substantial investment of time, money and resources. The multitude of languages, cultures, currency and buying behaviors, let alone back-office operational issues, creates a complex infrastructure that can present a logistical and budgetary nightmare.

As you start on a globalization strategy, it may be prudent to start out on a centralized basis to understand, first-hand, the issues emerging from your particular business, web site and marketing strategy. From there, you'll be in a better position to evaluate and determine your roll-out strategy into other geographic areas.

A less expensive, less traumatic option may be to create alliances or joint ventures with already-established complementary businesses in those markets where you'd like to expand your business. There will be headaches of a different sort, such as the melding of different corporate philosophies. Yet, the potential of going online sooner with an existing business may offer a more immediate benefit to the bottom line.

Learn -> Anticipate -> Plan -> Implement
When all is said and done, globalization is a business strategy that should be considered within the context of your overall business model and profitability objectives.

The above-mentioned case study on LastMinute.com highlights some real-world glocalization pros, cons and contingencies that every organization needs to address before taking the globalization step. LastMinute.com's experiences clearly illustrate the need to evaluate exactly how and why globalization will benefit your business before implementing it.

Sandy Tapper is a marketing maven and Internet evangelist helping businesses achieve an impactful, results-oriented web presence through strategically-driven site development and marketing.

With an extensive track record in packaged goods marketing, retail services, high tech and business-to-business, Sandy loves working within the Internet environment. She welcomes inquiries and comments at http://www.tappernet.com or stapper@tappernet.com.

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