Globalization and Localization

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  • Topic: Hotel, Tourism, Hotel manager
  • Pages : 12 (3698 words )
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  • Published : April 3, 2011
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Analyze issues of globalization and localization

Abstract:

How hotel companies keep being successful in international hotel industry (IHI). Nowadays, the stiff hospitality industry situation puts more stress on hotels, especially on international ones. Furthermore, clients who purchase hotels’ products are not only for a place to stay, but more eager to pursuit for an impressive accommodation experience. Globalization helps hotel corporations represent themselves to the world and succeed in operation more easily. While localization makes hotel firms better suit local market, local culture and so on. Globalization and localization are not two separate issues; instead they have internal and external links which would affect each other. No doubt that the combination of two is the best strategy for IHI, as it could develop advantages to maximum and eliminate disadvantages to minimum.

Key words: globalization, localization, international hotel industry (IHI).

INTRODUCTION
This paper aims to analyze an overview of globalization and localization, which come into play important roles in prospects and fate of international hospitality industry. With high-speed economic development and increasing entrepreneurs’ ambitions, hotel global expansion has become an essential strategy for hotel managers to achieve successful business operation and gain maximum profit. However, hotel corporations can stay competitive by “thinking globally, acting locally” (Hall and Mitchell, 2002). In other words, hotels should take charge of global trends and local concepts at the same time. Hotel firms have been paying more attentions to localization since tourism trend makes the world look the same. Therefore, hotel distinction becomes an important factor to attract consumers by leaving deep impressions. The first part takes a look at influences of globalization in hotel development, such as significances, challenging factors, along with strategic occasions. Although IHI has witnessed a lot of success due to globalization, there are still inevitable disadvantages because of inadequate localization strategy. Then the second section is a major concern of this paper as strengthens, weaknesses and opportunities of localization. To some extend, localization is more important particular to IHI. Based on globalization, when focusing on unique localization, you have to focus on destination image, hotel design and ambience, and marketing strategy. At last, a case study shows numerous merits mainly due to successful globalization and localization management. What is more, personal recommendations are listed in order to offer hospitality managers a better strategic implement and management for success.

Globalization
Globalization brings intensive significances in helping hotel companies gain additional customers, competitiveness and changes, and reduce cost. The reorganization and restructuration of hotel corporations and their business depend on customers, competitiveness changes and cost, which are the key elements of market environment (Galicic & Ivanovic, 2007). What does globalization mean? In general, globalization is a strategy of company business or operation expansion to foreign markets in order to improve their business to new heights, and it increases integrated global economy (Frink, 2009). The hospitality industry has gone globally; hence consumers can find Hilton, Marriott, Starwood easily all over the world. Globalization makes it simple and convenient for IHI to offer similar services, goods and standards to various people even from different countries. As a result, hotel companies could reach a greater customer base due to the rise of market share; in turn, the additional customers could generate a significant profit directly. Human resource management is the backbone of every organization, so when hotel companies adapt to globalization they have stronger competitive capacities. ‘Choi et al. (2000) observed the evolving dynamics of...
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