Globalization?

It is now the 21st Century ...
Globalization is so 1980s ... so what gives?

Well, globalization is no longer the "buzzword" but a survival necessity. GM (as in General Motors), DaimlerChrysler have now blurred the lines of where a car is being manufactured. Recent car shows have also shown that Chinese car manufacturers are interested in busting into the US market. So WHERE is your car coming from???

But why this rambling?
I caught the article by Ian Fisher (of New York Times New Service, contributed by Mr Peter Kiefer, printed on The Straits Times)
(Link to NYTimes: http://www.nytimes.com/2006/01/12/international/europe/12italy.html?hp - REGISTRATION REQUIRED)
Apparently, McDonald's lost the market to local tastes. Synopsis is as follows:
McDonald's opened a branch in Altamura (southern Italy) in early 2001. But it closed in Dec 2002 due to lack of profitability. The lack of profitability is due to the fact that Altamura is famous as "The City of Bread" and the local cuisine is much more inline with the locals' taste.

While McDonald's does not admit that it is a "defeat" for the brand, it does signal that not everyone hungers for the mass market appeal items. Another case in point - for our friends in Singapore - Starbucks Toa Payoh Central is no longer there!!! OHMYGAWD!!!! The fastest growing franchise has actually closed a shop ... is it due to "lack of profitability"??? Can that be???

Back to McDonald's - there is now a new promotion by McDonald's Singapore. The launch of "FÀNtastic Burgers". This is basically a variation of the Japanese staple "rice ball". There are two versions - the beef and chicken flavours. It seems that McDonald's is trying very hard to cater to the local tastes. The overall (personal) impression was good - for the beef flavoured version. They used short/medium grain rice so that the texture was more sticky so that it held up better after being pan fried and moulded together. Using long-grain rice (read Thai Jasmine or Basmati rice) may not have held up as well.

Will this take off and make it onto the Menu Board as a permanent fixture?
I don't know really ... because there have been so many "new" items tested by McDonald's here.
Some examples that I remember off-hand that never made a splash:
1. Durian Shake - I really pity the foreigners what hit their olfactory organs when they stepped into the downtown McDonald's for a bit of "home-cooked" food.
2. Pandan Chicken Wings - quite innovative, but never really caught on
3. Kaya breakfast "burger"

Even in the US, they have regional adaptations - examples include
1. McRibs - can get quite messy but the sauce is nice
2. Lobster Sandwich - quite good actually, much like a Tuna sandwich but on a short baquette bread

That then in turn begs the question - how come our local company's can manage to keep up with such big names and be successful? To name a few:
Ya Kun (of Kaya Toast fame)
Crystal Jade (and it's many flavours)
Boon Kee Chicken Rice (OK - no Chicken Rice Wars here ... please!)

What does a company have to do in modern global society to stay ahead of the game?
Does infusing local flavours induce market share?
Does marketing affect local tastes or does local taste affect marketing positioning and research?
What is one's comfort level with foreign taste and/or ideas and how does that affect overall acceptance for something new and unknown?

One might say it is a small world but the possibilities are endless.

More to come .... Cheers!

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求学不是求分数、求爱不是求胜负。