Globalisation in business is not working

Walmart bought Seiyu to operate their business in Japan. But a year after the purchase, Walmart lost most of their outlets. It would not be surprising if Walmart shuts down their business there entirely. They will not be the first to do so. Earlier, UK's biggest retailer Tesco had to bail out of Japan after trying for nine years. Similarly, Starbucks failed in Australia and McDonald's in Vietnam.

The basic mantra behind globalisation for nearly two decades was: 'Make things fast and cheap. Customers will be hooked.' But things are changing now.

Walmart, Starbucks and McDonald's had a business process that had worked successfully in their countries of origin. But in Japan, people tend to buy from vending machines and local shops that share their value. This is why Walmart is still not doing well there. In Australia, the coffee-lovers have many different preferences. They also have a personal bond with local coffee brands. In Vietnam, it's easy and cheaper to have various food items than to have the items being offered by McDonald's.

Mass production and globalisation is now an outdated idea. This is an era of customisation. So businesses need to care about the country, state or group they are going to open branches in. They need to modify their products based on the prevailing values and preferences.

Emon Bhuiyan

Student,

East West University,

[email protected]