Corporate Branding and Globalization Essay

Introduction Globalization can be said to be an increasing pattern of worldwide interconnectivity that has led to a large number of contrasting perceptions emanating from cultural differences. With increasing globalization, the world appears to have become a much smaller place, resulting in the amalgamation of cultures as well as greater sensitivity towards cultural differences. There are varied kinds of differences relative to minority rights, religious movements and gender and identity politics. However, the global marketplace is characterized with an unending battle for competitive advantage, which has created the need for global organizations to constantly keep finding new ways of attaining and sustaining their advantages in such a competitive environment. The main thrust behind such abilities is efficient corporate branding because by their very nature, brands have the potential to classify differentiation in pertinent and convincing ways. This ability has played a major role in distinguishi ng global brands such as Coca Cola, Dell and Unilever. This paper reflects on the role played by corporate branding in contemporary forms of globalization. Main Body Given that the current business environment is becoming increasingly intense, the leadership status of any popular and well established company can change overnight because just enjoying a competitive advantage is no longer sufficient in the current global business environment. The main determinant for consistent development and growth is the ability to sustain competitive advantage. Time is known to play a major role in this regard because while many companies could be focusing on adopting the latest technology and innovations, others would have moved up to higher levels. This aspect becomes more important in view of the large numbers of organizations that are struggling to remain afloat in a turbulent business environment. The only solution is to adopt an effective corporate branding strategy. A brand cannot be said to be a product or trade mark or any kind of advertising because these elements serve in achieving the main objective of establishing a competitive brand. Marketing experts believe that corporate branding is the currency of the twenty-first century and must be uniquely strategized in order to get the required outcomes. A global organization that can constantly deliver such promises stands to gain in establishing long term relationships, which results in spawning goodwill and good reputation. In the contemporary globalization context, the brand promise is conveyed through the brand strategy and conveyed by means of the brand personality. It is necessary to establish appeal, distinctiveness and clarity in linear association with the supremacy of the brand. In determining the issues that affect corporate branding amongst multinational organizations, it is important to examine the characteristics of successful international brands. It is apparent that globally successful brands do not focus on highlighting their products or services but aim at selling specific concepts. For example, Coca Cola sells soft drinks but in different parts of the globe its products are perceived more with a sense of enjoyment. Dell adopts the same strategy and does not focus on selling its computers but on what is made possib le with its products. Similarly, McDonald’s, which is the biggest and fastest growing restaurant chain in the world, does not focus on describing the qualities of its food items but on promising unique experiences to consumers. McDonald’s branding strategy is a true example of giving credence to the cultural practices prevalent in its different market segments. Although it sells pork in several of its restaurant chains across the world, it does not do so in the Middle East in respecting the cultural and religious beliefs of local people. Similarly, in India, where majority of the population is vegetarian, McDonald does not sell beef products. Emirates, which is amongst the world’s leading airlines, focuses on selling its service instead of highlighting other aspects of its products. All these global organizations share common branding characteristics that can be emulated by organizations striving to expand globally. The prime focus has to be on adopting an appropriate branding strateg y. The main considerations in making strategies and plans in a globalized environment pertain to evaluating the operating model of the organizational structure and to create a branding strategy that appeals to the internal and external environments. By mobilizing a leadership team with international experience, the organization can effectively execute and integrate branding relevant to the given segment and location. This is evident from the practices of companies such as Starbucks and Nike that emphasize on all aspects of business except marketing. This strategy is particularly important in deregulated global supply chains because firms have to be careful about the link between politics and money that have been impacting even the policies of the World Trade Organization (Pieterse, 1996). Brand based campaigns are known to have rattled their respective corporate targets, in many instances making organizations to change their policies. In this regard, Klein (2002) has given the example o f three brand campaigns that are noteworthy in having deeply impacted consumers’ perceptions. These brand campaigns pertained to the Swoosh, the Shell and the Arches that developed tactics in making use of courts to enforce adoption of transparent practices by corporations. They also used internet in bypassing the conventional media systems and hence proved to be revolutionary in impacting the potential of political engagements (Klein, 2002). According to Rantanen (2004), the media plays an important role in the globalization process although he does not assert that the media is the only aspect that matters in globalization. He holds that through their individual media activities, people indirectly contribute to the process of globalization because such media activities have a strong bearing on the creation of social practices. From this perspective, it appears that the branding strategies of multinational organizations addressed through the media can impact the business performance of these firms because culture that is established through the impact of media will create pre ferences for the advertised goods and services. The objective of multinational corporations in using the media for their branding objectives is to ensure that people in new market segments become aware of the products through advertising campaigns that associate their social and cultural practices with the benefits and satisfaction accruing from the advertised products. Pieterse (2000) has raised the issue of whether globalization involves the creation of a pattern towards human integration. In fact, it is true that increasing levels of interrelationships have resulted because of globalization, which has created a shrinking world. This in turn has led to the overall widening of the extent of human cooperation because of the creation of common interests and preferences that have been made possible through the influx of products and services introduced by multinational corporations in different parts of the world. The same product is introduced in new markets with different branding strategies that are related with local cultural and social practices, thus creating a link between consumers in several parts of the world, although the motivation to buy such products varies in different parts of the world. This difference arises primarily because of branding strategies of multinational companies. Conclusion It is apparent that in the current volatility that characterizes global businesses, branding plays a very important role by addressing the needs of consumers in different parts of the world in keeping with their social and cultural practices. Companies with strong brands thus prove to be more resistant to global economic fluctuations in being able to provide high levels of demand predictability and higher level of reliability and stability in forecasting. Such companies are characterized with having a consistent flow of revenues and profit, which allows them to predict higher returns for their stakeholders. In view of these circumstances, brands can be considered as any other asset, which can account for a given level of profitability in producing good results for stakeholders. References Klein, N. A. 2002. Tale of Three Logos – The Swoosh, the Shell and the Arches; in No Logo: No Space, No Choice, No Jobs, Picador Pieterse, Jan Nederveen. 2000. Globalization and Human Integration: We are all Migrants, Elsevier, Volume 32, Issue 5, Pages 385–398 Pieterse, Jan Nederveen. 1996. Globalization and Culture: Three Paradigms, Economic and Political Weekly, Vol. 31, No.23, pp.1389-1393 Rantanen, Terhi. 2004. The Media and Globalization, Sage