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Minion Case Study

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Lecture: RubanKanti Das
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Team members:
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Le Toan Dang s3344033
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Nguyen Thuy Van s3325150
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Nguyen TheThanh s3344060
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Nguyen Truong Khanh Ngoc S3344067
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Lecture: RubanKanti Das
-------------------------------------------------
Team members:
-------------------------------------------------
Le Toan Dang s3344033
-------------------------------------------------
Nguyen Thuy Van s3325150
-------------------------------------------------
Nguyen TheThanh s3344060
-------------------------------------------------
Nguyen Truong Khanh Ngoc S3344067
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* Case Study Summary: The case study “The Implication of Globalization for Consumer Attitudes” is all about the anti-globalization trend, the important of localization site and the main factors e-businesses have to consider when they expand their company internationally. There are two main reasons which be stated in the case study regarding localization site. First of all is the advantage of using local language, in some European countries, they are not appreciating the trend “globalization” as “Americanization” because it makes people feel negatively about capitalism and the English language; so using local language would help company present a “home side” image with customers. Secondly, site localization will help e-businesses have a clearer view about customer specific demands at different places. To be successful using localization site in expand business geographically wide, e-business need to look and understand the different among demands of customers who live at different nation, specific strategic plans and the impact of site localization to customers’ shopping attitudes. * Arguments For Site Localization
To begin with, protesters of anti-globalization stated that a firm must apply globalization strategies to localize its website to successfully attract online global customers; it is to determine customers’ demand in different nations (Dysart and Joe, 2001). Web’s content that has cultural adaptations will increase favorable attitudes of customers to the site and improve the intention of purchase of consumers. From that, it brings more benefits for the business in terms of cost effectiveness, sale increase, greater brand identification and ease of management. * Cost Effectively
Firstly, protesters of anti-globalization provide one advantage of web site localization is cost-effectiveness (Business Wire, 2001). It helps to estimate and manage the cost of globalization projects; it reduces the cost of global advertising but still can attract more consumers efficiently for the firms (Business Wire, 2008). For example, there are nine languages in eBay’s website. It has helped lower eBay's costs of offering other services, while giving the company greater flexibility throughout the content to get good feeling from customers (Chaffey, 2009). In fact, site localization gets company into global markets more rapidly and cost-effectively (Professional Service Close – Up, 2012
Increase company’s sales
In addition, according to Jalil and Gholamreza (2011), site localization plays an important in the success of business because of its cross-border transactions. In fact, effective localization website can raise 200% e-sales of a company (Cyar and Trevor-Smith 2004). The globalization has created the integration of the national country into the world trade. From that, the range of product offering has also increased during the standard and demand of customers all over the world (Dave 2009). As a consequence, customers will consider the product the firm offering because it meets their satisfaction. To illustrate, F21 that a famous American fashion brand has been conducted site localization through 7 versions into 7 different languages and culture. This is supported by the idea that web localization includes translating the language of the site to specific languages for specific cultures, as well as work with local business practices, policies and regulations (Callaghan and Dennis, 2003). One more example is that the results show family is one of the most important things to Asian, so the company’s strategy is to plan a global advertising campaign and build website with “family” theme. Customers will feel they are in territory when coming to the site and are more attracted (Jenyi et al, 2012). In short, it is clear that localizing company’s site makes it more user-friendly to global audiences and could attract more customers and increase more sales. * Grater Brand Awareness and Identification
Moreover, site localization helps business to identify its brand more effectively. Because of different version for different language or culture, there are many customers will gain their knowledge more about business brand who come from many different countries. This means that customers can easily get information and find the value the business offering to the market and make brand become well-known
Ease of Management
Last but not least, the ease of management from site localization also contributes to the success of business. In fact, if business have site localization such as different version under a specific manager’s control that has responsibility to manage each version presenting each culture or country, it will help to reduce the pressure on only one manager for whole local site to satisfy every requirement of customers all over the world. This leads to the parent company for managing its online shopping system more effective * Arguments Against Site Localization: * Supply chain and distribution system is much more important than a localized website
According to Muddyman (2009), site localization is essential for e-commerce in order to reach the customers at target market. However, Vanichinchai and Igel (2011) argued that, site localization even important in e-commerce but the role is incomparable to high quality and stable supply chain system. To illustrate this, Das (2011) emphasizes that, although companies can localize even customize their website which reflect and provide fully excellent shopping experience to customer but that business still could be faced a failure if their supply chain and shipping system not working appropriately. For instance, Bustos (2010), indicated that, some e-business even with the localized website but in some situation still not perform appropriately due to the problem with shipping and supply chain, result to inconvenience and disappointed experiment when using that company’s service. (Figure 1)

Figure 1: An online shopping fail to ship the product to customer’s address
Figure 1: An online shopping fail to ship the product to customer’s address

Figure 2: Just-In-Time (JIT) shipping technique model
Figure 2: Just-In-Time (JIT) shipping technique model
On the other hand, ASOS.com and Firebox.com are two specific successful e-commerce-without-using-localization site because they all use worldwide shipping system (Figure 3) and modern logistic techniques to deliver the items at right time and right place (Das, 2011) (Figure 2). Ayer (2001) indicated that, nowadays, e-businesses are paying high attention to apply logistic techniques such as Just-In-Time (JIT), improve and expand the warehouse system; or using Radio Frequent Identification (RFID) to enhance their distribution system and convenience shopping to global customers. Besides that, Misra, Khan & Singh (2010) stated that, invest capital to improve supply chain system and logistic technology is less costly and more effectively in term of providing convenience shopping for customers rather than spending money to hire staffs and build up localize website at different countries (Figure 4). Therefore, e-businesses are unnecessary to localize their website but localize the supply chain system to match with the local situation and enhance modern shipping techniques are much more essential.

Figure 4: International Shipping Model of E-Commerce
Figure 4: International Shipping Model of E-Commerce
Figure 3: ASOS.com
Figure 3: ASOS.com

* English is universal language and lingua franca on the internet
Furthermore, Muddyman (2009) found that, site localization will localize the language, currency and even culture according to different location. However, it seems to be unnecessary at the modern world as nowadays, Torres (2013) emphasized that, English is being used by 85% of international organization as official language, more than 50% of the website in the world and over 90% of e-commerce site (Figure 5). Therefore, English is a universal language on the internet, as a lingua franca that people can refer to and understand without any problems and paying money to build up site localization is unnecessary regarding language concern.

Figure 5: Top 10 languages used in website in the world
Figure 5: Top 10 languages used in website in the world

* Criminal Concern
In the modern business, Globalization is a good way that created opportunities for many businesses across countries but also crime. In fact, according to Maroto, J & Deboliti, M 2001, applying globalization to localize the website could be the key success for these businesses to bring their business close to the foreign customers in order to expand their business
However, Nikolice, V 2003 sated that even though globalization has allowed free world trade, global initiatives or other benefits but the dark side of globalization will bring more affect to people which allows for globalizing of crime like sex trade.

To elaborate, globalization is a tool for people to know and explore about sex trafficking which the most common form about human sex is trading. People can easy go to some website localization about sex to find information and agree on the agreement with each other about sex trading. Based on the data in 2007, approximately 66% of trafficking victims are women Brazil who are forced OR Threat of force in these trading (Liveyourdream 2013). Actually, Cambodia and Burkina Faso are some countries that have sex trafficking by using localization (Global Freedom Centre 2013). Besides that, according to Powell, A 2013, many sex advertisements are put in the website for two purposes which are sex trading and profit of advertising as well. It is indirect evidence that show the disadvantage of globalization in e-commerce * The unfair trading between poor and rich countries
Secondly, another disadvantage of globalization is economic distribution between poor and rich countries (Milanovic, B 2005). Globalization is allowing international free trade between countries but this trade is not fair and wealth for all (Cohen & Kennedy, Global Sociology, 2000). To be more specific, in every $1 generated from export activities, approximately 0.75$ will be owed by the world’s richest countries. According to Watkins 2002, $0.003 is amount of money that low income nations will be achieved from export activities. For the cost of localize the website, it is unfair for the companies in developing countries because these companies need to pay more money than enterprises in rich countries because of the different value of money (US Economy 2013). In fact, the money will be used to localize the website in term of hiring people to build and research the website to deeply match with each country.
It can be seen that Globalization has lots of affect in business environment, society and especially e-commerce. Sex trading and economic distribution are two main negatives affects that is existing in the world because of Globalization

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