LOCALIZATION

OF BUSINESS

In simple words Localization is the

process of adopting something to make it
suitable for a specific location or culture.
It is like customizing something so that it
works well in a particular place or for a
particular group of people.
 Table of contents

01 02
Merits and demerits of Factors affecting
localization

Better use experiences & Primary and secondary factors

Costly and time-consuming

03 04
Alferd’s weber theory Conclution
Optimal location for least Target Audience, Culture &
transport cost Language
 01 Location of Business

One of the significant factor affecting the successful overation of any

type of business organisation be it large or small is the location of the
organisation. We are aware that the main objective of business
organisation is to make profit and sustain management of the
organisation can be effeciently run if the size location contribute to
the economies of all kind of business process i.e. – production and
distribution.

It is important to note here that the suitable location of the

organisation does not imply the most favourable location where the
cost of production and distribution are lowest. Rather it means that
all factors that influence the running of an organisation is optimisied
to their maximum benefits.
Merits of Localisation
1. It helps people in a specific area understand
and related to a producer content because it
is in their language and reflects their culture.
2. Business can sell more products or service
because they relate to the preferences and
need of local customers.
3. When software or websites are localized
they become easier to use for people in a
particular region making their experience
enjoyable
4. Localisation shows respect for local
customers and traditions, which can prevent
misunderstandings and potential offense.
5. Companies that invest in localisation often
have an edge over competitors who don’t as
they can reach a broader audience.
Demerits of Localisation
1. Localisation can be expensive as it involve
translating content adopting design and
sometimes even relating entirely new version
of a product.
2. The process can take a lot of time, which
might delay product relases or marketing
campaigns.
3. It is not done properly localisation can lead to
misunderstandings are unintentional culture
insesitivity.
4. Keeping localisation content upto to date can
be trickly, especially if change need to be made
in multiple language region.
5. Focus too much on localisation for one
specific area may cause a company to miss
opportunity in other markets that are not yet
targated.
 Primary factors affecting Localisatio
1. Raw material
2. Power
3. Labour
4. Land
5. Capital
6. Transport
7. Market
.
Secondary factors affecting Localisation

Government policy
Momentum of early Personal factor
start

Political stability Compatitive industry

Industrial atmosphere Climate

Momentum of early start

This is another important factor affecting

industrial location. A few industries start at
a place and gradually other similar type of
industries start at that particular place. For
example, at Manimajra (a small town near
Chandigarh) a few small automobile spare
parts shops started about two decades
back, but now a fully fledged automobile
market has developed in that area.
Similarly, at Ludhiana a few hosiery units
started in the beginning, now Ludhiana
has become a very big hosiery articles
producing centre in India.
Industrial atmosphere

This factor refers to the thinking of the people

with regard to a particular industry in a
particular area. They involve themselves
completely in the intricacies and various
operations of the machines and implements
being used in the industry.
Compatitive Industry

Limited and healthy competition

encourages the growth of industrial
units in a particular region. On the
other hand, unhealthy competition
retards the industrial growth in a
region.
Alfred Weber Theory

Alfred Weber’s theory of the localisation

industries in a seminal work in economic
geography published in 1909. it was the first
attempt to develop a general theory of why
industries are located where they are. Weber’s
theory is based on a idea that firms will locate in
their place where they can minimise their total
costs. Which includes transportation cost, labour
cost and agglomeration economies.
 Weber’s theory identifies three
main factors that influence the
localisation of industries.
Apart from this weber
theory, it also defines
concepts weight gaining
where finished product’s
weight is more than it’s raw
material.
Ex. Bricks
Weight losing where
finished product weight is
less than the weight of raw
material.
Ex. Sugarcane
Live Examples

Shoe industries in Agra :- India is significant

economic sector known for it’s craftsmanship
and production of leather footwears. Agra is
India’s largest manufacturing hub. It produce
1.5 lakh pair of shoes every day. Agra’s
footwear industry has it’s root in 16 th century,
Mughal India,. In around 1885, shoe industry of
Agra recognised world wide.
Ex. Dawar footwear & Leatherits roger
industries.
Perfume industry in Kannauj also known as Kannauj
Ittar is a traditional Indian perfume made in the city
of Kannauj in Uttar Pradesh.

The perfume is industry Kannauj is so vast and

traditionally establish that Kannauj is also known as
perfume capital in India.

Kannauj perfume has reached both local and

international market. Around 20 companies export to
foreign countries north America and Europe to the
middle east, central Asia and Oceania.

Ex. Tirupati perfumes.

 Gaurav Kardam
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Criticism of Weber’s theory dsf;kljadsf;lkasjdf;lkajds
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The main criticism against weber’s theory is

that it is too simple, unrealistic and imaginary
because it does not throw sufficient light on
different factors and circumstances having a
bearing on location. The most important factor
which affect localisation is capital, known as
primary factor weber’s not considered these
factors in his theory. This factor is very
powerful as the factor substitute all the other
factor affecting.

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 Conclusion

Localisation is like a super helpful tool that makes our world friendlier and more connected. It’s not
just about speaking different languages. It’s about making things just right for different peoples and
cultures. Here is why it’s so great.

1. Target audience :- it is essential to understand the target audience language, culture and preferences
to adopt the content appropriately. In the perfect world, it should involve conducting market research,
gathering customer ;’;;’ and analysis the competitive landscape. You can create separate personal user
for new market to understand their specific needs and adopts your communication accordingly.

2. Respecting different cultures :- Localisation shows that was respect and appreciate the cool things
about different culture. It's like saying. "We care about you way of doing things", and that makes
everyone feel happy.
● 3. Helping business grow :- For companies localisation is like a secret weapon that helps them grow
and be more successful. When they make more money and compete better in the world.

● 4. Better communication :-Think of localisation as making it easier for people to understood each
other. When we talk in a way that makes sense to someone. It is like a light bulb turning on in their
head. No more confusion.

● 5. Learning new stuff :- When we do localisation, we get to learn new things. We see how other people
do things and get great ideas from them . It's like discovering a treasure chest of new knowledge.

● 6. Clear goals and objectives :- establishing clear goals and objectives is essential for successful a
localisation this can include creating a localisation roadmap, setting realistic timeline and identifying
the key performance indicator (KPI) that will measure the success of the project. You need to
understand what your long goals are. Your priority mieret enter in new market increase brand
awareness improve activation and retortion rates or something else.