Abstract
Globalization creates a complexly interrelated arena where multiple local differences converge and compete against each other. With respect to its consequent potential impact on various local cultures, Western dominant cultures have been believed as the ultimate destiny for the modernizing cultures under this fast-changing global context, as is more often proved in business where countless companies in developing nations have been keen on learning from Western business giants in the names of modern enterprise administration or international conventions. An originally underprivileged Chinese brand, Lao Gan Ma Chili Sauce, however, has established an invaluably different developmental route by branding with strong Chinese flavors and exposing itself as a miniature of indigenous cultures, successfully growing into a worldwide Chinese cooperation in the past decades. Decoding the mystery underlying its success therefore of significance in cross-cultural business studies. Applying such cultural theories as cultural identity, symbolic consumption and instinct theory, the present study analyzes the business strategies Lao Gan Ma conducts. The qualitative study in this essay demonstrates that cultural resources of a firm are potentially convertible into its powerful capital in the fierce competing world market. More specifically, a unique cultural identity and certain perceived symbolic values retained by a business corporation can serve as alternative and desirable resources to make that firm, especially one in less affluent societies, a competitive contender in the globalized market system. Besides, enterprises whose products cater to the human inner instinct can enjoy exceptional advantages in their penetration into the global market.
Highlights
In an increasingly interrelated world system, corporations from affluent countries own some priorities to extend their operations in this huge global market [1]
The worldwide distribution of this Chinese indigenous brand can serve as an exemplar of other Chinese brands and even its counterparts in other peripheral countries in their attempts to avoid being marginalized in the global competitive arena
To survive in the competitive global arena, cooperation in less affluent countries can alleviate the sufferings from its inadequate economic capitals through reconstruction of their local culture resources
Summary
In an increasingly interrelated world system, corporations from affluent countries own some priorities to extend their operations in this huge global market [1]. It imposes serious challenges to the survival of some domestic brands in less developed areas, which once enjoyed great popularity among their local consumers. Notwithstanding in the face of stiff competition from mass peer industries in both home and foreign markets, Lao Gan Ma, a traditional style of chili sauce with authentic Chinese flavors from top and toe, has successfully established itself in the world market. Brands -- A Case Analysis of Lao Gan Ma Chili Sauce economic or political explanation. Several particular tactics based on a cultural consideration are instrumental to a deeper understanding of the smooth development of such kind of brands in the global market. The present paper attempts to decode the mystery underlying the globalization of Lao Gan Ma with a focus on cultural explanation where cultural identity, symbolic consumption and instinct theory are involved
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