“Distance Still Matters” is an influential Harvard Business Review article. In this work, Ghemawat proposes the CAGE distance framework that. Harv Bus Rev. Sep;79(8), , Distance still matters. The hard reality of global expansion. Ghemawat P(1). Author information: (1)Harvard . STIll MATTERS The hard reality of global expansion. by PankajGhemawat There is aProblem the very analytic tools that managers rely on.

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Request an e-inspection copy. Without identifying a clear audience or identifying if this a prospective, retrospective, or combination tooGhemawat lessens the utility of his theory.

Add to cart – Free. But other factors related to distance, matter even more e. Have you written lots of study guides or notes?

Exclusive web offer for individuals. Earn hundreds of dollars each month by selling your written material to your fellow students. Companies routinely overestimate the attractiveness of foreign markets.

Appendix S1 — Examples of alpha hulls calculated for the observed. By distance he basically means performing a gap analysis on four dimensions: These results are framed in an disgance created schematic: Most of these costs and risks result from the barriers created by distance.

Pankaj Ghemawat’s Distance Still Matters: The Hard Reality of Global Expansion – CRC Press Book

By focusing on national wealth, consumer income, and people’s propensity to consume, CPA emphasizes potential sales, ignoring the costs and risks of doing business in a new market. This article provides interesting research data on how different distance attribute affects international trade, most of which gets factored in while setting up a distribution network for business.

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Susan88 Member since 7 year ago documents sold. Similarly Red color means beautiful in Russia where as in rest of world it has different connotation. This framework can help to identify the ways in which potential markets may be distant from existing ones. Analysis Ghemawat develops a novel methodology, complete with an understandable schematic the CAGE diwtance and the concept of distance in assessing foreign expansion opportunities for different companies. Differences in religious beliefs, race, social norms, and language are all capable of creating distance between two countries.

Distance still matters. The hard reality of global expansion.

Offline Computer — Download Bookshelf software to your desktop so you can view your eBooks with or without Internet access. Dazzled by the sheer size of untapped markets, stilp lose sight of the difficulties of pioneering new, often very different territories. Description Table of Contents Author s Bio. Watch out are companies that find geography a barrier to trade are often expected to switch to direct investment in local plant and equipment as an alternative way to access target pankxj.


Competitive advantage and strategy in an international business. Addendum – Dixie State University.

Distance still matters. The hard reality of global expansion.

The rule of thumb is farther you are from a country, the harder it will be to conduct business in that country. More courses of Bedrijfskunde – Vrije Panksj Amsterdam.

sgill Global strategy course overview. In class we focused a lot on culture as an important factor when considering international expansion for company or employee career.

We provide complimentary e-inspection copies of primary textbooks to instructors considering our books for course adoption. Mapping Skills and Activities with Children’s Literature. Toggle navigation Additional Book Information. Everything you need to know about selling on Stuvia.

Please accept our apologies for any inconvenience this may cause. The Hard Reality of Global Expansion advertisement. Then, he demonstrates the usefulness of the framework with a practical case of a company that identified a better market for expansion by factoring in the effects of distance.