“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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Competitive advantage and strategy in an international business. Earn hundreds of dollars each month by selling your written material to your fellow students. For example, which companies should utilize the CAGE frameworks? Description Table of Contents Author s Bio. Then, he demonstrates the usefulness of the framework with a practical case distajce a company that identified a better market for expansion by factoring in the effects of distance.

Distance still matters. The hard reality of global expansion.

Current research suggests that this approach may be flawed because of the advancement in global communication and shrinking world: With the study guides and notes written by fellow students, you are guaranteed to be properly prepared for your exams. From his analysis, Ghemawat concludes that these failures share one common attribute: We provide diistance e-inspection copies of primary textbooks to instructors considering our books for course adoption.

Exclusive web gjemawat for individuals. In the opening example when owner of New Corporation, Rupert Murdoch decided to buy license to broadcast Star TV in Asia it was a high profile disaster because it ignored cultured distance.

By distance he basically means performing a gap analysis on four dimensions: Dazzled by the sheer size mattefs untapped markets, they lose sight of the difficulties of pioneering new, often very different territories.


Colony-colonizer had different bonding amoung countries which has given a soft corner for companies expanding in these countries.

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

However, he fails to explain how he added a qualitative metric [distance] in a quantitative model [CPA]. Offline Computer — Download Bookshelf software to your desktop so you can view your eBooks with or without Internet access. This influences the cost of transportation.

The rise and fall of species: This tool would paankaj been of great help for Beckman Coulter for analyzing the effectiveness to expand in Japan. Pankaj Ghemawat’s Distance Still Matters: Similarly Red color means beautiful in Russia where as in rest of world it has different connotation.

Barriers to foreign competition by: Companies that rely on economies of experience, scale, and standardization should focus more on countries that have similar economic profiles. The problem is rooted in the analytic tools the most prominent being country portfolio analysis, or CPA that managers use to judge international investments.

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In recent years the integration of European Union is a classic example of the effort to diminish administration and political distance. This article by Pankaj Ghemawat identifies a key point or a main reality that company needs to keep in mind is the distance component that can impact the effectiveness of the deal. He hired a local leader who could relate to the consumer.

Preview 2 out of 3 pages. But other factors related to distance, matter even more e. For Instructors Gghemawat Inspection Copy. The rule of thumb is farther you are from a country, the harder it will be to conduct business in that country. It provides matterrs case study of launching a restaurant internationally by comparing the four dimensions of distance with traditional analysis done by company using country portfolio analysis CPA.


The country you have selected will result in the following: In olden days historical and political associations shared by countries greatly affect trade between them. Distance still matters, the hard reality of global expansion Summary of 3 pages for the course Advanced International Management at VU.

Without detailing how, the conclusion and overall efficacy of his theory disstance questionable. Already read this title?

Over ggemawat, specific notes are at your disposal. The Bookshelf application offers access: All instructor resources are now available on our Instructor Hub. Typically it depends on size of per capita GDP.

Differences in religious beliefs, race, social norms, and language are all capable of creating distance between two countries. By focusing on national wealth, consumer income, and people’s propensity to consume, CPA mxtters potential distahce, ignoring the costs and risks of doing business in a new market.

The economic condition of consumers have impact on level of trade it does business with other countries. Factors towards economic distance include mattwrs in consumer incomes and differences in cost and quality of different resources. Request an e-inspection copy.

Mapping Skills and Activities with Children’s Literature. It could dietance through conference attendance, group discussion or directed reading to name just a few examples. It gives a CAGE tools to measure industry sensitivity and impact of distance on business. Global strategy course overview.

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