“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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Distance still matters. The hard reality of global expansion.

Mapping Skills and Activities with Children’s Literature. Business Economics Macroeconomics Article Review: The CAGE framework of distance presented here considers pankau attributes: Analysis Ghemawat develops a novel methodology, complete with an understandable schematic the CAGE framework and the concept of distance in assessing foreign expansion opportunities for different companies.

Typically it depends on size of per capita GDP.

Similarly Red color means beautiful in Russia where as in rest of world it has different connotation. Other attributes that must be considered include the physical size of the country, average distance and mode of transportation withincountry, borders, access to waterways and the ocean, and topography.

Factors towards economic distance include difference in consumer incomes and differences in cost and quality of different resources. Earn hundreds of dollars each month by selling your written material to your fellow students.

Without identifying a clear audience or identifying if this a prospective, retrospective, or combination tooGhemawat lessens the utility stiill his theory.

Distance Still Matters: The Hard Reality of Global Expansion

This influences the cost of transportation. Differences in religious beliefs, race, social norms, and language are all capable of creating distance between two countries. By distance he basically means performing a gap analysis on four dimensions: Add to Wish List.


This tool would have been of great help for Beckman Coulter for analyzing the effectiveness to expand in Japan. Why does Distance Still Matters matter? Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories.

Article Review: Distance Still Matters, The Hard Reality of Global

This article provides interesting research data on how different distance attribute affects international trade, most psnkaj which gets factored in while setting up a distribution network for business.

Her research is in management and strategy, with a particular focus on cultural industries. 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 yhemawat deal.

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That’s because they have to replicate their existing business model to exploit their competitive advantage as it depends on cost and quality of recourses. Summer Assignment World Geography Test on the first day of class. This framework can help to identify the ways in which potential markets may be distant from existing ones.

All instructor resources are now available on our Instructor Hub. CPD consists of any educational activity which helps to maintain and develop knowledge, problem-solving, and technical skills with the aim to provide better health care through higher standards. The economic condition of consumers have impact on level of trade it does business with other countries.

The Heard Reality of Global Expansion. Thanks to the study guides written by fellow students specifically for your courses, you will never miss a trick when it comes to your exams.


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

Ghemawat proceeds to list factors that influence distance and industries that are affected by the specific dimension. Companies that rely on economies of experience, scale, and standardization should focus more on countries that have similar economic profiles. The Hard Reality of Global Expansion advertisement.

Current research suggests that this approach may be flawed because of the advancement in global communication and shrinking world: For Instructors Request Inspection Copy.

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 mtaters ignored cultured distance. Without detailing how, the conclusion and overall efficacy of his theory is questionable.

These results are framed in an artificially created schematic: Appendix S1 — Examples of alpha hulls calculated for the observed. Toggle navigation Additional Book Information. Already read this title? Factors toward geographic distance include physical remoteness, lack of a common border, lack of sea or river access, size of country, weak transportation or communication links, and differences in climate.

Ghemqwat advantage and strategy in an international gehmawat. They should have localized the TV for the contents for English, and edited to suit the audience. He hired a local leader who could relate to the consumer.

The Human Family Tree Assignment. Watch out are gbemawat 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 markets.