Crossing borders in a world where differences still matter, pankaj ghemawat, harvard business school press, 2. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. In this case, distance is defined broadly to include not only the physical geographic distance between countries but also the cultural, administrative currencies, trade agreements, and economic differences between them. Yet ghemawat contends that despite the benefits and ease of technology, human behaviour still matters, distance still matters, and yes, borders still matter and these factors overwhelm the perception of a small, frictionless world. Does distance still matter in intraeuropean partnerships. In other words, ghemawat takes issue with the idea that national borders are eroding and that we are all just living in one world. By pankaj ghemawat distance still matters presented by kedar gokhale pgdm exec kj somaiya1 2. Pankaj ghemawat is the jaime and josefina chua tiampo professor of business ad ministration at harvard business school. Ghemawat analyzes the failures of different companies news corp, tricon restaurants, etc.
Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news. Its one that david livingstone first floated back in the 1850s, and one thats been popularized by writers such as thomas friedman. This chapter is excerpted from pankaj ghemawat, world 3. The framework was developed by pankaj ghemawat, a professor at the. In other words, more than 90 percent of the fixed investment around the. He also shares examples of other wellknown companies that have failed at this challenge. Whats the topic companies routinely exaggerate the attractiveness of foreign markets and that can lead to expensive mistakes. Summary pankaj ghemawats article, distance still matters. As summarized in table the cage framework, the cage cultural. Adaptation strategies strategies that seek to increase revenues and market share by tailoring one or more components of a firms business model to suit local requirements or preferences. It may seem that were living in a borderless world where ideas, goods and people flow freely from nation to nation.
In particular, administrative, geographic, economic and technological distance appears to play a key role, whereas cultural distance does not seem to influence the choice of partners. Crossing borders in a world where differences still matter by pankaj ghemawat harvard business school press boston,massachusetts isbn. Offline computer download bookshelf software to your desktop so you can view your ebooks with or without internet access. The hard reality of global expansion by pankaj ghemawat slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The gci measures trade, capital, information, and people flows across 140 countries. Ghemawat underlines psychic distance still matters and demonstrates the effect using the example of media attention to tragedies for usa media, one.
He also shares examples of other wellknown companies that have failed at. Citing evidence from his primary research on the subject of globalisation, ghemawat argued that we are a lot. Because geographic distance, for instance, affects the costs of transportation, it is of particular importance to companies dealing in heavy or bulky products. Differences between croatia and eu candidate countries. Sorry, we are unable to provide the full text but you may find it at the following locations. Distance still matters, and companies must explicitly and thoroughly account for it when they make decisions about global expansion. Companies routinely overestimate the attractiveness of foreign markets. Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news corporation bought out.
They loose sight of the difficulties of pioneering new. Download it once and read it on your kindle device. Nov 27, 2012 distance still matters, and companies must explicitly and thoroughly account for it when they make decisions about global expansion. Global prosperity and how to achieve it, and he takes the stage to ask an important question. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 distance still matters. Popular perceptions today are that the world is shrinking, technology is reducing the barriers to distance, and national borders are increasingly unimportant. The more two countries differ across these dimensions, the riskier the target foreign market. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. The hard reality of global expansion 12 further reading a list of related.
Cultural distance, on the other hand, affects consumers product preferences. Altman release the dhl global connectedness index gci biennially. This chapter discusses whyif at allfirms should globalize in a world in which distance still matters. If you continue browsing the site, you agree to the use of cookies on this website. The hard reality of global expansion companies routinely overestimate the attractiveness of foreign markets. In the semiglobalized world, however, global strategy begins with noticing national differences. Distance still matters the hard reality of global expansion by pankaj ghemawat. This note introduces the cage distance framework, which is used to identify and prioritize the differences between countries that companies must address when developing crossborder strategies. Distance still matters trade china free 30day trial. Begin by considering the example summarized in exhibit 21, which plots walmarta s operating margin by country in 2004 against the distance between each countrya s capital and walmarta s headquarters. Distance still matters 3 ghemawat p distance still. Distance still matters by pankaj ghemawat pdf download 157d49.
The authors of this article studied global expansion and found common mistakes that companies make when entering a new market. Pankaj ghemawat world 3 0 pdf pankaj ghemawat world 3 0 pdf pankaj ghemawat world 3 0 pdf download. The hard reality of global expansion discusses the reasons and rationale that drive companies to overestimate profit potential in foreign markets. In this work, ghemawat proposes the cage distance framework that. Pankaj ghemawat coined a new phrase in his talk from tedglobal. Distance still matters by pankaj ghemawat pdf download. By contrast, similarities along these dimensions suggest. Manorama six feet under in hindi pdf book download. Redefining global strategy pankaj ghemawat download. The cage distance framework identifies cultural, administrative, geographic and economic differences or distances between countries that companies should address when crafting international strategies.
An analysis of pankaj ghemawats distance still matters. With great data and an eyeopening survey, he argues that theres a delta between perception and reality in a world thats maybe not so hyperconnected after all. Pankaj ghemawat pdf professor ghemawat devised the renowned dhl global connectedness. Download free cage framework pankaj ghemawat pdf ticketletitbit. It may also be used to understand patterns of trade, capital, information, and people flows. Borders still matter, according to pankaj ghemawat, author. Chapter 2 discussed the similarities versus differences between countries and worked through the cage distance framework as a way of understanding how much they matter at the country and industry levels. Ghemawat emphasizes that different types of distance matter to different extents depending on the industry. By contrast, similarities along these dimensions suggest great potential. Its a notion ghemawat says was first floated in the 1850s by david livingston, the scottish explorer who traveled the nile. According to ghemawat, it would be domestic strategy applied to a bigger market. Tarqashha basketful of fiery dreams malayalam movie free download utorrent. Author pankaj ghemawat on global expansion for small.
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