Know the reasons why CAGE analysis emphasizes distance. Pankaj “ Megawatt” Ghemawat is an international strategy guru who developed the CAGE . Pankaj Ghemawat. What Are the Real Pankaj Ghemawat. How Global Are The CAGE Distance Framework. Cultural. Distance. Culture happens to be the first facet of CAGE, in terms of the acronym, but it also CAGE Framework, MBA discussions, Pankaj Ghemawat.

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British politician and statesman known for his leadership of the United Kingdom during the…. Facebook has more than million users that makes it the 3rd largest country in the world.

How to choose foreign countries. By contrast, similarities along these dimensions suggest great potential. This page was last edited on 12 Septemberat Leave a Reply Cancel reply Your email address will not be published.

Ghemawat emphasizes that different types of distance matter to different extents depending on the industry. Such models “resemble Newton’s law of gravitation in linking interactions between countries to the product of their sizes usually their gross domestic products divided by some composite measure of distance.

Distinct cultural differences are observed around the following dimensions: Different languages Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions.

Pankaj Ghemawat: Differences and the CAGE Distance Framework

How far apart are trading partners in physical terms: The table [4] [5] shown below provides more detail on each of the CAGE categories, and how they can manifest themselves depending on whether one is comparing a pair of countries or looking at one in isolation. Views Read Edit View history. It should be a crucial consideration for a consumer goods or media company, but it is much less important for a cement or steel business. Landlockedness Lack of internal navigability Geographic size Geographic remoteness Weak transportation or communication links.


Because they affect fundamental business practices, they often affect the competitive position of firms as well. Comment Name Email Website.

Pankaj Ghemawat

One of the distinctions between the CAGE Framework and other country analysis frameworks is its inclusion of bilateral as well as unilateral factors. Is value frmework by Venture Capitalists a reality or myth?

Ghemawat offers some advice on how the CAGE Framework can help managers considering international strategies:. The impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models. Application of the CAGE framework requires managers to identify attractive locations based on raw material costs, access to markets or consumers, or other key decision criteria.

One method to conduct quantitative analysis of this framewkrk is to discount specifically, divide raw measures of market size or potential with measures of distance, broadly defined. From Wikipedia, the free encyclopedia.

Also, types of distance af- fect industries differently. Related Posts 18 Jul. For instance, a firm maybe most interested in markets with high consumer buying power, so it uses per capita income as the first sorting cue. The hard reality of global expansion. Around 2, years ago, Greek philosopher Heraclitus of Ephesus had pronounced: Because geographic distance, for instance, affects the costs of transportation, it is of particular importance to companies dealing in heavy or bulky products.


For example, it can help explain the strength vramework Spanish firms in many industries across Latin America. Each dimension of CAGE is described below. By analyzing the possible impact of dis- tance—in all its dimensions—you sweeten the odds of investing in profitable foreign markets.

Retrieved from ” https: Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level. The more two countries differ across these dimensions, the riskier the target foreign market.

This has been one of the biggest barriers, for instance, in the way of U. Whatever it is… there is no denying the fact that…. The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries.

The complete article reference is here: If you know the enemy and know yourself, you need not fear the result of a hundred battles.