Distance Still Matters Essay Example

Distance Still Matters: The Hard Reality of Global ExpansionTool KitDistance Still Matters: The Hard Reality of Global Expansion
Companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive mistakes.

Here’s a more rational approach to evaluating global opportunities. by Pankaj Ghemawat When it was launched in 1991, Star TV looked like a surefire winner. The plan was straightforward: The company would deliver television programming to a media-starved Asian audience. It would target the top 5% of Asia’s socioeconomic pyramid, a newly rich elite who could not only afford the services but who also represented an attractive advertising market. Since English was the second language for most of the target consumers, Star would be able to use readily available and fairly cheap English-language programming rather than having to invest hea