Entrepreneurs Path to Global Expansion Harvard Case Solution & Analysis

Most new companies today consider overseas expansion since the beginning. However, according to the author, the entrepreneurs and their managers often underestimate the cost of the expansion and the lack of a clear conceptual framework for this. Through the study of 50 business in more than 20 countries, the author comes to the conclusion that such enterprises are the various ways to expand. The most successful are those that best manage the constant tension between resources and capabilities, all of which run the gamut from purely local around the world. The proposed structure, which determines the choice of the company has at its inception and throughout its life, and shows how to use the framework to evaluate and direct the company develops and ease the tension, anticipating the various strategic, financial, organizational and regulatory factors. Uses case examples of software companies that have adopted a balanced or "diagonal" path (the most common), air cargo delivery service, which has progressed from pursuing local opportunities with local resources conducting cross-border opportunities with local resources, and consumer credit provider, who began by of local capacity of local resources, and then added a transboundary resources. "Hide
by Walter Kuemmerle Source: MIT Sloan Management Review 10 pages. Publication Date: January 1, 2005. Prod. #: SMR160-PDF-ENG

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