Beware going global!

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Also at the SMS conference, Pankaj Ghemawat reviewed some of the recession’s impact on globalisation trends, a talk that included a useful warning. Big indicators, like the rate of Foreign Direct Investment, have slowed sharply with the down-turn, but no worse than last time. But he warned of some additional dangers this time:

  • a risk of more protectionism due to more widespread job losses and distrust of business
  • massive public debt slowing recovery
  • shortage of finance

The intriguing content concerned the still remarkably ...

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Foreign market entry

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Another gem from SMS – unpublished as yet – by Fjeldstad, Gao and Burkay of BI Norwegian School of Mgmt. How come Google and eBay, dominant global players in their sectors, both got killed by local rivals in China – AliBaba and Baidu  [in eBay’s case, in spite of acquiring a strong Chinese firm]?

Seems from extensive analytical research and interviews with top management in both sectors, it was because they misunderstood the ‘value network’ model – thinking it was ...

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