Coursera – Globalization of Business Enterprise

courseraFantastic course!  I was completely incorrect in my understanding of the world – and I was not alone… 🙂  Many people do not completely understand the state of globalization and tend to overestimate it (proponents and opponents of the globalization alike).

The most hilarious term to describe this state is globaloney – and, yes, my head was full of it!

The course highlighted the level of misunderstanding and popularization of common beliefs among business and population in general.  Majority of people believe that the world is closer to being “flat,” what data suggests is rather incorrect.


The “World 3.0” approach suggests that the world’s interactions are influenced by several factors, which will predict how two particular countries behave in the economic sphere.  Four points comprise the CAGE Distance Framework: Cultural, Administrative, Economic, and Geographic distance.


The CAGE Distance Framework can be helpful in predication of international expansion of a business and success of this  expansion.



Businesses are advised to understand the differences between their company’s home country and potential international expansion and take them into consideration.  The AAA strategy is recommended, when a company can consider all three approaches, but should find one that can differentiate it from its competitors.

  • Adaptation (understanding that the other country is different and adapt approach to its preferences – example is a variety of drinks Coca Cola produces in Japan that are very unique in flavor)
  • Aggregation (combining some approaches for several similar countries, etc. – example is Toyota creating a series of vehicles on a larger frame demanded by US penchant for tracks)
  • Arbitrage (exploiting differences – example of the difference in pay of knowledgeable Indian programmers and their European and American counterparts that allow Indian companies to provide outsourcing services)



One of the interesting parts is difference of the application of approaches by established global companies and emerging ones.


One of the major points of the strategy approach is to understand the differences, as many strategies created with significant influence of globaloney on the decision makers.


It would be helpful to read the book Redefining Global Strategy to learn more…   It is now on my future reading list 🙂

MIMA – Joe Kutchera – Localization and Internationalization – Spanish-Language Markets

dotGlobalJoe Kutchera  gave a very insightful presentation  about developments and challenges of Spanish-language markets.

Ideas from the presentation:

Term “g-commerce” – global e-commerce

Touch of globalization: HomeDepot created a web site in Spanish and took it down after several months. Most of the visitors were coming from the outside of the US and could not purchase anything. Best Buy also has a Spanish language site, where it sees visitors from Latin America who do not necessarily buy; however, some show up in the stores with printouts from the site. Many Spanish language US sites receive significant portion of traffic from abroad.

Where Hispanics live in the US? An interesting advertising campaign – In an Absolute World


The obstacle: Spanish speaking people throughout the world find attractive goods on American web sites (and the goods are cheaper than in their countries); however their credit cards can not be used for purchases and shipping is very expensive if possible at all. But people abroad also want to shop!  Some do purchase and ship the goods to their American relatives addresses (to pick up when they travel to the US).

Global trends

Current map of internet penetration of the world  does not represent population numbers and most common spoken languages.


However, the price of computers is trending down and soon the current “map” will change. At that point different cultures and languages will become more important.

Practical advice: for some businesses specifically targeting people who live in Mexico and coming to the US to shop might be very beneficial.

Joe Kutchera’s company site dotGlobal  is an excellent resource for anybody interested in international e-commerce.

PortadaAnother resource: Portada – Latin advertising, marketing, and media magazine.   The magazine was available at the event.