What is the CAGE Distance Framework?
The CAGE Distance Framework is a tool that helps companies to systematically analyze the differences between home and target markets. Developed by Pankaj Ghemawat, it focuses on four key dimensions: cultural, administrative, geographical and economic distance. These distances influence how easy or difficult it is for a company to enter a new market and operate successfully. The framework helps to better understand complex market conditions by showing which factors could make trade or expansion more difficult. This enables companies to make informed decisions and adapt their internationalization strategies accordingly.
Dimensions of the CAGE Distance Framework
The dimensions of the CAGE Distance Framework help to systematically analyze differences between countries. The cultural dimension highlights values and norms that shape business relationships, while the administrative dimension looks at legal and political factors that influence market access. Geographical aspects such as distance and infrastructure affect logistics and communication. The economic dimension examines differences in prosperity, purchasing power and economic development that determine market opportunities. These four perspectives enable companies to better understand the challenges and opportunities of international markets and to adapt their strategies accordingly.
The advantages of the CAGE Distance Framework
The CAGE Distance Framework offers companies numerous advantages, especially when analyzing international markets. It enables a structured consideration of country-specific differences in the areas of culture, administration, geography and economy. This comprehensive analysis helps to identify and overcome potential barriers to market entry at an early stage. Companies can thus make well-founded decisions, minimize risks and better adapt their expansion strategies to the conditions of a target market. In addition, the framework supports the identification of competitive advantages and the selection of suitable market entry strategies, which increases the chances of success in international business.
Everything about the CAGE Distance Framework in one template
Our PowerPoint template provides you with important information and visually appealing templates on the topic of the CAGE Distance framework. Understand the individual dimensions of the framework with clear examples and use our detailed application example to carry out your own CAGE Distance analysis. Weigh up your expansion plans in detail and convince your key partners with professionally designed presentation slides. Download our PowerPoint template today!
With this template for PowerPoint you will …
- present important information about the CAGE Distance Framework.
- receive a detailed application example.
- visualize your results on selected CAGE Distance templates.
This PowerPoint template contains:
- Quote
- What is the CAGE Distance Framework?
- Definition of
- The four dimensions
- Pankaj Ghemawat and his findings
- Significance of the CAGE Distance Framework
- Objectives of the CAGE Distance Framework
- Advantages of the application
- Limitations of the framework
- Best Practices
- Dimensions of the framework
- CAGE Distance table
- Cultural distance
- Administrative distance
- Geographical distance
- Economic distance
- Unilateral factors
- Bilateral factors
- Application example
- Germany and India
- Results on cultural distances
- Results on administrative distances
- Results for geographical distances
- Results for economic distances
- Results table
- Strategy proposals
- Points system for the country comparison
- Supplementary tools and methods
- Porter's five forces analysis
- SWOT
- PESTEL
- Business Model Canvas
- Shift model according to Hofstede
- Scenario analysis
- Templates
