Global Strategy

Why should you globalize, if at all?
Globalization is a strategy so complex and subject to so much uncertainty that it is hard to understand if success (and failure) is due to the quality of the execution or pure luck. Yet, companies have this urge to internationalize, pushed by shiny slogans like "bigger is better", "our home market is too small" etc. They have also been nudged by monetary institutions that encouraged them to do large scale FDI and reward then with stock purchases if they did so.



The key to internationalization, and to business' success, is to focus on value-creation. Will our globalization improve value-creation? Can we pull it off? Too often, we associate survival with success and we use it as a proxy to value creation. Instead, we should use the same standard as a single country strategy to evaluate the success of globalization.

The ADDING Value scoreboard
The ADDING value scoreboard is an acronym that should be used to sum the different consequences of a globalization strategy and understand if the rewards are worth the risk. If the upsides compensate for the downsides.
 * Adding volume
 * Decreasing cost
 * Differentiating
 * Improving industry attractiveness
 * Normalizing risks
 * Generating and deploying knowledge