WP&C's latest research into optimizing your geographic portfolio was published by MIT Sloan Management Review. Building on insights generated by our Global Markets Complexity Index (GMCI) developed in partnership with the Wall Street Journal, authors Stephen Wilson (Managing Partner) and Megan Beck (Manager) explore how the country mix a company chooses to compete in impacts their success.
When executed well, geographic expansion provides companies with access to new markets, customers, and revenue streams. Companies frequently underestimate the complexity of expansion, however, leading to profit dilution and slower growth. Until now, multinationals have had to navigate expansion decisions absent a strong fact-based framework. To add substance to this debate, WP&C analyzed the market, operational, and regulatory complexity of 83 countries across 31 factors, and then used machine learning to group these countries by level of complexity.
We have also innovated a new metric that any company can calculate—the Footprint Complexity Score—and we have demonstrated its correlation with a company’s operating profit. As companies size up potential strategies in preparation for a possible economic contraction, this framework and data offer companies a chance to quantify the opportunity from consolidating their footprint. Learn how by reading our latest research published by MIT Sloan Management Review.