A Guide for Multinationals Navigating Expansion and Contraction
The GMCI was created using a machine learning clustering algorithm to group together countries with similar complexity profiles. The interactive chart below plots 100 countries in three-dimensional space based on their market, operational, and regulatory complexity. Colors represent the eight GMCI groups. Hover over points to identify the country and use the toolbar to rotate, pan, or zoom in and out.
The Wall Street Journal describes the GMCI as an "...index [that] helps identify which countries have similar operating environments so investors—both corporate and financial—can make more-informed decisions on which countries they will be comfortable or capable of operating in.” Quartz frames the GMCI as a new tool to tackle complexity and CFO Magazine and CEOWorld Magazine also featured articles exploring the GMCI's impact.
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Adjacency moves often fail to achieve expected growth and instead deliver yet another layer of complexity and cost. Learn how to avoid common pitfalls and explore alternatives to geographic expansion.
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In the wake of supply chain shocks and reduced demand expectations, companies are taking a more critical view of their geographic footprints. Our research shows that spreading operations across Global Markets Complexity Index groups with varying levels of complexity has a direct, negative impact on operating margin and profit.
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Managing new channels, products, and services adds tremendous complexity and inhibits scale. Companies must develop a geographic strategy articulating how their scale, brand, or capabilities create a unique value proposition for each market and inform where to enter, exit, or remain. Uncover how complexity correlates with profitability and how to develop a 'macro' geographic strategy to win in new markets.
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WP&C developed the Footprint Complexity Score (FCS) to quantify the geographic complexity of a company’s global footprint and measure its correlation to operating profit. Rooted in the Global Markets Complexity Index (GMCI) country groupings, your FCS provides unique insights into the geographic complexity of your operations, expansion, and contraction strategies compared to competitors.
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To compete abroad, companies must understand their core—where and how they truly make money. But most companies do not have an accurate view of which products, segments, and customers make or lose money due to complexity-induced cross-subsidizations. With a true understanding of core profitability, companies can tailor a portfolio for each market that accounts for local preferences without adding unnecessary complexity.
Learn how we helped a global media organization that was losing tens of millions of dollars per year determine how and where to grow to regain profitability, resulting in digital ad revenue growth of more than 50%.Read The Case Study
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“Army personnel credit the collaboration between Joint Munitions Command, CAAA's higher headquarters, and consulting firm Wilson Perumal & Company for identifying areas to improve the munitions distribution process.”
In our latest book, learn how to navigate the Sirens of Growth and build true scale in today’s new era of competition.Download Chapter 1