Global Markets Complexity Index

A Guide for Multinationals Navigating Expansion and Contraction

The GMCI is a framework for geographic footprint strategy that helps multinationals navigate international expansion and contraction. Explore the analysis of market, operational, and regulatory complexity across 100 countries in the third annual report and interactive map.

 

GMCI Interactive Map

Download the GMCI 2022 report

GMCI 2022 Cover

 

Interactive: Explore our 8 GMCI complexity groupings

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.

3D Plot of 100 Countries in their GMCI Complexity Groups
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How to compete and win in new markets

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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Geographic Strategy

Calculate your Geographic Footprint Complexity Score 

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.

Calculate Your Score

CFS Graph

To be successful, understand your core

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.

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Leverage your core

GMCI has garnered notable media attention

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.

SCHEDULE A CALL WITH A GMCI AUTHOR >

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Case Study

We help companies find new sources of profitable growth in complex environments

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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5 Things multinationals with successful market entries get right

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BE
DELIBERATE

Choose wisely and take country complexity into account.


Example:
 The allure of India’s large population, fast growth, and relative wealth is attractive to many Western companies, but its high complexity has led to high-profile retreats, such as Walmart and GM.

 
PACK
LIGHT

Minimize risk by ensuring an easy exit is feasible. Carefully consider the mode of entry and market selection.


Example:
Uber kicked‐off operations in Bulgaria with only two local employees. When faced with prohibitive regulatory complexity, Uber cut losses and made a swift exit.

 
BYPASS THE
CONGESTION

Bypassing traditional channels may be successful in countries with high market and operational complexity.
 


Example:
 Companies like Amway have entered and grown quickly in complex countries. Their salesforce swiftly expands into rural areas and bypasses negotiations with local distribution channels. 

 
ESTABLISH AN
AWAY BASE

Start with one of the small jewels and use it as a platform for regional coverage.


Example: 
Small countries have inherent advantages—less diversity in consumer tastes, concentrated populations in urban areas, and fewer challenges transporting products. 

 
TAKE
A MAP

Moving from low- to high-complexity groups requires new skills and resources.
 


Example:
 IKEA’s expansion, while gradual, is noteworthy for how it follows the GMCI roadmap.

Download the GMCI 2022 report

GMCI 2022 Cover

Learn how to improve your geographic strategy.

Start the conversation

Contact the GMCI Leadership Team

Stephen W
Stephen Wilson
Managing Partner
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Scott Stallbaum

Engagement Director
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Lee Johnson

Case Team Leader
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Jeannie Elliott
Marketing Director
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Dave Hoogmoed
Dave Hoogmoed, President Land O’Lakes Purina Feed
“Wilson Perumal & Company's approach treats complexity as the enemy. Declaring war is the most direct route to an efficient, profitable enterprise. We declared war on the complexity in our portfolio, resulting in streamlined customer offerings and a more nimble business.”
Ed Lonergan
Ed Lonergan, President and CEO Diversey, Inc.
“This was a quick and painless way to understand our true product profitability, and it challenges how we think about our business. I am extremely pleased with the results.”
Fernando Palacios
Fernando Palacios, EVP and Chief Integrated Supply Chain Officer MillerCoors LLC
“WP&C’s insights into our portfolio, cost structure and growth drivers have changed the way we think about our business. The brand management playbooks they developed for the business will be critical to how we make decisions going forward.”
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Hilliard Lombard, Managing Director Valeo Foods Group Ltd.
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Peter Benton, COO Worldwide Clinical Trials, Inc.
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Rupert Pearce, CEO Inmarsat plc
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Bill McNabb, CEO Vanguard Group, Inc
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New!

Growth in the Age of Complexity

In our latest book, learn how to navigate the Sirens of Growth and build true scale in today’s new era of competition.

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