CAGE Framework ...

Distance between two or more countries is due to

Cultural= language

ethnicities

religion

values

Administrative=laws

political risk

government structure

Geographic=country size

infrastructure

climate

remoteness from neighboring countries

Economic=national income

costs of doing business

prices

availability of human and natural resources

Ethnocentric

Focus on the home market

Domestic strategies are superior to foreign ones
Domestic strategies are applied in foreign markets and overseas operations
No systematic marketing screening to search for foreign markets

Polycentric

Decentralized management
Affiliates develop their own marketing strategy
Mindset of management is focused on host country
Marketing strategies must be adapted to the specific needs of the market
Little room for standardized marketing
Overseas markets are screened individually
Marketing activities are organized and carried out country by country (e.g. Ford Escort)

Regiocentric

A particular region is viewed as comprising a single market

Regional trade areas are the focus of marketing activities (e.g. EU, NAFTA, Mercosur)
Attempt to develop and implement marketing strategy for all countries in a region
Standardization wherever possible (e.g. Toyota)

Geocentric

Attempt to implement global marketing by integrating worldwide operations

Products and brands are produced in large volumes to achieve economies of scale
Standardized product, brand, image, positioning with minimal adaptations
Acquire and share knowledge among the various components of the global network to sustain
competitive advantage