MIT Sloan Management Review Article on Why Multinationals Should Consider Geographic Complexity First

Many companies underestimate the operational complexity of expanding to new countries — which can have disastrous costs.

For the past few decades, companies looking to grow have frequently turned to overseas expansion. Executed well, such a move can provide a company with access to new markets, customers, and revenue streams. Occasionally the gambit fails quickly, and these high-profile exits make headlines, like when Dunkin’ Donuts left South Africa after two short years and Walmart pulled the plug on Brazil after a 20-year struggle. Other times, the results are merely lackluster, and companies can accumulate a portfolio of so-so geographies that slowly and subtly erode profitability.