The Cultural and Economic Distance factor into the Market Attractiveness Framework by influencing the ease of market entry and the potential profitability of a venture. Cultural distance refers to the differences in language, customs, and social norms between the home market and the target market. A greater cultural distance can make it more challenging to understand and meet the needs of customers in the target market. Economic distance refers to differences in economic development, market size, and market growth rate. A greater economic distance can mean higher costs and risks associated with market entry, but it can also mean greater potential for profit if the venture is successful.
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