Building Your Company’s Capabilities Through Global Expansion

To create and sustain a global competitive advantage, companies need a systematic approach to exploiting, renewing and enhancing their core capabilities.

BY DONALD LESSARD, RAFAEL LUCEA AND LUIS VIVES

GLOBAL COMPETITION is becoming tougher and more complicated than ever. Over the past 30 years, sharp declines in communication and transportation costs and the reduction of trade barriers have reshaped the global economy. Major new markets continue to open. Supply chains are becoming increasingly deverticalized and geographically dispersed. In many industries, new emerging-market competitors are now challenging established multinationals. Indeed, the global competitive landscape is becoming ...