CAGE Distance & AAA Global Strategy
Also known as: CAGE Framework · Adaptation-Aggregation-Arbitrage · Semi-Globalization
The world is semi-global; manage Cultural, Administrative, Geographic, and Economic distance — don't assume it away.
Argues borders still matter and cross-border value depends on distance across four dimensions (CAGE). Firms respond with three global strategies — Adaptation (adjust locally), Aggregation (capture scale across regions), and Arbitrage (exploit differences) — chosen to fit the relevant distances.
Core concepts
CAGE DistanceSemi-GlobalizationAAA Strategies
Best when
- Considering expanding abroad and weighing which markets and how
- A naive 'one global model' is being assumed
Watch-outs
- Analysis-heavy; needs real country data