The VCW-Value Creation Wheel: A Framework for Market Selection and Global Growth
Executives spend considerable time looking for solutions to deal with paradox challenges. However, there is a lack of practical frameworks to deal with their specific needs, namely: How to select the most attractive international market in the presence of so many choices? How to benefit from economies of scale while satisfying local needs? How to explore the true potential of products/services in the target markets? How to explore a company’s growth potential in the presence of limited resources? How to provide international customers the same level of service given to the domestic ones? Over the last two decades, the VCW-Value Creation Wheel helped firms to deal with the paradox of choice and helped executives find solutions for these and many other challenges. This chapter demonstrates how the VCW meta-framework has been successfully implemented by firms to deal with international challenges while incorporating the insights of key decision makers and inputs from key internal and external stakeholders. VCW’s implications for research and practice are discussed.
The first author acknowledges all the executives, scientists, and students who contributed during the last two decades with many insights for VCW’s advancement. He also acknowledges FCT Research Grants for his Doctoral (Warwick University, 1996–2000) and Post-Doctoral (MIT and Stanford University, 2000–2001) studies, the support of the MIT-Portugal program, while a Visiting Scholar at the MIT Deshpande Center for Technological Innovation (2007, 2015, 2016, 2017), and the Lisbon MBA while a Visiting Faculty at MIT Sloan School of Management (2010). Additionnaly he acknowledges the comments of C. Cooney (MIT), A.M. Guerin (IAE-AIX), R. Hartmann (UAS-Aschaffenburg), J. Huffstot (Nova SBE), S. Jahanmir (MIT), P. Kim (Babson College), C. Lages (Nova SBE), J.B. Macedo (Nova SBE), C.R. Marques (ISEGI), F. Piller (RWTH Aachen University/MIT), and A. Ricard (IAE-AIX). The author also acknowledges the contribution and the data collected by M. Abu-Gebba, A. Ancion, A. Singh and U. Somayajula for the Tom & Co case, and the work of P. Adam, E. Braudeau, T. Kimura, D. Leal, M. Piñero, and J. Ranfaing for the VCW’s EMBA case about where to go in the finalists’ trip.
Vânia Fonseca was in charge of applying the VCW framework to the Deimos’ challenge under the guidance of the first author. She acknowledges N. Ávila, N. Catarino, M. Felizardo, and A. Gutierrez. Miguel Paulino applied the VCW framework to Whymob under the direction of the first author. He acknowledges H. Ahnfelt and P. Pires. An earlier version of this paper was presented at AMA Global Marketing SIG Cuba (April 2017).
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