Global markets are increasingly shaped by power politics, trade conflicts and security issues. The white paper “Building Geopolitical Muscle 2026” shows why companies need to systematically build up geopolitical expertise not just to avoid risks, but as a strategic advantage.
The joint project by BCG, the World Economic Forum and the IMD Business School shows that the phase of largely stable, rule-based globalization is over. It is being replaced by a fragmented world order in which economic decisions are increasingly influenced by political interests, security considerations and geopolitical alliances. Sanctions, trade restrictions, regional power blocs and technological decoupling are changing the rules of the game for internationally active companies. The white paper makes it clear: geopolitics is no longer an external disruptive factor, but a key driver of entrepreneurial value creation
From reacting to anticipating
Until now, many companies have mainly treated geopolitical risks reactively and as part of traditional risk management. This is no longer enough. Those who only react to crises lose time, market share and strategic options. A change of perspective is required: geopolitical developments must be identified at an early stage, systematically analyzed and translated into strategic decisions. “Geopolitical muscle power” means not just observing political signals, but actively incorporating them into planning, investments and business models.
Geopolitical competence as a management task
The white paper emphasizes that geopolitical issues must not remain in isolated analysis departments. They belong on the agenda of the executive board and board of directors. Only if top management assumes clear responsibility can geopolitical considerations be consistently integrated into corporate strategy, location decisions, supply chains and market entries. Geopolitical competence thus becomes a management task, comparable to digitalization or sustainability.
Organizations must become adaptive
Geopolitical muscle is not created by a single project, but by lasting organizational capabilities. Companies need structures that continuously record and evaluate political and economic signals from different regions of the world. At the same time, these findings must be incorporated into decision-making processes, such as investment decisions, M&A strategies, partnerships or the design of supply chains. The combination of analysis and implementation is crucial: knowledge without action remains ineffective.
Talents who understand politics and business
The white paper also focuses on leadership and talent development. Geopolitical competence requires profiles that combine economic thinking with political understanding. Companies need to develop or recruit managers who can understand global power shifts, regulatory trends and security policy developments. This expertise must not only have an advisory function, but must also be part of operational decision-making.
Opportunities in fragmentation
Geopolitical muscle is not just about damage limitation. Those who recognize geopolitical dynamics early on can also gain competitive advantages from them. New alliances, government support programs, regional industrial policies or regulatory shifts open up opportunities for companies that act quickly and in an informed manner. In a fragmented world, companies that can flexibly adapt their strategy to political realities are the winners.
Strategy needs geopolitical thinking
The white paper makes it clear that geopolitics is not a special topic for times of crisis, but a permanent component of modern corporate management. Companies that build up geopolitical muscle not only increase their crisis resilience, but also their strategic ability to act. In a world of growing uncertainty, it is precisely this ability that will determine who remains successful in the long term.
Binci Heeb
Read also: Between crisis and progress: my review and outlook
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