For companies ready to take their business to the next level of growth—the kind that launches them into new markets and revenue streams—it’s important to understand the ‘why’ behind that growth ambition and where corporate diplomacy fits in.

This essential exercise in identifying inherent logic in a market and determining if that logic fits a company’s core competencies, is what many businesses fail to recognize, according to Joe C. Lopez, Managing Partner, Anchora Advisory.

“If the new market fits your company, the hard work is about to begin, but If the new market does not fit your core competencies, it is best to stop before you ever start,” said Lopez.

Anchora Advisory is a full-service advisory offering custom-tailored, end-to-end services that specializes in new market entry and corporate diplomacy.

“We’re very focused on internationalization and helping our clients grow beyond borders,” said Lopez during a recent podcast, Helping Businesses Scale in a Rapidly Evolving Marketplace. “There’s a lot here in the U.S. we can deliver back to our clients from other countries and vice-versa.” The opportunity for established western businesses in the U.S. and EU to show up in emerging markets in the middle east, Africa and South America is massive, according to Lopez, but only if supported by a sound corporate diplomacy strategy.

The importance of corporate diplomacy (aka commercial diplomacy) is not lost on the U.S. government, who has made it a foreign policy priority. Here’s more from “Six Elements of Economic/Commercial Diplomacy” from the American Foreign Service Association:

In 76 countries representing 90 percent of U.S. export markets FCS and State economic officers are collaborating closely to tackle market barriers and unfair trade practices and protect U.S. investment interests. It is especially encouraging to see numerous examples of Commerce/State cooperation overseas on emerging issues such as digital trade, standards and regulations, intellectual property rights, financing infrastructure and combating corruption.

Anchora is no stranger to this world and is adept at helping its clients navigate this complex terrain, according to Joel Popoola, a partner with the firm with more than 25 years of experience in business development, corporate diplomacy, banking and finance in Africa. “By establishing avenues of collaboration through our multinational expertise, we are able to create a great deal of impact for a company, and economic development for a country, by doing business the right way in these emerging markets,” said Popoola.

Dealing with digital disruption:

In addition to establishing clear path to corporate diplomacy, rapidly changing (and sometimes expensive) technologies like AI is another hurdle for high-growth companies to contend with. This begs the question: Is there a feasible way forward?

“Fortunately, the cost of technology is continuously decreasing, and AI is no different,” said Bobby Bray, COO, Anchora Advisory. “Granted, cutting edge technology might stretch beyond the budget of many midmarket companies, but yesterday’s cutting edge is now well within reach.”

Bray believes AI is the perfect example. LLMs that cost hundreds of millions a year or two ago, are now being developed for a fraction of that cost.

“However, even though costs are now within reach, it is still critical to spend wisely and strategically,” said Bray who recommends keeping a few additional best practices top of mind:

Prioritize digital transformation initiatives and focus on those that will have the greatest impact on business. Partnering with leading business application providers, like SAP, can provide access to the latest technology while reducing cost and complexity of implementation.

Cloud-based and AI supported solutions are more cost-effective and scalable than on-premise solutions.
Invest in training and development to ensure new technology is used effectively and user acceptance is high.

Driving competitive advantage:

In addition to being mindful about entering new markets and investing in the right technology, midmarket companies still need to drive their own competitive advantage, especially when smaller firms are more nimble and larger firms have more resources.

“Midmarket companies need to embrace their position and find competitive advantage where they are, not where somebody else is,” said Bray. “They will not be as nimble as small companies, but they have more resources and likely more experience; they are not as resourced as large companies but they can move faster.”

By focusing on their own competitive advantages, high-growth companies will develop a deep understanding of their target market which will allow them to offer more tailored products and services than larger firms, according to Bray.

“Their agility will also help them to quickly adapt to changing market conditions and customer demands, giving them advantages over slower moving larger firms.”

In addition, companies can develop strong relationships with their customers and provide exceptional customer service, something that larger firms sometimes struggle with.

“By focusing on niche markets and developing specialized expertise, high-growth companies can differentiate themselves from both smaller and larger competitors,” said Bray. “That’s why it’s important to embrace the competitive advantage of where they are, not where somebody else is.”

ByTim Clark, Brand Contributor.
for SAPBRANDVOICE

https://www.forbes.com/sites/sap/2025/03/24/4-ways-to-assemble-your-genai-dream-team/