Geopolitical Strategies for Internationalization.
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Business internationalization strategies in light of current geopolitics

Business internationalization strategies in light of current geopolitics

In the current environment of rapid change and global uncertainties, companies“ internationalization strategies must adapt to a constantly changing geopolitical landscape. To address these challenges, Octagona has launched "International Talks“, a new webinar format designed to explore numerous topics related to the challenges and opportunities that Italian companies encounter on their path to growth in international markets. 

For the opening meeting, the focus theme was the geopolitical context emerging in this 2025. Understanding geopolitical dynamics is key to anticipating risks and opportunities in international markets. Even more so at a time of great uncertainty such as the current one in which Italian companies, amid fears of new trade barriers and the economic slowdown, are trying to orient themselves as best they can to define their next internationalization strategies.  

To explore these issues, Alessandro Fichera brought together a panel of leading experts: Enrico Verga, a geopolitical expert and journalist, participated in the discussion along with Francesca Alicata, Chief External Relations of SIMEST, Valentina Temporelli, Global OEM Sales Director of Landi Renzo SpA, e Francis Trenti, general manager of Dinamic Oil SpA. Together, they explored the directions in which companies should turn to identify more solid opportunities and navigate less uncertain terrain in the coming months. 

International talk

 

The internationalization strategies of enterprises in the global context 

One of the main themes that emerged concerns the global dynamics that are affecting the Business internationalization strategies. As also stated by Enrico Verga, the concept of multipolarity has gained ground in recent years, overcoming the previous “pax americana” that dominated the global landscape. In the past, the dollar was universally accepted and international trade rules were largely influenced by the United States, creating a predictable environment for businesses.  

However, with the emergence of new powers such as the BRICS, the world is becoming increasingly multipolar.The political choices of recent decades, from wars in the Middle East to tensions in Ukraine, have contributed to this change. In addition, China, through strategic investments and the construction of global infrastructure, is expanding its influence without resorting to military force. This has led to a new reality in which companies must navigate a complex and changing geopolitical environment where old certainties no longer apply. 

SIMEST's role in supporting Italian companies 

In a global context marked by instability and accelerated transformation, Italian companies are faced with complex strategic choices often in the absence of complete information. In this scenario, SIMEST - a company of the Cassa Depositi e Prestiti Group - plays a crucial role in supporting internationalization paths, with a particular focus on small and medium-sized enterprises. 

As pointed out by Francesca Alicata, representative of SIMEST, the support offered takes the form of subsidized financial instruments aimed at strengthening the competitiveness and resilience of Italian companies in foreign markets. Prominent among these are subsidized loans of 0.4%, which represent a concrete opportunity for SMEs to develop and consolidate even in a fragmented and highly competitive geopolitical context. 

Landi Renzo: innovation and local presence for sustainable global growth 

A case of an Italian company that has successfully faced the many challenges of international expansion is Landi Renzo the Group specializing in the design and production of automotive gas fuel systems-particularly LPG, CNG, and hydrogen-with an ongoing commitment to the decarbonization of transportation. 

Landi Renzo's internationalization began as early as the 1960s, as Valentina Temporelli reports, thanks to a strategic vision geared toward geographic diversification and the enhancement of local expertise. The company consolidated its presence in key markets such as Europe, India, China and South America, through the opening of subsidiaries and the establishment of joint ventures with local industrial partners. In particular, entry into Asian markets was driven by the need to respond to emerging environmental regulations and growing demand for low-impact solutions. The direct presence in foreign territories has certainly been a key factor in correctly interpreting market dynamics, building trusting relationships with local stakeholders, and accelerating decision-making processes. This is coupled with a structural investment in research and development, with more than 100 resources dedicated to technological innovation and testing new solutions, including projects related to hydrogen and energy transition. 

The combination of forward-looking governance, in-depth knowledge of international markets, and an orientation toward innovation makes Landi Renzo a virtuous model of sustainable internationalization, able to meet the challenges of an ever-changing global environment with solidity and flexibility. 

Dynamic Oil: adaptation and innovation for international leadership 

Another example of corporate internationalization that has produced remarkable results is the case of Dynamic Oil, a company founded in the province of Modena and now established as a global player in planetary gearboxes and winches for industrial and mobile applications. With more than 50 years of history, the company has built its competitive advantage by focusing on technological innovation, product quality and service customization capabilities, elements that have fostered solid growth in foreign markets. 

Over the years, Dinamic Oil has structured an articulate international presence, with seven branches, including two strategic locations in India e China, which have enabled it to get closer to local customers, improve response times and offer tailored solutions. In particular, as Francesco Trenti says, India now represents a major manufacturing hub, not only for the domestic market but also as a base for serving high-demand areas such as China and the Americas.  

Here, too, emphasis should be placed on the company's ability to adapt to complex scenarios, as demonstrated by the reshaping of the strategy in China-which has been active since 2004-where increasing local competition and pandemic-related difficulties made it necessary to rethink the business approach. In contrast, the investment made in India during the COVID-19 period proved particularly forward-looking: it enabled the company to intercept new market opportunities in a dynamic and rapidly expanding environment. 

In conclusion, strategic flexibility, international vision and a continuous investment in market proximity are key elements to seize the opportunities offered by an uncertain but potential-rich global context. Dinamic Oil's experience shows how an Italian SME can successfully establish itself abroad by combining territorial roots and openness to change. 

Internationalization strategies and geopolitics

 

Exploring new markets: internationalization strategies For Italian SMEs 

So, a concept widely confirmed by direct testimony is that there are two key elements to international growth: time and the ability to optimize information to make quick and informed decisions. In a fluid and complex global environment, it is essential for companies to be able to interpret specific situations and identify the most promising markets for their industry. 

But then, in the face of these considerations and the unfolding geopolitical scenario, where should Italian SMEs focus their efforts in the coming months?  

Key markets in global trade are the Middle East, with the’Saudi Arabia and Iran, which stands out for its investment in modernization and logistics. But India, with its nationalist politics and relations with both the West and the BRICS, also offers unique opportunities. L’Indonesia, one of the most populous countries outside of China and India, is evolving from a supplier of raw materials to a producer of semi-finished goods, thanks in part to Chinese investment. These markets, with growing domestic demand and relative stability, represent significant opportunities for Italian companies, especially those specializing in processing and machinery creation. In a world where geopolitical dynamics are constantly changing, Italian companies can leverage their historical capacity for innovation and adaptation to thrive in these emerging markets. 

We have the confirmations: for Dinamic Oil, the palmoil industry in Indonesia represents a significant opportunity, but interest is also oriented toward South America and the BRICS markets, which are trying to assert their economic and financial hegemony; for Landi Renzo, on the other hand, Africa and Central Asian countries are the emerging markets of interest, and to conquer them, the importance of local presence and customer proximity to understand the specific needs of each market should not be forgotten. 

The United States and the challenge of multipolarity and technology 

Finally, inevitable is an assessment of the role of the United States in the current geopolitical environment. Despite the large debt, the U.S. maintains a strong military projection and the importance of the dollar in global transactions. However, the importance of the dollar may decline, affecting the ability of the U.S. to manage debt. The U.S. should also begin to accept a more multipolar role, Sharing global leadership with emerging powers such as China and Russia, which requires a new political and economic vision. 

The consolidation of China as a global technological and industrial power is gradually reshaping geopolitical and economic balances, challenging the historic U.S. leadership in strategic sectors such as semiconductors and space exploration. In this context, it is crucial for companies to develop internationalization strategies that are aware of the transformations taking place and capable of adapting to an increasingly fragmented and competitive global environment. 

In parallel, there is a clear emergence of the need for Europe-and Italy in particular-to define an autonomous foreign trade policy capable of seizing the opportunities arising from a multipolar international order. Companies are therefore called upon to rethink their growth models in foreign markets, adopting approaches that are more flexible, resilient and consistent with the evolving global scenario. 

 

 The talk, available in full at this link, provided an opportunity to introduce key concepts for businesses in the current geopolitical environment. This event marks the beginning of a series of meetings devoted to topics crucial to companies aspiring to expand their sales abroad. 

Learn more about the activities of Octagona, a leader in internationalization and business strategy, we invite you to contact us 

 

 

 

 

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