Why Swiss Firms Must Invest in Geopolitical Radar and Sonar
Call to action Swiss firms are at varying stages in developing internal capabilities to detect, assess, and act upon geopolitical developments. A truly effective geopolitical radar system involves cutting through the noise of geopolitical signals and zeroing in on which ones affect the bottom line. Corporate executives must size up each policy development not only in isolation, but also in terms of its effect on current operations, financial performance, and the firm's ability to execute its broader corporate strategy. This filtering process is what turns raw geopolitical information into actionable business intelligence. Furthermore, while risk mitigation is crucial, forward-thinking firms recognize that geopolitical shifts can create significant opportunities. These shifts often lead to the reallocation of demand, supply, or capital creating entry points for prepared companies. Firms that invest in comprehensive radar and sonar capabilities can navigate uncertainty more confidently and turn today's threats into tomorrow's opportunities. With those capabilities built, firms can then begin building a full “geopolitical muscle,” - a whole-of- company approach to geopolitics that will render them both resilient and as early movers into nascent opportunities. The time for Swiss firms to develop these critical capabilities is now. About the authors: Cristián Rodríguez-Chiffelle is Partner and Director at BCG in Geneva. Simon Evenett is Prof. of Geopolitics and Strategy at IMD in Lausanne.
Second, enhanced geopolitical insight enables companies to identify and pursue new business opportunities. In moments in which uncertainty means that most firms are “playing defense,” those able to detect opportunities will have the upper hand. Third, effective radar and sonar support smarter market positioning in politically sensitive sectors. In industries like semiconductors, pharmaceuticals, and clean energy, aligning with government priorities can open doors to public contracts, subsidies, or regulatory advantages. Fourth, enhanced geopolitical capabilities support long-term strategic planning and investment. Fifth, internal capability development strengthens resilience and adaptability. Another benefit of stronger geopolitical insight is the ability to identify and develop alternative revenue streams. Radar and sonar even more relevant given U.S. tariff moves For Swiss firms, developing sharper radar and sonar allows earlier detection of higher import taxes for Swiss goods entering the U.S. market, enabling engagement with policymakers, legal review of trade terms, and contingency planning. And a reciprocal tariff is not the only matter of concern, as the U.S. is also driving sectoral investigations that could - and most likely will render additional tariffs, most notably one launched on pharmaceutical imports, a sector where Switzerland exported CHF 35.7 billion to the U.S. in 2024, which accounts for 24% of all Swiss pharmaceutical exports, and an 8.5% of total U.S. pharmaceutical imports. An acute geopolitical radar would certainly be already screening the potential ripple effects of such levies.
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