January 2025 saw the finalization of a number of key law firm mergers and combinations, and several key international deals are expected to be finalized in the coming months. Entering a new market is challenging for businesses, whether through a merger and acquisition strategy or organic growth. Effective internal and external communication, including intercultural communication competence, can make the transition smoother and more effective.

1.) Embrace Diversity as a Key Value in Growth

Diversity in a workforce allows for a wide range of perspectives to be represented, enriching connections with stakeholders from a variety of different communities. Diversity as a corporate value has largely been misrepresented in the recent political culture wars, but the data speaks for itself. Diverse businesses are 70% more likely to capture new markets according to the Harvard Business Review. Therefore, when recruiting new talent, remember that each individual behind a resume has a unique set of beliefs, values and experiences that could potentially resonate with consumers. The human aspect of business is a key element that is often disregarded and pushed to the back burner when it comes to growth and development. Truly connecting with a community can present a wealth of opportunities for organizations.

2.) Address Workstyle Disparities Between Individuals of Diverse Backgrounds

Many firms hoping to expand their business have struggled as conflict develops between the workforces in various markets. Culture and expectations of workplace behaviors and norms vary around the world. The degree to which formal language is used with colleagues and superiors, motivations to do well and succeed, the degree to which enjoyment is emphasized and the way information is presented and taught are just a few points of potential conflict when merging cultures in a workplace. New market success is significantly impacted by the harmony of the workforce and therefore cultural awareness and competence is a vital part of communications in order to ensure a smooth transition.

3.) Ensure the New Market Aligns with Organizational Values and Culture

Businesses looking to expand into new markets must decide if their values and culture align with those found in the new market. If forming long-term relationships and close personal dialogues between partner organizations is important for an organization, then they should identify a community that complements those values to pursue expansion. Growth should always be strategic, and organizations should produce a cultural analysis of new markets to determine whether their business can thrive in these new environments.

4.) Test if the New Market is an Appropriate Fit

When expanding into a new market, it is essential to appraise whether the cultural fit makes sense for the service. Amazon emerged in the Chinese market in 2004 but was not able to compete with e-commerce giants that already existed in China and closed operations in 2019 as a result of failures to adapt to the preferences of Chinese consumers. Product managers in the U.S were the ones deciding the products to prioritize in the Chinese market instead of local managers. The disconnect between company and consumer, along with the presence of strong competitors that had a strong understanding of their audience’s culture and preferences, led to the demise of Amazon in China.

The case of Amazon’s downfall in China provides valuable lessons for professional service firms looking to expand abroad. Just like e-commerce businesses, professional service firms must assess whether their services align with the cultural and business norms of the target market. It’s essential for these firms to ensure that local knowledge is integrated into their operations, as relying solely on managers from their home country to make decisions for the new market can lead to a lack of understanding and ultimately, failure.

For professional service firms, cultural fit goes beyond simply offering a service; it involves understanding the way that service is perceived, consumed and valued in the target market. Companies need to evaluate whether the demand for their services is present in the new market and whether they can adapt their offerings to suit local expectations. This may include hiring local talent who understand the intricacies of the culture and business environment, establishing relationships with local partners and customizing services to meet local needs.

The recent wave of law firm mergers and professional services international expansions highlights the complexity and importance of cultural fit when entering new markets. As businesses navigate these transitions, embracing diversity, understanding workstyle differences and ensuring alignment with local values are critical to successful expansion. By prioritizing cultural awareness, fostering strong internal and external communication and adapting services to meet the unique needs of each market, businesses can enhance their chances of success in global growth initiatives. The key to a thriving expansion lies in understanding not just the market, but the people within it.

Leila Medina is Poston Communications’ assistant account executive. At Poston, she is responsible for drafting press releases, pitching to local and national media outlets to obtain client placements and working with the public relations and content teams on various projects.