Hidden Champions of the Twenty-First Century: Success Strategies of Unknown World Market Leaders PDF
Preview Hidden Champions of the Twenty-First Century: Success Strategies of Unknown World Market Leaders
Hidden Champions of the Twenty-First Century Hermann Simon Hidden Champions of the Twenty-First Century Success Strategies of Unknown World Market Leaders 123 HermannSimon Simon-Kucher&Partners Haydnstr.36 53115Bonn Germany [email protected] ISBN978-0-387-98146-8 e-ISBN978-0-387-98147-5 DOI10.1007/978-0-387-98147-5 SpringerDordrechtHeidelbergLondonNewYork LibraryofCongressControlNumber:2009928014 ©HermannSimon2009 Allrightsreserved.Thisworkmaynotbetranslatedorcopiedinwholeorinpartwithoutthewritten permissionofthepublisher(SpringerScience+BusinessMedia,LLC,233SpringStreet,NewYork,NY 10013,USA),exceptforbriefexcerptsinconnectionwithreviewsorscholarlyanalysis.Useinconnection withanyformofinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilar ordissimilarmethodologynowknownorhereafterdevelopedisforbidden. Theuseinthispublicationoftradenames,trademarks,servicemarks,andsimilarterms,eveniftheyare notidentifiedassuch,isnottobetakenasanexpressionofopinionastowhetherornottheyaresubject toproprietaryrights. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Acknowledgments This book would not have been possible without the responsiveness and cooperation of thousands of companies, managers, and employees of the hiddenchampionsthroughouttheworld.Theirinformationanddatawere collected in countless interviews, workshops, consulting projects, presen- tations,andsurveys.Iwouldliketothankallinterviewpartnersaswellas my colleagues in the worldwide offices of Simon-Kucher & Partners who assistedinresearch,analysis,andinterpretation. Ingo Lier and Doro Hayer managed the documentation and informa- tionflowprofessionally.JenniferHoehr,GunnarMarketandBrieCasazza polished up the text. Astrid Blume and Kerstin Schoene in our research department helped me make the hidden champions a little less “hid- den” by incessantly digging out data and relevant information. Elizabeth Doyle-Aseritis did an excellent job as copy editor. I would like to thank themallfortheiroutstandingcommitmentandtheirperseverance—truly hiddenchampions’virtues. IamindebtedtotheteamatSpringerinNewYork,andparticularlyto Nicholas Philipson and Daniel Valen, who provided most valuable advice andpushedtheprojectthrough. v Contents Acknowledgments..................................... v Introduction ........................................... xiii HowIDiscoveredtheHiddenChampions..................... xiii Chapter 1: The Mystique of the Hidden Champions..... 1 WhoAreThey?ASelectionofHiddenChampionsAround theWorld ............................................... 2 TheVeilofSecrecy ........................................ 13 WhoQualifiesAsaHiddenChampion?....................... 15 WhereDotheHiddenChampionsComeFrom?................ 15 KnowledgeandDataBase .................................. 18 StructuralDataontheHiddenChampions .................... 19 HowSuccessfulAretheHiddenChampions?................... 22 LearningfromtheHiddenChampions........................ 25 TheGoalsofThisBook.................................... 26 Summary................................................ 27 Chapter 2: Growth and Market Leadership ............. 29 TheInnerFlame.......................................... 29 Growth,Growth,Growth .................................. 30 FromHiddenChampiontoBigChampion .................... 32 TheExplodingMiddle..................................... 35 vii GrowingDwarves......................................... 40 GrowthIsNotaWonderDrug .............................. 41 EmployeeGrowthVersusRevenueGrowth .................... 42 DriversofGrowth ........................................ 42 MarketLeadership ........................................ 44 WhatIsMarketLeadership? ................................ 49 MarketShares ............................................ 51 MarketShareandProfitability............................... 52 Long-TermGoals ......................................... 55 Summary................................................ 56 Chapter 3: Market and Focus .......................... 59 MarketDefinitionandMarketShare ......................... 59 NarrowMarkets .......................................... 61 HowHiddenChampionsDefineTheirMarkets ................ 63 Focus,Focus,Focus ....................................... 65 DepthorBreadth ......................................... 66 SupernichistsandMarketOwners............................ 70 ForBetterorWorse ....................................... 74 SoftDiversification........................................ 77 Summary................................................ 86 Chapter 4: Globalization ............................... 89 Globalization:TheSecondPillar............................. 90 GlobalPresence:StateandProcess ........................... 92 GlobalizationofBrands .................................... 96 GlobalizationastheDriverofGrowth ........................ 98 RegionalShifts ........................................... 101 StrategicRelevanceofIndividualCountryMarkets .............. 103 MarketsoftheFuture...................................... 105 China .................................................. 106 India ................................................... 111 EasternEuropeandRussia.................................. 113 Japan ................................................... 114 LatinAmerica ............................................ 116 ImplementingGlobalization ................................ 117 MentalandCulturalAspectsofGlobalization .................. 119 viii Contents GeostrategicLocations ..................................... 122 Summary................................................ 125 Chapter 5: Customers, Products, Services ............. 129 CloseCustomerRelations .................................. 130 CustomerRequirements.................................... 134 DependenceontheCustomerandRiskAspects................. 135 AchievingClosenesstoCustomer ............................ 139 ProductandServiceSpectrum............................... 144 Summary................................................ 156 Chapter 6: Innovation .................................. 159 WhatDoesInnovationMean?............................... 159 HighLevelofInnovativeness ................................ 163 DrivingForcesofInnovation................................ 172 TheOriginofInnovations.................................. 176 LeadershipandOrganizationalAspectsofInnovation ............ 179 Summary................................................ 187 Chapter 7: Competition ................................ 191 CompetitiveStructureandConduct .......................... 191 TheHiddenChampionsintheLightofPorter’s“FiveForces” ..... 195 CompetitiveAdvantages.................................... 197 SustainabilityofCompetitiveAdvantages ...................... 203 DemonstrationofCompetitiveSuperiority .................... 205 CompetitiveEdgeandCosts ................................ 207 SparringPartnersforCompetitiveFitness...................... 214 ExcessiveCompetitiveOrientation ........................... 217 Summary................................................ 218 Chapter 8: Financing, Organization, and Business Environment........................................... 223 Financing ............................................... 224 Organization............................................. 228 Contents ix OrganizationoftheValueChain............................. 237 BusinessEnvironment ..................................... 249 EntrepreneurialClusters.................................... 251 Summary................................................ 253 Chapter 9: Employees ................................. 257 JobCreation ............................................. 257 CorporateCulture ........................................ 260 QualificationsandLearning................................. 274 CreativityofEmployees .................................... 278 Recruiting ............................................... 279 Summary................................................ 282 Chapter 10: The Leaders............................... 285 StructuresofOwnershipandLeadership ...................... 286 HowCrucialIsLeadership? ................................. 289 LeadershipContinuity ..................................... 289 YoungtotheTop ......................................... 293 PowerfulWomen ......................................... 294 InternationalizationofManagement.......................... 298 Personalities ............................................. 300 LeadershipStyles ......................................... 305 ManagementSuccession.................................... 306 Summary................................................ 310 Chapter 11: Hidden Champions: Audit and Strategy Development .......................................... 315 WhatIsStrategy? ......................................... 316 HiddenChampionStrategy:ForWhom? ...................... 316 HiddenChampions–Audits................................ 317 StrategyDevelopment ..................................... 325 StrategiesforValuePropositionsandPricing ................... 335 OrganizationandImplementation ........................... 342 HiddenChampionsandConsultants ......................... 345 Summary................................................ 346 x Contents Chapter 12: The Lessons of the Hidden Champions .... 351 LeadershipandGoals ...................................... 351 High-PerformanceEmployees ............................... 352 Depth .................................................. 353 Decentralization .......................................... 353 Focus................................................... 354 Globalization ............................................ 354 Innovation .............................................. 355 ClosenesstoCustomer..................................... 355 ThreeCirclesandEightLessons ............................. 356 LessonsforStrategyPlanners ................................ 357 LessonsinPolarityManagement ............................. 360 LessonsforSmallCompanies................................ 361 LessonsforMidsizeCompanies.............................. 362 LessonsforLargeCorporations .............................. 363 LessonsforInvestors....................................... 370 LessonsforPolitics,Regions,andCountries.................... 373 SummaryoftheLessons.................................... 378 About the Author ...................................... 383 Subject Index.......................................... 385 Name Index ........................................... 391 Company Name Index ................................. 395 Contents xi
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