Transcript Wert der Marke

Hidden Champions of the 21st Century
Role Models of Strategy and Leadership beyond the Crisis
Indo-German Chamber of Commerce/
PricewaterhouseCoopers
Prof. Dr. Dr. h.c. Hermann Simon
Mumbai, May 11, 2010
Bonn Office
Haydnstrasse 36, D-53115 Bonn, Germany
Phone +49/228/9843-115, Fax +49/228/9843-380
e-mail: [email protected]
Internet: www.simon-kucher.com
Exports in 2009 (billion US-$, est.)
1194
1187
China
Germany
995
USA
516
Japan
457
France
398
369
355
351
299
296
Netherland
Italy
South Korea
United Kingdom
Canada
Russia
Mexico
Spain
Taiwan
Saudi Arabia
Australia
Brazil
India
Thailand
Poland
Sweden
Source:
CIA World Fact Book
224
216
198
181
162
159
155
151
135
133
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Exports 2000-2009 (US-$ billion)
in billion US-$
1.600
1.463
1.400
1.428
1.322
1.377
1.220
1.200
1.194 China
1.109
1.187 Germany
1.148
971
1.000
1.037
910
994 USA
972
Germany
904
752
800
819
762
USA
725
600
593
400
China
438
2003
Year
2004
2005
2006
2007
2008
2009
Source: WTO Trade Statistics
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What Is a Hidden Champion?
 Top 3 in the world or no. 1 on its continent
 Revenue below $3 billion
 Not well known in general public
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Hidden Champions
 Delo
 Baader
 Brainlab
 Lantal
 Brita
 Tetra
 Belfor
 Essel Propack
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Hidden Champions Worldwide
Germany
1997/2007
Turkey
1999
Brazil
2003
Taiwan
1996/2004
USA
1996/2009
India
2009
France
1998
Japan
1998
Poland
1999/2009
Netherlands
1997/2009
January 26, 2004
Serbia
2007
Lithuania
2009
Egypt
2008
Italy
2001/2007
Spain
1997
Russia
2005
Korea
1997/2008
China
1997/2000/
2005/2009
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Key Facts of the Last Ten Years
 1 million new jobs
 Annual growth of 10% p.a., revenue 2.5 times
larger than 10 years ago
 More than 100 new €-billionaires
 Sharp increase of world market share
 Massive wave of innovation
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Why are they successful?
How do they differ from large firms?
What can we learn from them?
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Extremely ambitious goals:
Market Leadership
Growth
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Chemetall
“The goal of Chemetall
is the worldwide
technology and marketing leadership.”
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3B Scientific
“We want to become
and stay no. 1 in the world.”
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Karl Mayer
“We don’t want our world market share
to drop below 70%.”
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Market Share of Hidden Champions
Absolute
market share
World
Relative
market share
10 years ago
Today
10 years ago
Today
30.2%
33.0%
1.56
2.34
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Growth
From Hidden Champion to Big Champion
20000
Revenues in USD million
18000
Fresenius
SAP
16000
14000
Wuerth
12000
10000
8000
6000
4000
2000
0
1995
2008
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Growth
Mid-sized Hidden Champions
5000
Cronimet
Claas
Enercon
Revenues in USD million
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1995
2008
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Growth
Small Hidden Champions
600
Revenues in USD million
500
Rational
400
300
Bartec
Brainlab
200
100
0
1995
2008
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Lesson 1
Success always begins with ambitious goals. The
Hidden Champions of the 21st century go for
growth and market leadership. This is the fuel that
drives them forward.
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Focus and Depth
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Uhlmann
“We always had one customer and will
only have one customer in the future:
the pharmaceutical industry.
We only do one thing, but we do it right.”
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Flexi
“We will do only one thing,
but we do it better than anyone else.”
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Deep Instead of Broad: A Focused Strategy
The Case of Winterhalter
Dishwashers
for
Hospitals
Dishwashers
for
Schools
Dishwashers
for Hotels/
Restaurants
Dishwashers
for
Companies
Dishwashers
for
Organisations
Broad
Dishwashers
Water
Conditioners
Detergents
D
e
e
p
Service
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Deep Value Chain
 No outsourcing of core competencies
 Strong outsourcing of non-core activities
 Own machine shops
 Very secretive in R&D
 Avoidance of strategic alliances
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Comments on Outsourcing
 “We produce all parts ourselves, based on the quality
standards we define.”
 “At Kaldewei we make everything ourselves.”
 “We can best fulfill the extremely high requirements for
quality and precision in-house.”
 “As many parts as possible are self-produced, all of which
takes place in a small region with down-to-earth people.”
 “We make our own tools. We can only deliver top quality
if zero tolerance begins with these tools.”
Wanzl
Kaldewei
Heidelberg
Miele
Weidmueller
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Lesson 2
The Hidden Champions see the market definition as
a part of their strategy. In defining their markets
narrowly they observe both customers’ needs and
technology. They define their markets rather deep
than broad and are highly focussed.
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Globalization
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The Hidden Champions Strategy
- Specialization in product und know-how -
Global Selling and Marketing
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Globalization Has Only Just Begun
World exports per capita (US-$)
2150
985
437
6
23
1900
1950
1980
2000
2008
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Globalization: Kaercher
World leader in high pressure water cleaners
61 subsidiaries since 1962
Number of subsidiaries
Founding year of subsidiaries
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Future Attractiveness of Emerging Markets
73%
China
48%
Russia
35%
India
Eastern Europe
(without Russia)
34%
21%
Asia (rest)
Brazil
13%
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From Transatlantica to Eurasia
Region
Revenue share
10 years ago (%)
Revenue share
today (in %)
Change
(%)
Western Europe
61.9
50.6
-18.3
USA
14.9
17.5
+17.4
Asia
10.1
16.9
+67.3
Eastern Europe
3.6
8.1
+125.0
Rest
9.5
6.9
-27.4
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Lesson 3
The Hidden Champions combine specialization in
product and know-how with global selling and
marketing. Globalization is the growth booster for
them. They serve the target markets through their
own subsidiaries. They are in a process of transforming from Transatlantic to Eurasian companies.
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Innovation
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R&D Intensity
R&D as %
of revenue
Index
Industrial firms with R&D
3.0%
100
Booz (Global Top 1000 in R&D)
4.2%
120
Hidden champions
6.0%
200
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Patents
Patents per
1,000 employees
Cost per patent
in 1,000 $
Patent-intensive
large corporations
5.8
3,717
Hidden champions
30.6
725
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Driving Forces of Innovation
Large corporations
Hidden Champions
65%
50%
31%
19%
21%
14%
market
technology
market &
technology
market
technology
market &
technology
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Innovation: Enercon
 Founded in 1984
 Revenue: $5 billion
 42% of all patents worldwide
 Prices:
20% higher than competition
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Enercon: E-Ship
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Lesson 4
The Hidden Champions are in a phase of massive
innovations.
The
effectiveness
of
their
R&D-
activities beats that of large companies by a factor of
5. Their innovation processes are fundamentally
different. Their innovativeness is both market- and
technology-driven.
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Closeness to Customer
Marketing Professionalism
Value and Price
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Market-related Strengths
Five times as many employees (25-50%) have regular customer contacts
compared to large companies (5-10%).
closeness-tocustomer
88.7%
image
professional
marketing
84.1%
36.4%
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Closeness to Top Customers
 Close to most demanding customers
 Grohmann Engineering: Top 30 customers
worldwide as target group, most important
customer is Intel
 Top customers as drivers of performance and
innovation
 Follow top customers everywhere
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Value and Pricing
 Strategies are value-driven, not price-driven
 Price premium 10-15%
 Avoidance of price wars
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Competitive Advantages of the Hidden Champions
Product quality
Economy
Punctuality
Advice
Closeness-to-customer
Service
Flexibility
Systems integration
Price
Importance
Distribution
Made in
Germany
Cooperation
with suppliers
Patents
Advertising
weaker
stronger
than the strongest competitor
Competitive performance
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Attributes with Strongest Increase in Importance
Attribute
Increase in percentage
points last ten years
Advice
+10
Systems integration
+8
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Lesson 5
Closeness to customer is the greatest strength of
the
Hidden
Champions
–
even
ahead
of
technology. The Hidden Champions hold strong
competitive
posititions.
Advice
and
systems
integration are new advantages which create
higher barriers to entry. They closely compete with
their best competitors.
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Employees
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Employees
 “More work than heads”
 High performance cultures
 High qualification
 Low turnover
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Higher Qualification
In the last ten years, the share of university graduates has more than
doubled.
University
graduates (%)
19.1%
8.5%
10 years ago
Today
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Turnover Rates
15.0%
30.6%
USA
Austria
9.0%
Switzerland
8.8%
Germany
7.3%
7.3%
Daimler
Hidden
champions
5.3%
5.3%
2.7%
2.7%
Source: Hernstein-Institute/US Department of Labor
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Lesson 6
The Hidden Champions have “more work than
heads” and high performance cultures. Employee
qualification is top. Turnover and sickness rates
are extremely low.
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Leadership
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Leaders
 Identity of mission and being
 Leadership
- authoritarian in the principles
- participative, flexible in the details
 Young into power
 More women in top positions
 Very high continuity
(average CEO tenure is 20 years)
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Lesson 7
The
secret
of
the
success
of
the
Hidden
Champions lies in their leaders. The leadership is
authoritarian in the principles, but flexible in the
details. Continuity is very high. Young CEOs and
women play a more important role than in large
companies.
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The Three Circles of the Hidden Champions
Leadership with
ambitious
goals
Competitive
advantages
Global
orientation
Focus
High
performance
employees
Closeness to
customer
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The Ultimate Lesson
The “Hidden Champions of the 21st Century”
go their own ways
– more decisively and successfully than ever.
They do most things differently…
 from the teachings of management gurus,
 from modern management fads,
 from large corporations
They are true role models of
strategy and leadership beyond the crisis.
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To conclude….
… a personal
Hidden Champions Story
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Simon - Kucher & Partners

Worldwide Strategy & Marketing Consultants

Focus: Revenue-driven Profit Growth

Core Competency: Pricing
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Best Consultancies in "Marketing & Sales" in Germany
Germany’s most prestigious business magazine ranks Simon-Kucher as the
leading consultant in "Marketing & Sales", ahead of Boston and McKinsey.
Competence Ranking "Marketing & Sales"
Rank
Consultancy
Score*
401
1
Simon-Kucher & Partners
2
Boston Consulting Group
3
McKinsey & Company
346
4
Bain & Company
344
5
Roland Berger
370
338
manager-magazin 08/2007
* Maximum 500;
Source: manager-magazin August 2007/IMB (Institute for Management & Consulting); Survey of 264 Top Managers
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World Leader in Price Consulting
“Simon-Kucher is world leader in giving advice
to companies on how to price their products.”
Business Week
“Simon-Kucher is the worlds’ leading pricing consultancy.”
The Economist
“In pricing you offer something nobody else does.”
Professor Peter Drucker
“No one knows more about pricing than Simon-Kucher.”
Professor Philip Kotler
“No firm has spearheaded the professionalization of pricing
more than Simon-Kucher & Partners.”
William Poundstone (Priceless, Hill and Wang, 2010)
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Employees and Revenue
Revenue in 2009: $128 million
436 446
354
283
248
220
187
112
3
4
1985 '86
5
7
56
46
27 35
22
19
18
13
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
71
'97
130
147
165
90
'98
'99 2000 '01
'02
'03
'04
'05
'06
'07
'08
'09
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Comparison Boston Consulting vs. Simon-Kucher
After 25 years Simon-Kucher is larger than the Boston Consulting group was
after 25 years.
372
364
Jahr
1987
(Gründung
1963)
Boston
Consulting
Group
Jahr
2009
SimonKucher
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Global Presence
Luxembourg
Belgium,
Brussels
Netherlands,
Amsterdam
Denmark,
Copenhagen
Germany,
Bonn
Germany,
Frankfurt
Germany
Munich
Germany,
Cologne
Russia,
Moscow
England,
London
Poland,
Warsaw
Japan,
Tokyo
USA,
San Francisco
USA,
Boston
USA,
New York
France,
Paris
Spain,
Madrid
Switzerland,
Zurich
Italy,
Milan
Austria
Vienna
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The New Books
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Lessons for India
 India is very strong in big globally active companies
 India’s export performance is still lacking
 Biggest internationalization and job creation
potential lies in mid-sized firms
 India is quite advanced in mental internationalization
 Government support is a necessary, not a sufficient
condition
 Foundation of everything lies in entrepreneurship
 Social respect for founders and small companies
crucial
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The Most Influential Management Thinkers
in German-Speaking Countries 2005-2009
1. Peter F. Drucker †
38.6%
2. Hermann Simon
14.3%
3. Fredmund Malik
13.6%
4. Michael E. Porter
6.7%
Source: www.managementdenker.de, Internet Surveys, n = 2069 2005 –2009
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Hermann Simon
Hermann Simon is chairman of Simon-Kucher & Partners Strategy & Marketing Consultants with
offices in Amsterdam, Bonn, Boston, Brussels, Cologne, Frankfurt, London, Luxembourg, Madrid,
Milan, Moscow, Munich, New York, Paris, San Francisco, Tokyo, Vienna, Warsaw and Zurich. Simon is
an expert in strategy, marketing and pricing. He has an extensive global range of clients. In the
German language area he was voted the most influential management thinker after the late Peter
Drucker.
Before committing himself entirely to management consulting, Simon was a professor of business
administration and marketing at the Universities of Mainz (1989-1995) and Bielefeld (1979-1989). He
was also a visiting professor at various international universities: Harvard Business School,
Stanford, London Business School, INSEAD, Keio University in Tokyo and the Massachusetts
Institute of Technology. From April 1995 to May 2009 he was chairman and CEO of Simon-Kucher &
Partners.
Professor Simon has published over 30 books in 22 languages, including the worldwide bestseller Hidden Champions (1996,
cover story of BusinessWeek in January 2004) and Power Pricing (1997), as well as Strategy for Competition (2003) and
Think! (2004). Manage for Profit, Not for Market Share (2006) takes a critical look at the widespread focus on volume and
market share and calls for a conscious shift of focus towards profit. His book Hidden Champions of the 21st Century,
Success Strategies of Unknown World Market Leaders (May 2009) investigates the strategies of little known world and
European market leaders in German-speaking countries. His most recent book Beat the Crisis – 33 Quick Solutions for Your
Company has just been published in the US. In only six months it has appeared in 13 countries (Germany, USA, China,
Korea, Russia, Spain, Italy, Brazil, Bulgaria, Czech Republic, Slovenia and the Netherlands).
Simon was and is a member of the editorial boards of numerous business journals, including the International Journal of
Research in Marketing, Management Science, Recherche et Applications en Marketing, Décisions Marketing, European
Management Journal as well as several German journals. Since 1988 he has regularly written a column for the business
monthly Manager Magazin. As a board member of numerous foundations and corporations, Professor Simon has gained
substantial experience in corporate governance. From 1984 to 1986 he was the president of the European Marketing
Academy (EMAC).
A native of Germany, he studied economics and business administration at the universities of Bonn and Cologne. He
received his diploma (1973) and his doctorate (1976) from the University of Bonn. Simon holds an honorary doctorate from
IECD Business School of Bled, Slovenia.
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