Table Of ContentHidden 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
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53115Bonn
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[email protected]
ISBN978-0-387-98146-8 e-ISBN978-0-387-98147-5
DOI10.1007/978-0-387-98147-5
SpringerDordrechtHeidelbergLondonNewYork
LibraryofCongressControlNumber:2009928014
©HermannSimon2009
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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
