Prof. Danica Purg, Dean and President of IEDC-Bled School of Management, President of Central and East European Management Development Association, Slovenia

1. Hidden Champions can help their
countries to be less hidden
IEDC-Bled School of Management
Prešernova 33, 4260 Bled, Slovenia • Tel.: +386 4 57 92 500 • Fax: +386 4 57 92 501 • E -mail: info@iedc.si • www.iedc.si

2. Why Hidden Champions and who are they? I.
• According to initial research by Professor Hermann
Simon, they are the most propulsive contributors to the
success of German export economy, key for both growth
and profitability
• Prof. Simon’s criteria for being a Hidden Champion:
• International leadership:
• #1, #2 or #3 in the global market
• # 1 in Europe
• # 1 Central and Eastern Europe
• Revenues below 3 billion of EUR
• Low level of public awareness
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3. • We are currently performing research on Hidden
Champions in 18 countries with emerging economies, in
order to:
• See how “our” Hidden Champions look like
• Understand better how they contribute to our economies
• Have recommendations to the policy makers on how to improve
conditions leading to their success in global markets
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Why Hidden Champions and who are they? II.

4. General characteristics Hidden Champions I.
• Fast-growing companies
• Growth levels above industry averages and
significantly above GDP growth
• In some cases growth constrained by insufficient
resources (mostly people and financing)
• High-level of resistance to recession
• Able to grow and gain market share even when their
markets were in recession
• Independent of national markets
• Highly focused and close to their customers
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5. • Can be split in two groups:
• Hidden Champions that are the top quality
performers in mature niches (e.g. textile, industrial
equipment, components, retailing, IT)
• Hidden Champions that launched new niches
(typically high technology, ecologically advanced)
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General characteristics Hidden champions II.

6. More detailed characteristics of Hidden
Champions I.
• Growth strategies:
• If serving corporate customers, integrating forward
from EOM suppliers to own branding
• Integrating into services
• Having innovative products and business models, but
introducing them very carefully
• When competition in the niche intensifies, stop
growing in that niche but keep leading position, look
for similar niche for growth
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7. More detailed characteristics of Hidden
Champions II.
• Customers:
• Serve the most demanding customers in order to
intensify learning. They are first able to resolve future
problems
• Where distributors are a link between final consumers
and company, Hidden Champions are educating and
licensing distributors to sell also consultancy to the
customers and hence earn additional revenues by selling
their products
• Customers hire them for their innovativeness and ability
to “see the future”
• Global recognition is confirmed though many professional
prizes and regards.
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8. More detailed characteristics of Hidden
Champions III.
• Employees and ownership:
• In some cases fully owned by the entrepreneur, in others
employees hold considerable ownership stake
• Work atmosphere is positive. Employees are highly committed
to the company. Best talents are attracted (first locally, then
internationally)
• Leadership:
• Strong vision, strong personalities, good judgmental
skills, sensitivity to people, high technical
skillfulness, international outlook and recognition
• Sustainability
• Being committed to environmentally friendly business
processes
• Act as “responsible citizens” and leaders of their local
communities
• Profit is important, but is not at the top of the list of priorities
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9. Hidden Champions from Croatia
• DOK-ING Ltd., Zagreb
Company information
industry: Engineering and manufacturing of remote controlled
machinery
Year of establishment: 1991
Sales revenues in 2010: € 26,3 MIO
Revenues in 2000: € 550 000
Average number employees in 2010: 117
Brainer(s) behind the company: Founder and owner Vjekoslav Majetid
Nature of market leadership
World leader in the production of remote controlled machinery for underground mining and global technological
leader in production of remote controlled machines for use in specific conditions considered dangerous for
humans (mine fields, fire disasters, bioterrorism).
Nature of competitive advantage
The main source of company‘s competitive advantage is the superior expert knowledge gained though continuous
innovations in both machines as a whole and their related features like drive system on batteries etc.

10. Hidden Champions from Croatia
• DURANTE M-KVADRAT Ltd., Zagreb
Company information
Year of establishment: 2008
Sales revenues in 2010: € 800 000
Revenues in 2000: n/a
Average number employees in 2010: 3
Brainer(s) behind the company: Owner Marko Jelušid + two partners (Renata Jelušid and
Branka Merdita)
Nature of market leadership
The only licensed company for production and distribution of joint free slabs in Europe.
The product is patented by the innovator in Australia and there are only four licenced producers and sellers in the world.
Nature of competitive advantage
- Durante M-Kvadrat is the only one with the advance payment as a method for securing company’s capital in products
and money in this turbulent times. This created big financial savings for the investor.
- Award for Excellence from Concrete Institute of Australia in 2001; in 2006 in Las Vegas on World of
Concrete and in 2008 when it won a golden medal as the most innovative product at the largest world construction fair.

11. Hidden Champions from Croatia
• Bodren Ltd., Hum na Sutli
Company information
industry: wine production
Year of establishment: 1999
Sales revenues in 2010: € 128 000
Revenues in 2000: /
Average number employees in 2010: 1
Brainer(s) behind the company: Founder and owner Boris Drenški
Nature of market leadership
First in the region in production of sweet and ice wine.
Nature of competitive advantage
- new tastes of the wine and high quality of products
- six gold, three silver and two bronze Decanter medals (2008 – 2011)

12. Concluding remarks
• Current business environment should be more friendly and support
their growth (e.g. tax policies, innovation infrastructure, incentives
for industry clusters, support in attraction of global human
talent, international networking)
• Croatian government could make a break-through with its
approach, to help the growth of such companies (e.g. tax holidays
etc.)
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