Pre Engineered Building Manufacturers Hyderabad.pptx
Mod001093 german sme hidden champions 120415
1. MOD001093MOD001093
ENTREPRENEURSHIP ANDENTREPRENEURSHIP AND
INNOVATION:INNOVATION:
GERMAN MITTELSTANDGERMAN MITTELSTAND
FIRMS : HIDDENFIRMS : HIDDEN
CHAMPIONSCHAMPIONS
Prof.Stephen OngProf.Stephen Ong
BSc(Hons)Econs (LSE), MBA (Bradford)BSc(Hons)Econs (LSE), MBA (Bradford)
Visiting Professor, Shenzhen UniversityVisiting Professor, Shenzhen University
Academic Fellow, Entrepreneurship & Innovation,Academic Fellow, Entrepreneurship & Innovation,
The Lord Ashcroft International Business School, AngliaThe Lord Ashcroft International Business School, Anglia
Ruskin University Cambridge UKRuskin University Cambridge UK
MBA ANGLIA RUSKIN UNIVERSITYMBA ANGLIA RUSKIN UNIVERSITY
3. LEARNING OBJECTIVESLEARNING OBJECTIVES
To assess the significance ofTo assess the significance of
middle ordermiddle order “Mittelstand”“Mittelstand”
firms in Germany;firms in Germany;
To appraise critically theTo appraise critically the
special attributes of thesespecial attributes of these
firms;firms;
To review the growth of theseTo review the growth of these
firms todayfirms today
10. Hidden ChampionsHidden Champions
Defined (Simon 1996)Defined (Simon 1996)
1.1. No.1 or 2 in World Market, orNo.1 or 2 in World Market, or
No.1 in EuropeNo.1 in Europe
2.2. Revenue below 800M EuroRevenue below 800M Euro
(96%), Median 100M Euro,(96%), Median 100M Euro,
66% over 50M Euro. 50%66% over 50M Euro. 50%
ExportsExports
3.3. Low public visibilityLow public visibility
11. Hidden Champions : GrowthHidden Champions : Growth
Rates (1994 – 2004)Rates (1994 – 2004)
15. Hidden Champions (SimonHidden Champions (Simon
1996)1996)
1.1. Mission: WorldMission: World
MarketMarket
leadershipleadership
2.2. NarrowNarrow
marketmarket
segment,segment,
focus strategyfocus strategy
16. Hidden Champions (SimonHidden Champions (Simon
1996)1996)
3.3. Serve targetServe target
marketsmarkets
through ownthrough own
subsidiariessubsidiaries
with specialisedwith specialised
know how.know how.
4.4. Value oriented,Value oriented,
not price.Verynot price.Very
close to topclose to top
customers.customers.
17. Hidden Champions (SimonHidden Champions (Simon
1996)1996)
5.5. HighlyHighly
innovative ininnovative in
product andproduct and
process. Globalprocess. Global
and continuousand continuous
innovation.innovation.
6.6. BothBoth
technology andtechnology and
market driven.market driven.
18. Hidden Champions (SimonHidden Champions (Simon
1996)1996)
7.7. CompetitiveCompetitive
advantage inadvantage in
product quality andproduct quality and
service. Close toservice. Close to
top competitorstop competitors
and defend marketand defend market
positionposition
ferociously.ferociously.
8.8. Deep in valueDeep in value
chain. Rely on ownchain. Rely on own
strengths,strengths,
superiority in theirsuperiority in their
specialisation.specialisation.
19. Hidden Champions (SimonHidden Champions (Simon
1996)1996)
9.9. Very strongVery strong
corporatecorporate
culture,culture,
preciseprecise
employeeemployee
selection &selection &
motivationmotivation
10.10. Very strongVery strong
and long termand long term
leadershipleadership
23. Case : AlfredCase : Alfred
KaercherKaercher
GmbH & Co KGGmbH & Co KG
Founded 1935 by inventor-Founded 1935 by inventor-
entrepreneurentrepreneur
Market leader in cleaning machinesMarket leader in cleaning machines
Turnover 1.92 B Euro (2012) from 160Turnover 1.92 B Euro (2012) from 160
countriescountries
10,000 Employees in 100 subsidiaries in10,000 Employees in 100 subsidiaries in
60 countries60 countries
14 Factories in Germany, Italy, USA,14 Factories in Germany, Italy, USA,
China, BrazilChina, Brazil
https://www.youtube.com/watch?https://www.youtube.com/watch?
v=5Y9qpn10WSov=5Y9qpn10WSo
26. ConclusionConclusion
““If some want toIf some want to
KarcherizeKarcherize you,you,
to exclude you,to exclude you,
we want to helpwe want to help
you get out ofyou get out of
these ghettos.”these ghettos.”
Jean-Marie Le PenJean-Marie Le Pen
(19 April 2007, Paris)(19 April 2007, Paris)
26
27. Further ReadingFurther Reading
Herbert Simon (1996) “Hidden champions:Herbert Simon (1996) “Hidden champions:
lessons from 500 of the world's bestlessons from 500 of the world's best
unknown companies”, Harvard Businessunknown companies”, Harvard Business
School PressSchool Press
The Economist (2007)The fading lustre of
clusters : Special Report