Page 114 - MYM 2015

by total identi cation with their mission. Their leadership is authoritarian in the principles, but exible in the details. Continuity is very high. Young CEOs and women play a more important role than in large companies.
Three Circles
The key lessons are summarized in the three circles in gure 10. The core is the strong leadership with ambitious goals. The inner strengths are depth, high performance employees, and continuous innovation. The outer circle comprises focus on a narrow market, closeness-to-customer, clear competitive advantages, and all that with a global orientation. The Hidden Champions go their own ways towards Globalia, 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 in Globalia.
Focus
Strong leadership with ambiti- ous goals
High performance employees
Closeness to customer
Figure 10. The three circles of the Hidden Champions
Lessons for Emerging Countries
Emerging countries would be well advised to pin their hopes on numerous internationally competitive mid-size companies rather than on a few giant corporations. Hidden Champions can be strategic role models for these countries. Indeed we nd companies in these countries that already pursue the Hidden Champions’ strategy and are successful in doing so. Figure 11
lists examples of Hidden Champions from emerging countries.
There are Hidden Champions from emerging countries which have even beaten former market leaders
from Germany. The Chinese construction machinery maker Sany is such a case. In 2009, Sany overtook Putzmeister from Germany as the global leader in concrete pumps. In 2012 it acquired Putzmeister. The
case shows that companies from emerging countries can rise to leading positions in the world in their respective markets.
In what businesses and sectors are the chances of Hidden Champions from emerging countries most promising? There is a clear answer: in sectors where the country has competitive advantages. Often these are natural resources, such as citrus fruits in the case of Brazil, natural rubber in Malaysia, jute in Bangladesh or titanium in Russia. But advantages can also result from speci c traditions and skills as the Black Forest case from Germany has shown, where a medical technology industry emerged from a
Company
Cutrale Embraco Embraer Fischer Andre Maggi SQM Chile
Galanz
Pearl Clock Pearl River Piano Miguel Caballero Nakhla Tobacco Herend
Tulpar-in Tech Essel Propack Reliance
Top Glove Uralkali VSMPO-AVISMA Kaspersby Lab Sappi
Country
Main product
Market Position
Largest manufacturer worldwide World market leader
World market leader
World market leader
World market leader World market leader
World market leader
World market leader
Largest manufacturer worldwide One of the world market leaders One of the world market leaders One of the world market leaders One of the world market leaders World market leader
World market leader
World market leader
World market leader
World market leader
One of the world market leaders World market leader
China International Marine Containers
Brazil
Brazil
Brazil
Brazil
Brazil
Chile
China
China
China
China
Colombia
Egypt
Hungary
Kazakhstan
India
India
Malaysia
Russia
Russia
Russia
Citrus fruits
Compressors for refrigeration
Regional aircraft
Fruit concentrates
Soybeans
Lithium
Containers
Microwave ovens
Quarz watches
Pianos
Bulletproof unobtrusive wear
Tobacco for water pipes
Porcelain
Video-gram metric track measuring
Toothpaste tubes
Polyester
Rubber gloves
Potash and titanium salts
Titanium
IT-security
World market leader
South Africa
Soluble cellulose
Figure 11: Hidden champions from emerging countries
clock-making tradition. Emerging countries and their companies should not limit themselves to producing and exporting primary goods. Rather they should process these goods and sell the semi- nished
or nished products at higher prices. Top Glove in Malaysia is an example. In Brazil, Hidden Champions like the Fischer Group, Cutrale, or Sadia prove that this is a path towards success. Middle East countries acquire producers in petrochemical processing to get a larger part of the value chain.
Ultimately the ambitions should reach further
with regard to creating world class manufacturing companies. Again Brazil has some astonishing examples. Hidden champions like Embraer, the global leader in regional aircraft, and Embraco, a leader
in compressors, show that an emerging country
can develop the competencies to compete globally
in highly contested and sophisticated markets. Countries such as Taiwan or Korea have gone through this process and achieved spectacular successes. They started very poor not so long ago and have
now attained world-class status and leading global positions in numerous markets.
114 I October 2015
Innovation
Global orientation
Competitive advantages
Depth