Page 115 - MYM 2015

Individual entrepreneurs in emerging countries
can learn a lot from the Hidden Champions. One
aspect is specialization and focus. Often successful entrepreneurs in emerging countries are tempted
to diversify because there are so many growth opportunities in their home markets. This pattern applies right up to the highest size category, so that extremely broad-based conglomerates are typical (such as Koc and Sabanci in Turkey or Samsung and Hyundai in Korea). Instead, SMEs should stay focused and concentrate on conquering a leading market position
in their country and region. Remember: only focus
leads to world class. A very important point is global presence. Most small and medium-sized companies prefer to sell through distributors and consequently
do not hold strong market positions in their target markets. The Hidden Champions, however, establish their own sales subsidiaries, which bring them closer
to their customers, help them build customer loyalty and provide them with feedback for innovations. The mental and cultural internationalization of employees is critical. In foreign markets you need people who speak the customers’ language. That is what Globalia is about, as Jakob Fugger, centuries ago one of the world’s most successful traders, said: “The best language is the customer’s language”.
Last but not least: Philip Kotler outlined in his book “Confronting Capitalism”, that income inequality is one of the biggest challenges of mankind (Kotler, 2015). Strong small and mid-sized companies are a very effective way to create a more even income distribution. Therefore, all countries should strive to foster a strong mid-sized sector of Hidden Champions.
References
1. Booz & Company (2013, April 16). Frankfurter Allgemeine Zeitung. p. 16.
2. Deutsche Unternehmen investieren mehr als andere (2012, March 12). Frankfurter Allgemeine Zeitung. p. 18.
3. Global 500 (2014, July 21). Fortune. pp. F15-F20.
4. Institut der Deutschen Wirtschaft. (2012, January 12). IW-
Dienst Köln.
5. Kotler, P. (2015): Confronting Capitalism. New York: Amacom
6. Simon, H. (2009). Hidden champions of the 21st century. New York: Springer.
7. Simon, H. (2012). Hidden Champions – Aufbruch nach Globalia. Frankfurt: Campus
8. Simon, H. (2015). Confessions of the pricing man. New York: Springer.
9. Small sh in a big pond. (2009, September 5). Economist.
Author: Hermann Simon is founder and chairman of Simon-Kucher & Partners the global leader in price consulting with 30 of ces worldwide. His Twitter address: @hermannsimon.
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