Hidden champions - Wikipedia

Hidden champions are relatively small but highly successful companies that are concealed behind a curtain of inconspicuousness, invisibility, and sometimes ... Hiddenchampions FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch NicknameforlessknownbuthighlysuccessfulcompaniesHiddenchampionsarerelativelysmallbuthighlysuccessfulcompaniesthatareconcealedbehindacurtainofinconspicuousness,invisibility,andsometimessecrecy.ThetermwascoinedbyHermannSimon.HefirstusedthetermasatitleofapublicationinascientificGermanmanagementjournal,describingthesmall,highlyspecializedworld-marketleadersinGermany.[1]Accordingtohisdefinition,acompanymustmeetthreecriteriatobeconsideredahiddenchampion:[2] Numberone,two,orthreeintheglobalmarket,ornumberoneonthecompany'scontinent,determinedbymarketshare Revenuebelow$5billion Lowlevelofpublicawareness Contents 1Discoveringhiddenchampions 2Successfactors 3Lessonstobelearnedfromhiddenchampions 4Listofselectedhiddenchampions 5References 6Furtherreading 6.1Booksandpapers 7Externallinks Discoveringhiddenchampions[edit] Annualexports2003-2008bydifferentcountries ThefirstEnglishbookaboutthesubjectwasHermannSimon'sHiddenchampions:lessonsfrom500oftheworld'sbestunknowncompanies.[3]ThebookexploreshowGermanywasabletoconsistentlybe(atthetime)thenumberoneexporterintheworld.WhileGermanyhasglobalcorporationslikeVolkswagen,Siemens,BASFandBosch,theseorganisationsarenotsubstantiallydifferentfromorganisationslikeFord,GE,DuPontorVisteon.SimonpostulatesthatGermany'sstrongexportsaresupportedbyalargenumberofmidsizefirms.Thesesmallercompaniesarenormallyknownonlyintheirmarketbytheircustomersandsuppliers,andarerelativelyunknowntothewiderpublic.Whenthesecompaniesareverysuccessfulontheinternationalmarketstheyarehiddenchampions. Simonconducteddetailedresearchon500suchcompaniesandestablishedaframeworktodescribethem.Theframeworkwasalsoabletoidentifythemaindifferencesandtraitscommontohiddenchampions.Withthisframeworkinhanditwasfoundthattherearehiddenchampionseverywherearoundtheworld,buttheyaremostfrequentlyfoundinGermanspeakingcountries. Successfactors[edit] Mostofthehiddenchampionsproduceinconspicuousproducts.Inthemarketfortheseproductstheyarethetopproducerintheworld.Often,butnotalways,thesecompaniesarefamilyowned.Theyexportmostoftheirproducts,andsocontributesignificantlytothecurrentaccountoftheircountries,andaremoresuccessfulthantheaverage. Theideaofmarketleadershipmeansmorethancountingmarketshare.Leadersasemployeesneedan"innerflame"tobecome,andtoremain,thenumberone.Hiddenchampionsnormallyworkinnichemarkets.Forthesemarketstheydesignuniqueproducts,whichareproducedwithahighrealnetoutputratio.Theyhavetoaccepttheriskofbeingasingleproductmanufacturer.Theydividebetween"good"and"bad"marketshare.Thegoodisearnedbyperformanceandasolidfoundation,thebadfrompriceaggressionanddiscounting. Oneresultofworkingwithuniqueproductsinnichemarketsisquiteoftentheneedtodealontheglobalmarketinordertoachieveeconomiesofscale.Forthisreason,hiddenchampionsfeelastrongneedtoworkabroadearlyintheircompany'sdevelopment.Hiddenchampionsalsooperateextremelyclosetotheircustomers,andtheircustomers'needsareanimportantdriverfortheirinnovations.Ontheotherhand,customersofhiddenchampionsdependontheirproductsandtheycannoteasilychangetheirsource.Thisoftenmakesforahighlevelofco-dependencebetweentheproducerandthecustomer,aresultoftheoneproductrisk. Alotofthehiddenchampionsestablishedtheirmainproductasaninnovationandwereabletokeepthissinglepositioninthemarket,orwereatleastabletokeepaleadingposition.Theirmarketsaremostlyoligopolisticwithintensecompetition. Competitiveadvantagesofhiddenchampionsarerarelybecauseofcostleadership,morebecauseofquality,totalcostofownership,highperformance,andconsultationclosetothecustomer.They"earn"theirmarketleadershipthroughperformanceandnotthroughpriceaggression.Theirhighrealnetoutputratioisoftenachievedbyworkingwithproprietaryprocesseswhichmakeithardforcompetitorstoimitatetheirproducts.Ontheotherhand,managementtaskslikefinanceareoftenoutsourced. Italsoseemstobeevidentthattomaintainmarketleadershiphiddenchampionsdobusinessontheirown,ratherthandependonworkingincooperationwithothers.Evensalesincountriesabroadareoftenorganizedfromtheparentcompanybase.Thiskeepssignificantknow-howinside,andhelpsrecruithighlyqualifiedstaffatasmallcompany. Thecorporatecultureofhiddenchampionsisdistinctive.Theirvaluesareconservative:hardwork,strictselection,intoleranceofunderperformance,lowsicknessratesandhighemployeeloyalty—andmostarebasedinsmallertowns. Leadershipstyleisauthoritarianonstrategicissuesbutparticipativeonoperationslevel.Theleadersidentifythemselveswiththecompany,arefocusedontheirproducts,andstayforalongtime,muchlongerthanisnormalinlargepubliccorporations. Aseriousproblemforhiddenchampions,asitisforSMEsingeneral,istoattractinternationalprofessionals.Hiddenchampionsneedpeoplewhoarehappytoliveinaremotelocation,whoareattractedbyjobcontent,andwhodonotcaremuchforaformalandprescribedcareerpath.InGermanytheconceptofhiddenchampionisknowntosomeextent,andthereforehiddenchampionsthereareabletoutilisethislabeltorecruitstaff.[4]In2011,thefirst"HiddenChampionsDay"wasorganizedbythestudentinitiativebdvbe.V.attheUniversityofMannheiminordertopromotetheadvantagesandopportunitiesofworkingforaSME.[5] Lessonstobelearnedfromhiddenchampions[edit] Hiddenchampionsprovideabestpracticeexample.Whilealotofbusinessislocal,itcanbeagoaltobecomethenumberoneonsuchalocalmarket.Alsolargecompaniesmayfindsomeinterestinglessonsaboutinternationalmanagement.Hiddenchampionsteachthatexceptionalmanagementmeansdoingsmallthingsbetterthanthecompetitorsinsteadofmanagingonlyonegreatthing.Simplicityinprocessesandorganizationalstructuresisanotherlesson.Investorsmayfinddetermined,clearlyfocused,continuouslysuccessfulcompanies.[6] TheideaandadaptationofhiddenchampionswasimplementedinafundcalledHiddenChampionsFund,foundedinSingaporeby8IHoldingsLtd.[7] Listofselectedhiddenchampions[edit] ThislistofcompaniesselectedbyHermannSimonin2009givesanideaofwhathiddenchampionsare:[8] 3BScientific(anatomicalteachingaids)[9] ARCITECTA[10](datamanagementplatform) ARRI(cinemacameras) Belfor(removaloffireandwaterdamages) BelugaShipping(heavy-liftshippingcompany;insolvent) BobcatCompany(farmandconstructionequipment) Brainlab(medicalsoftwareandhardware) CorticeiraAmorim(corkproducts) DeLaRue(securityprinting,papermakingandcashhandlingsystems) DELOIndustrieKlebstoffe(adhesivesforchipcards) Embraer(regionaljets) DicksonConstant(technicaltextilesforblinds,trucksheetingetc.) Enercon(windturbines) EOSGmbH(rapidprototypingsystems) EsselPropack(tubesfortoothpaste) FriwoGerätebauGmbH(chargingdevices,powersupplies,leddrivers,batterypacks) JosefGartnerGmbH(facadesforskyscrapers,subsidiaryofPermasteelisa) GallagherGroupLimited(electricfencing,livestock,weighingequipment) HansGerriets(singlemanufactureroflargestagecurtains) HamamatsuPhotonics(opticalsensorsincludingphotomultipliertubes) HeraeusElectro-Nite(measurement,monitoringandcontrolofmoltenmetalprocesses) HiFi-Tuning(developing,engineeringoffinestfuses,outofpuresilverandgold) HöganäsAB(powderedmetals) InternationalSOS(medicalassistance,health-care,securityandriskmanagementservices) Jamba!/Jamster(cellphoneringtones)[11] AustrianJungbunzlauer(sodiumacetate) KlaisOrgelbau(largeorgans) SwissLantalTextiles(cabinsforpassengeraircraft) McIlhennyCompany(Tabascosauce) Molex(electroniccomponents,includingelectricalandfiberoptic) NetJets(fractionalownershipandrentalofprivatebusinessjets) NisshaPrinting(smalltouchpanels) Nivarox(regulatingmechanisminsidewristwatches) NordischerMaschinenbauRud.Baader(supplieroffishprocessingsystems) OmicronNanoTechnology(scanningprobeandtunnel-gridmicroscopes) Orica(industrialexplosives) PERIGmbH(formworkandscaffolding) Petzl(climbinggear,cavinggear,work-at-heightequipment) PhoenixContact(terminalblocks,connectors,interfacesolutions,industrialautomation) PLANSEE(highperformancematerials) Q-Cells(solarenergy,solarcells) Radiall(electronicinterconnectcomponents) Sachtler(tripodsformoviecameras) SAESGetters(Getterproducer) Sappi(coatedfinepaper) Schwank(industrialheating)[12][13][14] SGS,SociétéGénéraledeSurveillance(inspection,verification,testingandcertificationservices) TandbergandPolycom(videoconferencingsystems) O.C.Tanner(employeerecognitionprograms) Technogym(fitnessequipment) Tetra(aquariumandpondsupplies) ULVACTechnologies(vacuumtechnology) UniversoS.A.(wristwatchhands) W.E.T.(carseatheating) Webasto(remote-controlledheatersforcars) Worldwide.energy(greenenergy) ZimmerHoldings,DePuy,Biomet,andStrykerCorporation(allimplants,andlocatedintheareaofWarsaw,Indiana) References[edit] ^Simon,Hermann:HiddenChampions:SpeerspitzederdeutschenWirtschaft.Wiesbaden:ZeitschriftfürBetriebswirtschaft(ZfB)60(1990)9,P.876 ^Simon,Hermann:HiddenChampionsofthe21stCentury :SuccessStrategiesofUnknownWorldMarketLeaders.London:Springer,2009.-ISBN 978-0-387-98147-5.P.15. ^Simon,Hermann:Hiddenchampions:lessonsfrom500oftheworld'sbestunknowncompanies.Boston(Mass.):HarvardBusinessSchoolPress,1996.-ISBN 0-87584-652-1.Theearlierversion,publishedinGerman:Simon,Hermann:DieheimlichenGewinner :dieErfolgsstrategienunbekannterWeltmarktführer.Frankfurta.M.:Campus,1996.-ISBN 3-593-35460-8. ^Venohr,Bernd;Meyer,KlausE.:TheGermanMiracleKeepsRunning :HowGermany’sHiddenChampionsStayAheadintheGlobalEconomyBerlin:WorkingPaperNo.30,InstituteofManagementBerlin,BerlinSchoolofEconomics,2007. ^[1]Websitedes„HiddenChampionsDay“attheWaybackMachine(archivedSeptember29,2011) ^Simon,Hermann:HiddenChampionsofthe21stCentury :SuccessStrategiesofunknownWorldMarketLeaders.London:Springer,2009.-ISBN 978-0-387-98147-5.P.378 ^"HiddenChampionsFund".8IHoldingsLtd.28March2018.Retrieved28March2018. ^Simon,Hermann:HiddenChampionsofthe21stCentury :SuccessStrategiesofunknownWorldMarketLeaders.London:Springer,2009.-ISBN 978-0-387-98147-5.P.2-13. ^3BScientifichomepage,10-03-04 ^ARCITECTA ^TheJamba!GmbH(GermanforLtd.)issince2009FoxMobileDistributionGmbH,nolongerindependent,andbelongstoRupertMurdochsNewsCorporation.Jamba!becomesonlyalabel.Jamba!gotintothelistbecausenearlynobodyknows,thatistheworldmarketleader. ^mentionedinthebookbyHermannSimon:"HiddenChampions-SuccessStrahtegiesforWorldMarketLeaders",CampusFrankfurt1996,ISBN 3-453-13216-5,Page63 ^"FrankfurterAllgemeineZeitung,StrahlermachenesderSonnenach,HelmutBünder,19.November2012"(PDF).Archivedfromtheoriginal(PDF)on2016-04-02.Retrieved2013-07-09. ^"IHKPlus,HiddenChampions,WeltmarktführerausderRegion,Oktober2012"(PDF).Archivedfromtheoriginal(PDF)on2016-04-02.Retrieved2013-07-09. Furtherreading[edit] Booksandpapers[edit] Audretsch,DavidB.,Lehmann,ErikE.,&Schenkenhofer,Julian(2018).Internationalizationstrategiesofhiddenchampions:lessonsfromGermany.MultinationalBusinessReview,26(1),2-24. Fryges,Helmut:Hiddenchampions :howyoungandsmalltechnologyorientedfirmscanattainhighexportsalesratios.Mannheim :ZentrumfürEurop.Wirtschaftsforschung,2006. Hanna,Rosemary:HiddenchampionsoftheB.C.forestindustry :aresmallfirmsatthecuttingedgeofvaluechaininnovation?Ottawa :LibraryandArchivesCanada,2007.-ISBN 978-0-494-16879-0. Langenscheidt,Florian(Ed.),Venohr,Bernd(Ed.):TheBestofGermanMittelstand-THEWORLDMARKETLEADERS.DAABVerlag,Cologne2015,ISBN 978-3-942597-48-7. Merrilees,Bill;Blackburn,Jillian;Tiessen,James;Lindman,Martti:Hidden(SME)Champions :TheRoleofInnovationandStrategy.In:Chetty,Sylvia(Ed.);Collins,Brett(Ed.):ProceedingsoftheAustralianandNewZealandMarketingAcademyConference1–5December2001.Auckland:CollegeofBusiness,MasseyUniversity:2001. Neubauer,Regina:Businessmodelsintheareaoflogistics :insearchofhiddenchampions,theirbusinessprinciplesandcommonindustrymisperceptions.Wiesbaden:Gabler,2010.-ISBN 978-3-8349-2526-8 Simon,Hermann:Hiddenchampions :lessonsfrom500oftheworld'sbestunknowncompanies.Boston(Mass.):HarvardBusinessSchoolPress,1996.-ISBN 0-87584-652-1. Simon,Hermann:LehrenderHiddenChampionsdes21.Jahrhunderts.In:Weissman,Arnold:ErfolgreichmitdenGroßendesManagements.Frankfurta.M.:Campus,2008.-ISBN 3-593-38634-8.S.109-147. Simon,Hermann:HiddenChampionsofthe21stCentury :SuccessStrategiesofunknownWorldMarketLeaders.London:Springer,2009.-ISBN 978-0-387-98147-5. Venohr,Bernd;Meyer,Klaus:TheGermanMiracleKeepsRunning :HowGermany’sHiddenChampionsStayAheadintheGlobalEconomyBerlin:WorkingPaperNo.30,InstituteofManagementBerlin,BerlinSchoolofEconomics,2007. Venohr,Bernd;Meyer,Klaus:UncommoncommonsenseBusinessStrategyReview,Volume20,issue1,Spring2009,p. 39-43 Voeth,Markus ;Herbst,Uta ;Barisch,Sina:HiddenChampionRegionStuttgart :ErgebnisseeinerempirischenUntersuchung.Stuttgart :FördervereinfürMarketinganderUniversitätHohenheim,2008. Witt,Alessa:Internationalisationofhiddenchampions :marketentryandtimingstrategieswithinternationalmanagementandbusinessethicscases.Hamburg:ManagementLaboratory,2010.-ISBN 978-3-9812162-4-0 Externallinks[edit] Whiteboard:guestarticlebyProf.HermannSimononthe13managementprinciplesbehindHiddenChampions,Dec.2012 Whiteboard:guestarticlebyProf.HermannSimononthesocio-economicfactorsthatshapedthe'HiddenChampions',Jan.2013 BusinessWeek,JANUARY26,2004. stimmt.,Friday,July31,2009 inchina,2009-09-14 TheKoreaTimes:2009-28-04,2010-28-04 Japan'sHiddenChampionsHoldtheKeytoRevitalizationofRegionalEconomies,2009 HighcostGermanyshowshowtosucceedinexporting,11-01-31 BenchmarkingandHiddenChampiontopromotelocaldevelopment :Toolsdescriptionandtheirapplication Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Hidden_champions&oldid=1049304535" Categories:TypesofbusinessentityHiddencategories:WebarchivetemplatewaybacklinksArticleswithshortdescriptionShortdescriptionmatchesWikidata Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk Variants expanded collapsed Views ReadEditViewhistory More expanded collapsed Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Languages العربيةDeutsch한국어BahasaIndonesiaBahasaMelayu日本語Русский中文 Editlinks