Crafting Strategies in Vulnerable Markets: Lessons from Survivors

Παρουσίαση με θέμα: "Crafting Strategies in Vulnerable Markets: Lessons from Survivors"— Μεταγράφημα παρουσίασης:

1 Crafting Strategies in Vulnerable Markets: Lessons from Survivors
Business Strategy course June 2017

2 Hidden Champions “HIDDEN CHAMPIONS”
Companies that have experienced steady growth and development in all countries, with unique capabilities and strong cultures, offering innovative solutions to their customers, Able to better cope with the crisis Ready to take advantage of the day after Aim at market leadership in a narrow field. Most of them → family businesses. Often referred to as: “HIDDEN CHAMPIONS”

3 Hidden Champions: Germany
“These companies-SMEs niche firms - are all great innovators”

4 Hidden Champions in Germany (H. Simon)
Company Industry HAUNI Cigarette processing machines WEBASTO Sunroofs for cars WUERTH Assembly appliances PUTRZMEISTER Pumps for concrete TETRA Food for tropical fish STIHL Chainsaws SAP Client/server applications HILLEBRAND Wine trade KRONES Machines for wine bottle labels KONIG BAUER Money press machines NEUMANN Microphones VILLEROY & BOCH Ceramics KNAUF Plaster products FABER-CASTELL Pencils SWAROVSKI Crystal jewellery

5 HAUNI Identity Producing tobacco processing machines.
Strategy: Value to the client considers itself as a partner who adds value to the final product, rather than one more partner in the process of innovation and high technology. Motto: “Embrace challenges, create inspired solutions, continue to excel – Explore new opportunities together.”

6 WEBASTO Identity Strategy Motto: “Feel the drive”
Sunroofs and heating systems for cars and boats. Accessories for buses and trucks. Strategy Long-term value to the client : Increase the goodwill of clients by manufacturing easy to use products that last for a lifetime. Constant network of strictly chosen partners: «From a modest metal device constructor, to a global partner in industrial transport» Motto: “Feel the drive”

7 WURTH Identity Strategy
Provider of materials for cementing, welding and assembling. Strategy Solutions adapted to specific clients’ needs. Gives great importance to close contact with the customer. Reliable customer consultant. Recent advances in technology.

8 PUTZMEISTER Identity Strategy Motto: “Serve- Improve- Create value”
Construction machinery. Strategy Focus on customer and his needs. Innovation and quality products. Devoted and satisfied employees. Motto: “Serve- Improve- Create value”

9 TETRA Identity Strategy
The largest manufacturer in fish food, aquariums and maintenance machinery. Strategy Focus on customer and his needs. Based on research for the discovery of new products.

10 RUD Identity Provider of chain systems for hoisting, lifting or conveying applications. Strategy Solutions adapted to specific clients’ needs. Progressive engineering: R&D alliances with research institutes, colleges and universities, suppliers and customers. Motto: “Tradition in Leadership - We aim to please”

11 LA SPORTIVA (Italian) Identity Strategy
Italian maker of climbing shoes. Hand-crafted wooden clogs and leather boots for many lumber-jacks and farmers. Strategy Constantly searching for innovative and purposeful solutions. “Our driving force is passion, our passion is the mountains”. Motto: “La Sportiva – innovation with passion”

12 Identity Created by Dr L. Tassakos in Stuttgart, in 1997 Innovative applications of robotics (hardware and software). € 2~5 millio revenue. Strategy Innovative solutions mainly for the automobile industry. 45% of annual revenue spent in R&D International orientation, with offices in USA (2008)and (2009) Collaboration with polytechnics and research centers in all Europe Long term relationships with clients Does not enter into alliances with subcontractors.

13 Identity Karl Winterhalter created a globalized family business in 1947. 2010, Top 100 Innovator, Institute of Entrepreneurship and Innovation, Univ. of Vienna Strategy Narrow focus in dishwashers for hotels and restaurants In depth rather than breadth.

14 Competitive strategy of HCs
They focus on narrow niche markets through obsessive concentration become winners in them, coining the phrase “Super Nichists” Key difference: all HCs are very close to their customers. Develop and retain long term relations Invest in innovation and continuous improvement International orientation Long-term orientation and ambitious. 14

15 Leadership - management
Strong leadership with vision formed from a usually charismatic leader –founder Stable management, persistent in goals Managers at a lower level are selected carefully fit the culture There is a family type control rather than faceless shareholders Relations devotion - Elimination of "foreign bodies”.

16 Internal characteristics – Culture 1/2
Workers are considered long-term investment Rate of workers replacement ≈ small Trust & respect instead of control & orders Encourage teamwork with more social control than typical hierarchical control Attention to personal development

17 Internal characteristics – Culture 2/2
Maintaining productive units in parent countries Easy in wage settlement → 'Absence' of labor unions Quick transition from design to production Flexibility due to staff skills - permanent and temporary Create economies of scale through manufacturing specific products.

18 Value Chain Direct information from customers, seek innovative ideas
Direct technical customer support . Focus on the value added to the customer, not only price Long-term relationships and partnerships with suppliers.

19 HCs’ Competitive Advantage 1/3
Innovation, often Market Creators Absolute Focus Develop Unique Capabilities & relationships Concentrate on their Core Competencies Expand in Core products/services Avoid product/service diversity

20 Innovation – product / service improvements as CA
Resist variety of products in favor of quality Innovation - R&D

21 HCs’ Competitive Advantage 2/3
Wide Market Niche Low Cost Differentiation PRODUCT/SERVICE DIFFERENTIATION FOCUS COST LEADERSHIP LOW COST

22 HC Competencies Summary (Kay’s scheme)
ARCHITECTURE Long-lasting, Trust Relationships with Customers Well-Trained, Motivated, and Loyal Employees Strong Corporate Culture Versatile Horizontal Organization Charismatic-Strong Leadership REPUTATION Market Leadership  Recognition Long Term Orientation Good Employer Reputation  Attract Outstanding Employees INNOVATION Continuous, Innovation Sources: Customers, Employees, Suppliers (i.e. PARTNERS) Driven by Corporate Culture Sourcing: “open innovation” from Tech & Market STRATEGIC ASSETS Relations Employees Capabilities

23 Η ΠΑΠΑΔΗΜΗΤΡΙΟΥ Χ. Κ. ΑΒΕΤ, ιδρύθηκε το 1938 στην Καλαμάτα
Η ΠΑΠΑΔΗΜΗΤΡΙΟΥ Χ.Κ. ΑΒΕΤ, ιδρύθηκε το 1938 στην Καλαμάτα. Παράγει προϊόντα βασισμένα στη διατροφική αξία της μεσογειακής διατροφής, όπως το Βαλσάμικο Ξίδι Καλαμάτας με ελαιόλαδο, μέλι ή σύκο, τη Μεσογειακή Μουστάρδα με ρίγανη, θυμάρι ή βασιλικό, κόκκινο και λευκό ξίδι και αποξηραμένα φρούτα. Η εταιρεία το 2010 πέτυχε συνεργασία με την Olympic Air. Το 2012 συνεργασία με την Β.Σ. Καρούλιας Ποιοτικά τρόφιμα, σε συνδυασμό με τεχνολογία και καινοτομία, αλλά και με τάσεις υγιεινής διατροφής.

24 Preservation of Competitive Advantage
Source of Competitive Advantage EMPLOYEES PROCESSES PRODUCTION TECHNOLOGY Contribution to sustainability of CA

25 OUTSTANDING & MOTIVATED
THE 3 CIRCLES FOR HC MARKET FOCUS & NICHE MARKETS CENTRE INNER CIRCLE (COMPETENCIES) OUTTER CIRCLE (OPPORTUNITIES) CONTINUOUS INNOVATION RELY ON OWN COMPETENCES COMPETITIVE ADVANTAGES ORIENTATION GLOBAL STRONG LEADERSHIP AMBITIOUS GOALS OUTSTANDING & MOTIVATED EMPLOYEES CLOSE TO THE CLIENT

26 GREEK HIDDEN CHAMPIONS (are there any?)

27 SUCCESSFUL COMPANIES IN A PERIOD OG CRISIS
High Medium Exports Low Low cost Hybrid Differentiation Generic strategy

28 Greek companies known as “Hidden Champions”
“It is not easy to come first. It takes consistency and very hard work”

29 Successful strategies in the crisis
Differentiation: The greater number of successful firms Less known: have the characteristics of “Hidden Champions”» Hybrid: Several firms Quality at middle prices Some very extrovert and innovative Low cost: Few companies With low cost products Less extrovert

30 Strong connection with personnel - devotion
Leadership – culture Strong connection with personnel - devotion High Devotion to company Μ low Low cost Hybrid Differentiation Strategy

31 GREEK HIDDEN CHAMPIONS
Yes, there are several excellent companies in South Eastern Europe and more globally for which the crisis is opportunity “Greece innovates” Examples e.g. Raycap. Greek Hidden Champions: Lessons from Small, Little known Firms in Greece Voudouris, Lioukas, Makridakis, Spanos (2000), European Management Journal 18(6) The lessons are the same

32 In 1988 founded the factory in Drama.
IDENTITY Established in 1979. In 1988 founded the factory in Drama. Scope of the company is the research and development of technology solutions and services primarily in the areas of telecommunications, electrical protection and energy. Company's exports account for 95% of turnover. Subsidiaries and offices in 10 countries worldwide and staff which absorbs from the best universities in the U.S.A. Excellent quality products and excellent customer relationship The company has received many awards internationally.

33 Addressing niche markets.
STRATEGIES TOWARD CRISIS Because 95% of production directed to external markets, there is no need to take actions to “TACKLE” the crisis in the Greek market. Continue to operate in the same way that brought them to the top by producing excellent products - new technological products - high innovative. Addressing niche markets. Maintaining excellent relationships with their customers. Moto: “Creating innovative solutions worldwide” Raycap Power Protection Corporate Video

34 Impressive list of clientele.
IDENTITY Established in 1988. Production / sale of computer software in the field of automation systems trading. Employs 800+ people. Active in 15 countries. Impressive list of clientele. Continuous profitability and market share growth through acquisitions.

35 Globalization strategy. Entered new markets & technologies.
STRATEGIES TOWARD CRISIS Globalization strategy. Entered new markets & technologies. Differentiation strategy combined with strong international partnerships Creating innovative products, strong R&D department. Strong collaborations with both internal and external companies. Moto: “Your trusted partner in Southeastern Europe” PrinTec infographic Corporate video 2015

36 Staff highly qualified. Very good relationship with customers.
IDENTITY Established in 1975. Wiring and electronic assembly of high complexity for a large number of systems and components interface used in the aerospace, marine, submarines, land vehicles, defense and security. 95% of sales for exports. B2B activity. Staff highly qualified. Very good relationship with customers.

37 MAINLY address international markets - in NICHE MARKET.
STRATEGIES TOWARD CRISIS MAINLY address international markets - in NICHE MARKET. Continue to rely on the excellent quality of their products. Excellent customer relationship. Shift to bioenergy and biofuel markets by creating subsidiary “Clean Energy Solutions” by following market new needs.

38 Family owned business, established in 1987.
IDENTITY Family owned business, established in 1987. Information Technology solutions (business & accounting firm). Training Services - Support users. 1999: Establishment of subsidiary in Bulgaria. Long-term cooperation with Microsoft. Investing in advanced technology & research. Rapid adaptation to technological change. Focus on long-term cooperation-customer service.

39 Shift in foreign markets. Emphasis on relations with customers.
STRATEGIES TOWARD CRISIS Shift in foreign markets. Emphasis on relations with customers. Investing in knowledge. Investment in qualified and experienced staff. Innovation.

40 Pharmathen Background 1/2
Founded in 1969. Family owned – Katsos family. Export activity starts in 1995. Business is strategically refocused into European market in 1998. First product to be launched in Europe in 2002 (Fluconazole).

41 Pharmathen Background 2/2
In 2005 Pharmathen is ranked among the top research companies in Europe. In 2006 the first rep in USA is established. In 2009 sales exceed €100m. 2 factories (Pallini, Sapes). R&D in Greece and India. Presence in 85 countries. Best Place to Work

42 Customer relations Very close relationships
Daily interaction with clients regarding orders, predictions and questions and feedback into the SAP system of the company. Clients are involved in the promotion of new products. Clients requests are tracked in the internal divisions of the company until delivered to the client.

43 Innovation - patents Pharmathen operates 3 R&D centers in Athens, Thessaloniki and India has more than 60 established patents.

44 Educated personnel

45 Family-Owned Business established in 1969.
IDENTITY Family-Owned Business established in 1969. Presence in more than 60 countries (Europe, Asia, Africa, Australia - 15% of turnover comes from exports). International Partnerships (pharmaceutical manufacturing, co-marketing, co-promotion, services to third parties). Standard research work of patent device called Elpenhaler. Research-experimental center. Focus on quality – innovation in all sectors.

46 Targeting in export growth.
STRATEGIES TOWARD CRISIS Targeting in export growth. Maintaining strong relationships with customers. Maintaining high product quality & focused on innovation. Strengthening corporate social responsibility programs. Respect for the people - Social Promotion – Promotion of Greek success.

47 Παράγει πλαστικούς κάδους απορριμμάτων όλων των χωρητικοτήτων καθώς και εξειδικευμένα προϊόντα πολυαιθυλενίου όπως παλλετοκιβώτια, ιχθυοκιβώτια, αρτοκιβώτια, οικιακούς κάδους απορριμμάτων, καθίσματα σταδίων κ.α. Επίσης εμπορεύεται μεταλλικούς κάδους απορριμμάτων. Ετος Ιδρυσης 1990. 2004 Θυγατρική Helesi UK. 2006 Θυγατρική στην Ιταλία, 2008 παραγωγική μονάδα στην Ιταλία 2006 πρότυπη μονάδα ανακύκλωσης μεταχειρισμένων ελαστικών στη ΒΙΠΕ Κομοτηνής.

48 Στρατηγική Υψηλής ποιότητας προϊόντα. Διαφοροποιημένο Προϊόν Εξειδίκευση στη διαχείριση απορριμμάτων Ανταγωνιστικά Πλεονέκτημα Καινοτομία: Τμήμα Έρευνας και Ανάπτυξης Σχεδιασμός νέων προϊόντων - εισαγωγή νέων προϊόντων Στρατηγική Θέση στην Νότια Ευρώπη και τη Μέση Ανατολή όπου η αγορά είναι ακόμα αναπτυσσόμενη

49 Παράγει και Διανέμει μπαταρίες και συστήματα αποθήκευσης ενέργειας, ενεργειακά συστήματα ισχύος, συστήματα πράσινης ενέργειας. Η μονάδα παραγωγής της βρίσκεται στο Νέο Όλβιο Ξάνθης. Κύκλος Εργασιών €120 mln. EBITDA 2014 €10,2 mln. Ενεργό πελατολόγιο σε 100 χώρες Περίπου 600 εργαζόμενοι 3% του ετήσιου τζίρου επενδύεται σε R&D

50 Η Ρalaplast Α.Ε. είναι μια βιομηχανία πλαστικών σωλήνων και εξαρτημάτων. Η παραγωγική της μονάδα βρίσκεται στη ΒΙΠΕ Θεσσαλονίκης, ενώ αποτελείται από μια ομάδα περίπου 200 ατόμων. Οι μεγαλύτερες αγορές της στο εξωτερικό (>300 χώρες) είναι οι Αραβικές χώρες, οι χώρες των Βαλκανίων, οι μεσογειακές χώρες της Ε.Ε., η Συρία και η Τουρκία. Το 2014 ο EBITDA έκλεισε στα 1,9m€. Παράγει πάνω από 3000 προϊόντα στους τομείς: Άρδευση Αγωγοί Οπτικών Ινών Ύδρευση Θέρμανση Γεωθερμία

51 Ιδιόκτητες παραγωγικές εγκαταστάσεις στα Οινόφυτα.
Ιδρύθηκε το 1979 και δραστηριοποιείται στη παραγωγή ειδικών πλαστικών σωλήνων άρδευσης με σταγόνες. Ιδιόκτητες παραγωγικές εγκαταστάσεις στα Οινόφυτα. Παρούσα σε πάνω από 70 χώρες, με θυγατρικές εταιρείες σε Ελλάδα, ΗΠΑ, Τουρκία, Αίγυπτο, Περού, Ιορδανία και Μεξικό. Μερίδιο 60% στην ελληνικής αγοράς και ηγετική θέση στην αγορά της Τουρκίας, της Αιγύπτου, της Ιορδανίας, και γρήγορη ανάπτυξη στις ΗΠΑ, το Περού και του Μεξικό. Απασχολεί περισσότερα από 650 άτομα παγκοσμίως. Οι πωλήσεις εκτός ελληνικής αγοράς αποτελούν κατά προσέγγιση το 90% των συνολικών πωλήσεων

52 Ιδρύθηκε το 1979 και δραστηριοποιείται στη παραγωγή θεραπευτικών σκευασμάτων από συνδυασμούς βοτάνων και μελισσοκομικών προϊόντων. Απασχολεί 200 εργαζόμενους, έχει €30 εκ. κύκλο εργασιών Φυσική παρουσία σε 11 χώρες παγκοσμίως: Αυστραλία, Βέλγιο, Κύπρο, Χονγκ Κονγκ, Ιαπωνία, Λουξεμβούργο, Ολλανδία, Ρουμανία, Ισπανία, Σουηδία, ΗΠΑ. Το 2008 η APIVITA διακρίνεται ως μια από τις 3 πιο καινοτόμες εταιρείες στην Ελλάδα από το Σύνδεσμο Ελλήνων Βιομηχάνων.

53 Ιδρύθηκε το 1976 και είναι ένα διεθνές lifestyle fashion brand που σχεδιάζει, κατασκευάζει και διανέμει κοσμήματα, ρολόγια και αξεσουάρμόδας. Απασχολεί συνολικά εργαζόμενους με κύκλο εργασιών €800 εκ. Η Folli Follie δημιουργεί μόδα σε 30 χώρες με περισσότερα από 650 σημεία πώλησης παγκοσμίως. Μόνο στην Ιαπωνία και την Κίνα η Folli Follie αριθμεί σήμερα περισσότερα από 70 και 250 σημεία πώλησης αντίστοιχα.

54 Η ΠΑΠΑΔΗΜΗΤΡΙΟΥ Χ. Κ. ΑΒΕΤ, ιδρύθηκε το 1938 στην Καλαμάτα
Η ΠΑΠΑΔΗΜΗΤΡΙΟΥ Χ.Κ. ΑΒΕΤ, ιδρύθηκε το 1938 στην Καλαμάτα. Παράγει προϊόντα μεσογειακής διατροφής, όπως το Βαλσάμικο Ξίδι Καλαμάτας με ελαιόλαδο, μέλι ή σύκο, τη Μεσογειακή Μουστάρδα με ρίγανη, θυμάρι ή βασιλικό, κόκκινο και λευκό ξίδι και αποξηραμένα φρούτα. Η εταιρεία το 2010 πέτυχε συνεργασία με την Olympic Air. Το 2012 συνεργασία με την Β.Σ. Καρούλιας Ποιοτικά τρόφιμα, σε συνδυασμό με τεχνολογία και καινοτομία, αλλά και με τάσεις υγιεινής διατροφής.

55 Hidden Champions: Join them!
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