Corporate CPR Episode 48: The Hidden Champions Market

Corporate CPR Episode 48: The Hidden Champions MarketOn today's show, we discuss the hidden champions market, what their success looks like, what makes them successful, and how you can apply those learnings to your organization.Hermann Simon is the Founder and Honorary Chairman of Simon-Kucher & Partners, today the world’s leading price consultancy with 41 offices and 1600 employees.  From 1995 to 2009 he served as the CEO and is the firm’s Honorary Chairman today.  He is an expert in strategy, marketing, and pricing, and the only German in the “Thinkers50 Hall of Fame” of the most influential management thinkers in the world. In German-speaking countries he has been continuously voted the most influential living management thinker. The magazine Cicero ranks him in the top 100 of the 500 most important intellectuals.Professor Simon has published over 40 books in 30 languages, including world bestsellers on Hidden Champions and price management. His most recent book is True Profit! No Company Ever Went Broke from Turning a Profit. His new book Hidden Champions in the Chinese Century: Ascent and Transformation will be published this spring.  Key Takeaways:What is a Hidden Champion?A Hidden Champion is a company that is one of the top three in its world market, has a revenue of less than 5 billion Euros, and is not known in the general public. They make up a large part of the economy.How is it possible that they are hidden? Why don't they come out and be globally known?It's often part of their culture. They don't want to attract the attention of their competitors. Often, they are suppliers contributing to complex products made by other more visible companies. What is the blueprint for success for these companies?The strategy is built on three pillars.Ambition to be the best: Analyze what you are really good at.Focus: Stay away from diversification. Focus on what you can do the best.Globalization: Expand regionally, and then internationally. What are the main things that cause champions to fail?Many are family companies that don't manage succession well. Technological breakthroughs come which they can't keep up with.What is it about Germany that fosters so many of these types of organizations?Historically, because Germany was made up of 23 monarchies and 2 republics, a businessman had to become international very quickly because of the proximity of the neighboring regions. It became "normal" to think internationally. The German vocational training system has young people work as apprentices in a company three days per week and attend vocational training two days per week. This fosters a great balance between practice and theory, creating worker competence.Recent books by Hermann SimonMany Worlds, One LifeHidden Champions in the Chinese CenturyContact Hermann SimonWebsite: https://hermannsimon.comEmail: [email protected]: https://www.linkedin.com/in/simonhermann/Twitter: https://twitter.com/hermannsimonFacebook: https://www.facebook.com/hermann.simon.50