Booming Germany: thank the Mittelstand
I read an interesting article in the Intermediair...
They profile booming Germany in the current issue. Apparently the tiny companies (which are actually quite large) that make up the German Mittelstand now control 4% of the global export market. The reason for their continued success is ...
They profile booming Germany in the current issue. Apparently the tiny companies (which are actually quite large) that make up the German Mittelstand now control 4% of the global export market. The reason for their continued success is ...
1) Find a niche and become market leader in that niche They absolutely dominate the niche with very high marketshares, always on the basis of quality and added value. They avoid low cost strategies. High quality combined with a perfect understanding of their clients
2) Invest in innovation spend up to 5% of their revenu on innovation. Research is typically applied research to solve customer problems as well as possible.
3) After sales services By providing stellar services, they make sure that their value proposition cannot be copied. They also build long lasting relationships with a few customers. This also means that they rarely if ever use agents that hawk several brands and products at the same customer.
Isn't this the same that Jim Collins profiled as the "hedgehog concept"? It's funny to see how good ideas are always repackaged again and again to gain renewed attention - chiefly because they work
2) Invest in innovation spend up to 5% of their revenu on innovation. Research is typically applied research to solve customer problems as well as possible.
3) After sales services By providing stellar services, they make sure that their value proposition cannot be copied. They also build long lasting relationships with a few customers. This also means that they rarely if ever use agents that hawk several brands and products at the same customer.
Isn't this the same that Jim Collins profiled as the "hedgehog concept"? It's funny to see how good ideas are always repackaged again and again to gain renewed attention - chiefly because they work
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