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Hidden Champions. Who are these small but highly successful companies? What does it take to become one? A thread! Inspired by the excellent work of @HermannSimon, @StGuinchard and the French authors of the “Owner’s Strategy”. And the Daft Punk analogy pic? More on this later.
Simon who created the concept nearly three decades ago finds that hidden champions have three main features:
-They’re market share leaders.
-They are generally small caps (most are privately-owned though)
-They are not widely known.
-They’re market share leaders.
-They are generally small caps (most are privately-owned though)
-They are not widely known.
This chart from Simon’s book lays out their playbook:
-They have ambitious leaders and focus on a niche they dominate.
-They grow by staying close to customers’ needs with quality products.
-They innovate and go global.
-They rely on decentralized orgs and top-notch employees.
-They have ambitious leaders and focus on a niche they dominate.
-They grow by staying close to customers’ needs with quality products.
-They innovate and go global.
-They rely on decentralized orgs and top-notch employees.
Hidden Champions, based on Simon’s research, are mainly industrials (69%) with average revenues of $450m. They mostly come from Germany, Austria and Switzerland (but not only) and their financial performance exceeds their peers’.
Bloch, Kachaner and Mignon in “La Stratégie du Propriétaire” have identified other characteristics of successful French family-owned companies that apply to hidden champions (which are often majority-owned by one or several families).
In short, the successful family-owned companies they researched share the following traits:
-Their goal is survival/longevity and remaining independent.
-They are frugal, reliable and balance prudence with entrepreneurial spirit.
-By playing the long game, they are resilient.
-Their goal is survival/longevity and remaining independent.
-They are frugal, reliable and balance prudence with entrepreneurial spirit.
-By playing the long game, they are resilient.
My friend @LuchesiPhilippe wrote an excellent summary (in French) of this book on @leivrek great blog here http://leprojetlynch.com/2018/08/la-strategie-du-proprietaire/
http://leprojetlynch.com/2018/08/la-strategie-du-proprietaire/
What about Daft Punk then?
They have focused on producing quality music in the EDM niche. They have innovated with each new album and have gone global from day one. Obviously, with a career spanning in three decades: they play the long game while being hidden (the masks help!).
They have focused on producing quality music in the EDM niche. They have innovated with each new album and have gone global from day one. Obviously, with a career spanning in three decades: they play the long game while being hidden (the masks help!).
The smash hit that really put Daft Punk on the global music map. It doesn’t get old:
Don’t forget to RT and like this thread!
