Published by:
Harvard Business Publishing
Length: 8 pages
Abstract
Germany''s small and midsize companies, known as the Mittelstand, are a hidden source of wisdom on global competition. Companies like Krones, Korber/Hauni, Weinig, Webasto, and TetraWerke dominate their markets with world market shares ranging from 70-90%. When combined, they account for the bulk of Germany''s trade surplus. The success of the Mittelstand lies in a set of five common practices. These companies all: 1) combine a narrow product-market focus with broad geographic scope; 2) perform best in the areas customers care most about; 3) balance closeness to customers with deep technical knowledge; 4) rely on themselves, especially for R&D; and 5) foster close ties between managers and workers.
About
Abstract
Germany''s small and midsize companies, known as the Mittelstand, are a hidden source of wisdom on global competition. Companies like Krones, Korber/Hauni, Weinig, Webasto, and TetraWerke dominate their markets with world market shares ranging from 70-90%. When combined, they account for the bulk of Germany''s trade surplus. The success of the Mittelstand lies in a set of five common practices. These companies all: 1) combine a narrow product-market focus with broad geographic scope; 2) perform best in the areas customers care most about; 3) balance closeness to customers with deep technical knowledge; 4) rely on themselves, especially for R&D; and 5) foster close ties between managers and workers.