Innovative into the future…Conclusion

To learn from the best
Successful entrepreneurs are not a product of accident or just lucky in their actions. Learning from the best means to see and to understand one entrepreneurs approaches and ways how to do things. Because all of them have more or less 4 strategies in common which they heed. And those strategies enables those companies to compete even in the highly competitive global market.

Strategy 1: Sense of responsibility among employees
More or less 20 % of the daily time an entrepreneur spend for his employees because they build the basis for success at the company. Also the size of workforce simplifies the personal contact.
Growing companies follow a cooperative leadership. In other words employees are integrated in strategic questions concerning the company. Besides managing by objectives, project management is a key to increase the sense of responsibility and motivate employees. Another side effect with project management is the exchange of information in cross functional teams (CFT’s) inside and outside companies.

Strategy 2: Proximity to customers
Entrepreneurs spend even more time for the customers than for their own employees. Each 3rd hour they share with clients or potential customers. Successful companies are concentrated and focused on less but very profitable clients in already existing markets. Also new product ideas or solutions are coming most of the time from customer side. Those products are very customized and allow companies to stay in the high price market.

Strategy 3: High specialization
Profitable growth is happening and possible either at profitable niche segments, high technology or with unique services. In those fields the competitive advantage is comparably high because of the very difficult market access. Entrepreneurs are enlarging high innovative products in their segments and products are normally not older than 3 years. Research and development is still important but customized solutions initiated through existing clients help to build a new customer. And those have a high share of turnover.

Strategy 4: Internationalization – new chances abroad
Not since yesterday are German companies strong in export. But even small and medium size companies are recognizing chances in foreign countries. And for all of them is clear that this is the future profitable market – abroad. Mainly Europe is goal for German companies but also China and USA becoming more important and might be the next future step towards profitable growth.

Tags: efficiency, innovation, profitable growth, strategy

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