Surfing the long summer
How market leaders grow faster than their markets
- #14378 in Business & Finance
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Success in sport often lasts only one season or one competition. But sometimes, one team or individual can dominate a sport for years or decades. Famous examples are Steve Redgrave (rowing), Roger Federer (tennis), Tiger Woods (golf) and Lance Armstrong (cycling). Something similar is true for industries. Seasons in business come and go but some companies manage to stay in the summer for a long time, dominating a market globally and getting even stronger by outgrowing that market. To identify these 'Summer Champions' Velthuis has analysed forty global industries and determined the growth rates and market shares of 500 companies over a period of six years. Fifteen companies emerge as having been global market leaders and also having outgrown the market over the entire period. Amazon, Apple, ArcelorMittal, ASML, Canon, Caterpillar, Cicsco, Disney, eBay, Google, Hewlett Packard, Hon Hai, IKEA, McDonald's and Starbucks are enjoying a 'long summer'. Summer champions defy some of the wisdom and conventional strategic theories. They focus on cost and quality with equal measure, they enter unattractive markets when they have strong passion and knowledge (and then make them attractive), and they don't look for uncontested market spaces.
- Infinite Ideas, October 2010
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