Multiplication Into New Markets
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Transcript of Multiplication Into New Markets
Multiplication into New Markets
New Business Segments
New BusinessSegments
Existing Nuclei
Segmentation AC Multiplication Internationalisation
into Divisions
New BusinessSegments
Sub-Divisions / Distribution ChannelsMarket Product Distribution
Channel-Würth Air
-Real estate (Facility
Management)
-Training courses – Academy
for customers, employees
and the public
-Divisionalization by
branches of industry
(mechanics, catering trade,
health, office equipment,
agriculture
-Multiplication of existing
companies in foreign
countries: Eastern Europe /
China / Mexico / Brazil
-Automotive repair home
service
-Home dry-cleaner‘s
-WOW!
-Fittings
-Workwear / protective
clothing and equipment
-Hydraulics
…
-Homeshopping TV
-Internet shop
-Department store range
-Cash and carry branches /
branch offices
-Catalog sales
-Shop in shop
-Tupperware concept
-Supervise parallel lines (Reca /
Würth / InterInox…)
-Franchising
Criteria / Prerequisites for Establishing a Division
Customer group suitable for direct sellingSufficient number of customersRange of consumablesGross profit must finance the sales force and yield a good profitBuying potential per order (order value)Relatively low market entry barriers (competition, purchasing behavior)Capable of multiplicationName that clearly and unmistakably defines the Division
Analysis of the Sequence
Growth MatrixExamples taken from the Würth Line
CompanyAU (mit logo?)
CA Agro ME Install Maint Wood Constr. Bikeline Nautic INDORSY mobil
WOW Modyf
DE-WürthIT-Würth FR-WürthES-WürthFI-WürthAT-WürthBE-WürthCH-WürthNL-WürthPL-Würth RU-WürthAR-Würth….…US-WürthCN-WürthIL-WürthNZ-Würth….…
Growth MatrixExamples taken from the AC LineLänder
Standard Parts
TradeElectro
WholesaleElektronik Production RECA
Deutschland -WASI -Reisser -Ebus -Eisos -Mepla-Alfit -INOX -Conmetall -Unielektro -Solar -Grass -Normfest -Hahn & Kolb -IMS -Fega -CBT -Arnold -SCAR -Kissling -SWG-Trade -… -ICS -SWG -…-… -DiY -… -Reisser
Italien INOX Glessdox FIME HHW Pianeta SCARSpinelli Unifix SWG SOFIMFink Vaja Masten
Frankreich Inter Inox Radialex Arnold Reca Union Hahn & Kolb Normfest
Spanien HHW RECA Normfest SCAR FIME ....
China Hahn & Kolb RECAWASI W-Electronics
Serbien / Montenegro
Hahn & Kolb RECA
Kroatien WASI RECA
Romänien Reisser
Portugal
Controlling Model – focus productivity
Existing Nuclei
Segmentation AC Multiplication Internationalization
in Divisions
Example of A Success ModelHow many Würth Line Companies are there “suitable for a Metal Division“? 91In how many countries/markets is the Metal Division actually active? 43What would happen if …the remaining 48 Würth Companies recruited an additional 10 sales representatives in 2007?
ADM Sales Growth+ 480 + 57.6 mill + 4.9 %
Example of A Success ModelHow many Würth Line Companies are there “suitable for Cargo“? 91In how many countries/markets is the Cargo Division actually active? 17What would happen if …the remaining 74 Würth Companies recruited 10 sales representatives in 2007?
ADM Sales Growth+ 740 + 88.8 million + 33.5 %
Example of the Modyf Success Model
The Würth Line is active in 81 countries!Würth Modyf Companies are active in 11 countries.What would happen if …Modyf started in every remaining country with 200,000 € annual sales in 2007?
No. of Modyf SalesGrowthCompanies81 + 14 million + 63.6 %
Example of the Reca Success Model
The Würth Group is active in 81 countries!The Reca Group is active in 20 countries.What would happen if …Reca recruited 10 sales representatives with an average of 10,000 € in the remaining 61 countries in 2007?ADM Sales Growth+ 610 + 73.2 million + 23 %
Other Examples of New Markets
Stone DivisionHairdressers Division Catering Division GlessdoxTradeNauticalAgriculture
New BusinessSegments
External Growth OpportunitiesAcquisition of1. Competitors2. Manufacturers with the aim of optimizing
procurement - More favorable manufacturing opportunities
abroad- Innovative top performers in terms of competence- Acquisition of well-known suppliers …
3. Dealers – technical trade- Acquisition “close to home“- Industry: oil / gas industry- Protective clothing and equipment- Sale of gaskets and washers - Acquisition of a hydraulics specialist- …
Success Stories and Real Examples
Technical Trade:INDUNORM Hydraulik
Competitors:NORMFEST
Suppliers:MeplaAlfit
New BusinessSegments
Services from A to ZA) Money / finance
B) Consulting
C) Logistics D) Other services
Banking establishment Insurance AllfinanzGlobalization –
China Acquisition Banks Trust accounting
for Würth customers …
Personnel recruitment Business
consulting Employee
recruitment …
Logistics Würth Sea Service offer / outsourcing
–procurement service for customers Overnight delivery /
customer service School buses …
Security service Events Training courses Customer training …
Life Cycle & Demographics (Employees / Company)
0 – 6 Years (Education)
6 – 20 Years (Training)
20 – 65 Years (Work)
65 + (Old Age / Retirement)
-Playschool / After-school daycare-Kindergardens- …
-Theme parks-Training centers-Universities/colleges- …
-Further training institutions-Recreational activities- …
- Sanatoriums / living in one‘s old age (assisted, carefree living, everything is taken care of)-Support by a notary public in inheritance matters- …
Energy & EnvironmentSolar energy / photovoltaics / thermal energyEnergy (wind, water, terrestrial heat)Recycling Water supply …
Example of the Solar Success Model
What is the volume of the international photovoltaics market in 2007 :
~1,800 MWp 2015: 10,000 MWpWhat will the production capacity of Würth Solar be in 2007 : ~15 MWp , Sales ~ 42 million €Market share: 0.8 %What would happen if …Würth Solar had 10 production facilities with 150 MWp production capacity by 2015 ?Capacity incrrease:
1,000 % Sales:~ 270 million €Market share: 1.5 %
Call to the Managers of the Würth Group:
The search for new markets and
possibilities for multiplication must become an integral
element of our corporate culture!
Possibilities for Implementation:1. Commitment2. M & A Team3. R & D Group for all companies4. Trend scouts5. Budget for all FÜKO members to be
used for the investment in new ideas