Twelve perspectives for growth
Dr. Ricarda Engelmeier
Managing Director MMK, Founder and CEO MyCollective
Prof. Dr. Dr. h. c. mult. Horst Wildemann
Managing Director TCW, Technical University of Munich
How can companies overcome economic stagnation and grow despite turbulent times? Companies with established structures and processes often find it difficult to find answers to these questions. The dialog with other companies and research as well as the discussion of successful case studies are helpful here. At the 32nd Munich Management Colloquium on March 11 and 12, 2024, a cross-industry know-how transfer will take place.
In order for companies to achieve their goals and remain competitive despite turbulent times, growth levers must serve as drivers for strategic investments, organizational developments, market presence and expansion.
1. Realignment of the strategy
The strategic realignment of a company is the result of continuous monitoring of its market attractiveness and its own technological capabilities. As a pioneer in the electric vehicle industry, Tesla gained a competitive advantage for a long time through technological leadership and developed from a niche provider to a global automotive giant. Many Chinese manufacturers such as BYD and MG are following suit with aggressive price and cost leadership strategies. German car manufacturers were successful with high-margin premium vehicles.
To achieve new growth, they must offer sustainable mobility services for the masses and maintain their differentiation from the competition. Prof. Oliver Zipse, Chairman of the Board of Management of the BMW Group, emphasizes the importance of system integration as a decisive core competence for future success. Other industries can learn this approach from the automotive industry as an answer to their challenges.
2. Modernization of leadership
A modern management style promotes creativity, personal responsibility and agility. Flat hierarchies, open communication, employee involvement and shared values are key. Ethically oriented leadership that is committed to environmental protection and social responsibility strengthens customer loyalty and employer reputation in order to counter the shortage of skilled workers and attract new talent. Modern management styles can be found at numerous innovative companies in the German economy, from Airbus Operations GmbH to Telekom Mobility Solution.
3. Reducing the complexity barrier to growth
Structures and processes that have evolved over time can lead to a high level of complexity that hinders growth and change. Rittal shows how modular building blocks can increase external product diversity and reduce internal complexity. This leads to cost savings, lean processes and an enhanced value proposition. Strategic spin-offs, such as that of the turbocharger manufacturer Accelleron from the technology group ABB, are another form of complexity reduction in order to focus on other core business areas of the future.
4. competence development for sustainability and digitalization
Tapping into growth potential is linked to recognizing and picking up on current trends. Tesa shows how building expertise in sustainability and digitalization leads to increased productivity and new products. CEO Dr. Norman Goldberg has aligned his organization with these two cornerstones of the corporate strategy. Sustainable adhesive tapes and debound-on-demand adhesive tapes not only strengthen the circular economy, but also attract new customers.
The growth in these areas is the result of a stringent plan involving the development of new skills and the enrichment of the company with new knowledge carriers. The GEA Group is pursuing similar goals with its "Add Better" sustainability label. CEO Klaus Kleber emphasizes that strict tests, standards and partnerships with TÜV ensure added value for the customer in order to invest in sustainability.
5. Designing new innovation landscapes
The innovation landscape is changing. The increasing complexity of technologies and products is reinforcing the trend towards purchasing external innovations. Development and purchasing organizations must learn how much specification is given to the supplier, how offers are evaluated and under which conditions it is more advantageous to acquire the technology or the entire company. At the same time, the importance of open innovation and the sharing of intellectual property rights is increasing. Microsoft uses open innovation through the integration of GitHub, which enables developers worldwide to drive their projects forward together and strengthen the company's innovative power. Dassault Systèmes shows how strategic acquisitions, such as that of Medidata Solutions, can innovatively expand the life sciences sector.
6. Adaptation of the product portfolio
Adapting the product portfolio enables companies to react flexibly to changing market requirements and customer needs and remain competitive. The aim is to avoid portfolio overlaps and gaps, reduce overengineering and offer products with multi-price features and resilience-enhancing differentiation. In industry, AGCO has been able to increase efficiency through cross-brand modularity and standardization along the lines of the automotive industry, while targeted market analyses and regionalization address a broad customer base. Interroll has also expanded its product portfolio in the area of conveyor technology through the acquisition of new technologies and positioned itself as a total solution provider for the market.
7. Expansion of services
Another aspect of product portfolio optimization is the design of hybrid service bundles in the form of servitization. Zeppelin Baumaschinen is an example of a traditional company that has tapped into new business areas with this approach. The online platform klickrent has revolutionized the rental market for construction machinery and displaced competitors. Automotive companies, agricultural machinery manufacturers, plant and machinery manufacturers and producers of household technology have also expanded their product portfolios in recent years by introducing digital services and intelligent technologies. AGCO offers precision farming solutions such as agricultural software, GPS-controlled machines and data analysis tools as well as training, maintenance and repair packages. Servitization enables farmers to work more efficiently and sustainably. New sources of revenue are opened up and the competitive position is strengthened. BSH is driving forward the networking of its household appliances and creating a completely new end customer experience that is closely associated with the brand.
8. Market skimming via sales channels and pricing policy
Through targeted use and optimization of different distribution channels and strategic pricing, companies can effectively address different customer segments and expand their market position. Dormakaba, a global leader in access solutions, has refined its global market strategies under the leadership of Till Reuter. With a differentiated pricing policy, Dormakaba can address both price-conscious and quality-oriented customers, open up new markets and strengthen its global distribution network with direct and indirect channels. The wide range of product options, from basic models to high-end security solutions, maximize consumer returns through additional, multi-price features.
9. Strengthening value creation structures and partnerships
Growth levers influence the competence profiles of companies. In order to realize the business effectively and efficiently and to focus on core competencies, a realignment and strengthening of value creation structures is required. The basis for this is partnerships with other companies and players in the ecosystem. One example is the cooperation between the robot manufacturer KUKA and the insurance company Munich Re to offer "Smart Factory as a Service". Another notable example is Siemens, which is optimizing its value creation structures and expanding new locations through strategic partnerships. Siemens is investing heavily in Germany and is driving forward the development of digital factories, smart production systems and the industrial metaverse. These initiatives aim to improve vertical integration and strengthen innovation by integrating state-of-the-art technologies and digital platforms.
10. Internationalization of business activities
The internationalization of business activities opens up new markets for companies and strengthens their global presence. By investing in different countries, companies can diversify their value chains and benefit from regional advantages. An impressive example of this is the German wind turbine manufacturer Enercon. As part of its turnaround plan, Enercon has invested significantly in Asian markets such as India and Vietnam after years of economic difficulties. These strategic moves have enabled Enercon to expand its production capacity, utilize local labor and operate closer to key growth markets. These measures have significantly improved Enercon's global market position, cost position and competitiveness.
11. securing financing
Securing solid financing is crucial for sustainable growth and a company's ability to innovate. Various forms of financing enable companies to realize their projects and expansions while ensuring financial stability. Flughafen München GmbH, for example, successfully refinanced itself on the capital market at the beginning of the year in order to be able to make important future investments in infrastructure, but also to repay existing loans. The Kion Group, led by Rob Smith, also has solid financing for its growth by focusing on its core business and key research activities for the future.
12. Quality and continuous improvement
Quality is a decisive differentiating factor in competition. In product tests, for example, Kärcher is able to repeatedly outperform its direct competitors and thus strengthen its brand. With the new COO Markus Limberger, a manager with proven supply chain excellence expertise joined the Management Board at the beginning of the year. Quality combined with continuous improvement and early warning systems for risks strengthens a company's performance and resilience. One concrete example is BMW's efforts to strengthen its value chain through a partnership with Northvolt, a Swedish manufacturer of battery cells. The aim of this cooperation is to ensure high-quality and sustainably produced battery cells for electric vehicles, while BMW concentrates on its core competence in vehicle construction. However, quality problems and critical reports about occupational health and safety have led to a major order worth billions being canceled and BMW now having to look for new partnerships. By recognizing this early on, the growth targets set remain achievable.
At the 32nd MMK 2025, all growth levers will be presented by the speakers with practical solutions.
About the #MMK25 and its hosts
At the 32nd Munich Management Colloquium (MMK) from March 11 to 12, 2025, top managers and executives from leading companies will present and discuss current perspectives and cross-industry best-in-class solutions for growth and transformation. In a dialog between research and practice, the event provides answers and impulses for more inventiveness and entrepreneurship. Top managers, executives and junior staff are invited to discuss and exchange experiences. The resulting networking is an important building block for change and joint growth. The following and other top speakers will be speaking:
Ricarda Engelmeier is Managing Director of Münchner Management Kolloquium GmbH. Horst Wildemann is a professor at the Technical University of Munich and Managing Director of the management consultancy TCW (www.tcw.de) and founder of the annual Munich Management Colloquium. At the event, research and practice come together to discuss current challenges and solutions. Information on the event and tickets are available at https://management-kolloquium.de/