2023-09-07 16:59:25
Cologne (ots) – Successful companies focus on marketing, product, pricing and sales to drive growth. This is shown by the results for Germany of the “European Growth Study 2023”. The Europe-wide study by the global strategy consultancy Simon-Kucher provides insights into growth areas and shows the areas in which successful companies differ from less successful ones.
- Macroeconomic developments slow entrepreneurial growth
- Companies are less willing to take risks and are more likely to focus on existing business areas when it comes to their growth targets
- The use of new technologies such as artificial intelligence has not yet fully arrived in companies
Companies attach great importance to growth levers from the areas of marketing, product and service portfolio, pricing and sales. 71 percent of those surveyed rate brand strategy and brand awareness as important growth levers. According to the study, however, less successful companies overestimate the effect of the brand as the sole factor and, in comparison, rate product quality as less important. 63 percent of less successful companies consider brand strategy and brand awareness to be important factors in generating growth.
The product and service portfolio also plays an important role: while the majority (89 percent) of successful companies see product and service quality as a key growth driver, only 36 percent of less successful companies do so.
A similar dynamic can be seen in pricing. At 28 percent, less successful companies use an optimized price model much less frequently than successful companies (85 percent). Overall, six out of ten decision-makers want to focus on an optimized pricing model. Almost three quarters want to continue adjusting the price level to the market.
“Successful companies are successful because they understand the importance of commercial excellence and focus much more on the growth levers in the areas of marketing, product, pricing and sales,” says Dr. Gunnar Clausen, Managing Partner Central and Northern Europe at Simon-Kucher. “Companies that don’t reach their growth targets have to analyze and use these growth levers and thus consistently align their business with customers and the market,” says Clausen.
Macroeconomic developments as a barrier to growth
A shortage of skilled workers (40 percent), inflation (38 percent), the energy crisis and political instability (37 percent each) are slowing down the growth of many German companies. As a result, issues such as climate and sustainability are increasingly being pushed into the background. Only 20 percent of companies manage to use macroeconomic events to their advantage.
69 percent of the companies rely primarily on organic growth
In uncertain times, companies in Germany tend to prefer the well-known and concentrate on their core business. The vast majority (69 percent) of the companies are planning to grow primarily from their own resources, i.e. organically. Around 60 percent focus on the status quo and rely primarily on existing business areas, customers, products and regions. The same applies to Europe as a whole: Here, too, companies prefer to stay in familiar territory. Successful companies, on the other hand, act differently and also achieve growth by expanding into new business areas, customers and products.
According to the study, seven out of ten German companies see themselves in a good position to achieve their growth targets this year. Almost two thirds are of the opinion that they are in the same or even better position compared to direct competitors and the overall economic development in Germany. “On the one hand, an increased pursuit of organic growth shows that companies have confidence in their own strengths and are optimistic about their growth prospects,” comments Andreas von der Gathen, Co-CEO of Simon-Kucher. “On the other hand, the results are also an early warning signal for a lack of investment, which is necessary to boost progress,” says von der Gathen.
52 percent of companies plan to use artificial intelligence
In order to achieve growth, German companies want to increasingly use new technologies in the future. The interest is generally high. The most frequently represented today are: 5-G (34 percent), Cloud & Headless IT (33 percent), Internet of Things (29 percent), Big Data & Advanced Analytics (28 percent).
The study also shows that artificial intelligence (AI) gives digital transformation a boost. More than every second company (52 percent) plans to use AI. This is followed on the popularity scale by the digital trends Augmented & Virtual Reality, Internet of Things and the expansion of 5-G, each with 49 percent.
“Successful companies rely more heavily on new technologies than others. The companies that set the course early on for more openness to technology have better growth opportunities than others,” says Clausen von Simon-Kucher.
All in all, a similar picture emerges in a European comparison. It can be seen that successful companies across Europe are concentrating more on the growth levers of marketing, product, pricing and sales. Likewise, the same macroeconomic developments across Europe, such as a shortage of skilled workers or inflation, are inhibiting growth. The interest in using new technologies in Europe is similar to the German results.
About the study
These are the results of the representative study “European Growth Study 2023” by the global strategy consultancy Simon-Kucher in cooperation with the market research institute YouGov, which digitally surveyed more than 1,300 decision-makers throughout Europe (including 300 from Germany).
About Simon Kucher
Simon-Kucher is a global management consultancy with over 2,000 employees in 30 countries worldwide. Our focus: “Unlocking better growth”. We help our clients grow responsibly and sustainably by optimizing every aspect of their business strategy, from products and pricing to innovation, digitization, marketing and sales.
With 37 years of experience in monetization and pricing, we are recognized as the global leader in pricing advice and business growth.
Questions & contact:
We are at your disposal for questions and detailed information:
Roxana Müller (Communications & Marketing Manager)
Tel.: +49 160 92180752
Email: roxana.mueller@simon-kucher.com
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