PwC Romania launches the first business strategy book that analyzes the development model of Romanian companies

 PwC Romania launches the first business strategy book that analyzes the development model of Romanian companies

Bucharest, 5 July 2011. PwC Romania has launched today, during a special event hosted by the National Bank of Romania, the business strategy book “Success formulas for the next decade. Companies that have overcome the crisis”,  the first such book published in Romania that includes a detailed analysis of the successful strategies of international and local companies from various industries.

The book, published at the Publica printing house, was written by a team of PwC Romania consultants, lead by Vasile Iuga, Country Managing Partner, PwC Romania and Managing Partner PwC South-Eastern Europe and Dr. Andrej Vizjak, Partner, PwC Romania, Consulting Leader, South-Eastern Europe.
 
“In the current economic context, where concentration tendencies in all economic sectors are very strong, access to financing is rather costly and difficult and globalization is putting pressure on companies to compete worldwide, this book identifies a series of strategies through which companies can not only survive, but also thrive”, declared Andrej Vizjak.

The central idea of the book is that, based on the degree of internalization and product diversification, successful companies can be divided into four main categories: the local specialist, the regional hero, the international champion and the industry shark, each with specific growth patterns

The Local Specialist defines a smaller company with a reduced level of internalization and product diversification. These buy companies with a market value of less than 3 billion USD, which operate on a specific market segment in one country or region. They rely mainly on organic growth but also acquire smaller companies in their regional industry segment

The Regional Hero profile includes companies of medium size, with a reduced level of internalization, with a national or regional presence and high level of product diversification. These usually acquire companies with a market value of less than 3 billion USD, from different sectors than the ones in which they operate, but from the same country or geographical region.

The International Champion refers to medium sized companies, with a high level of internationalization, yet a reduced diversification of products and services. These acquire mostly companies from various regions globally, but from the same sector of activity, with a market value of less than 3 billion USD.

The Industry Shark profile defines large companies with a high level of internalization and product diversification, usually with a market value of over 20 billion USD. These target for acquisition both companies with a market value of over 3 billion USD, as well as smaller players from various industries and geographical regions around the world.

“We have tried to define the development stage of several important Romanian business players, based on the framework introduced in the book, to identify the success formulas that can be applied so that these companies emerge as winners of the next economic growth cycle, while some develop into true global actors”, stated Vasile Iuga.      

“In today’s world, the traditional business strategies became irrelevant, as organic growth is not sufficient anymore to ensure success in a concentrating global economy. The financial crisis has even intensified this pressure and in most industries this is leading to a new wave of M&A activities. The book shows that the future winners are not only the biggest companies but those which develop the profile of an industry shark, local specialist, regional hero or international champion for their business fields.”, said Andrej Vizjak.

The book proposes a model for growth based on the analysis of 600 successful companies selected from the largest 8,000 companies worldwide.

“We hope that this book will offer a useful guide for Romanian companies as how to prepare for the future global competition. The childhood days of Romanian capitalism should be over by now as we emerge out of the recession of the past three years. We should now prepare for growth yet again and be ready to compete with the largest business players by identifying market niches where we can excel”, concluded Vasile Iuga.

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