Leaders in a Changing Landscape

Despite a meltdown in the financial markets and the most severe recession in decades, a select group of companies continues to stand out. Combining long-range strategic planning with nimble execution, 25 companies far outperformed the competition and were named
A.T. Kearney Global Champions for 2009.

Leading the way is Japanese video-game maker Nintendo, followed by Internet behemoth Google and electronics maker Apple from the United States, and construction company Doosan and automaker Hyundai from South Korea (see figure). These companies averaged nearly 15 percent growth between 2004 and 2008, compared to the entire sample—the world's 2,500 largest international companies—which, on average, suffered an 8 percent loss.

What propelled the Global Champions to the top? We found five common characteristics:

Leadership continuity. From Satoro Iwata (Nintendo) to Steve Jobs (Apple) and Carlos Slim (America Movil), this year's Global Champions are led by charismatic leaders, many of whom founded their own companies or whose families still control them. At a time when countless firms are run by professional management, it is remarkable that these publicly listed corporations have maintained the characteristics of privately owned firms, despite their size and international reach.

Size doesn't matter. The list again confirms that size alone is not a precondition for superior growth—if anything, it might be a hindrance. While some may say that "big is back," our analysis of the top-line and value-growth performance of corporate giants does not provide any support for this hypothesis. We find that smaller, more agile competitors can compete against the giants.

Figure: The Global Champions, 2009

Changing gears. As the financial crisis forced some fast-growing companies to scale back, the Global Champions were able to change gears quickly and shelve merger and acquisition plans because of deteriorating market conditions or lack of funding. BHP Billiton's decision to stop its takeover of rival Rio Tinto is a case in point.

Staying focused. Overall, companies that focused on organic growth have done much better in the face of the economic crisis. Knowledge—and brand—intensive leaders Apple and Google are two Global Champions equipped with strong balance sheets and a rich pipeline of new and innovative products. Although they experienced major losses initially, investors recognized the strength of their business models and stocks of Apple and Google are now trading at pre-crisis levels.

Carpe diem: crisis as opportunity. The recession has forced many Global Champions to embark on rigorous restructuring initiatives to contain cash flow, curb costs and reduce capital investments. At the same time, they have used the crisis as an opportunity to get into position for future growth. Adjusting capacity, streamlining organizational structures and reconfiguring supply chains will make them leaner and better prepared to take advantage of improved economic conditions.

For more information about the study findings, see "The A. T. Kearney Global Champions 2009" at www.atkearney.com or contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .