Italy's competitive edge
Italy was the fifth country to honor its business leaders with a Best of European Business award as part of the 2006 competition. Lottery operator Lottomatica took home the Grand Prix at a ceremony which stressed a need for market liberalization. The atmosphere at the prestigious S. Regis Grand Hotel in Rome was celebratory: Italy's most outstanding performers were to be recognized for their achievements. But the conference entitled "The Liberalization of Italian Markets: Companies' Competitiveness and Consumer Orientation" also set the tone for a in-depth discussion about the country's economic future.. Honoring Italy's most competitive companies in three categories – Growth, Europeanness and Cross-border M&A – was thus only part of the evening's proceedings. Many of the executives, including Francesco Caio, Deputy Chairman of Lehman Brother in Europe and Camillo De Bernadinis, CEO of Conad, came to discuss the state of Italian competitiveness with peers from the world of politics and academia, such as Maurizio Dallocchio, President of Bocconi University and Senator Paolo Giaretti from the Ministry for Economic Development. | ||||
Ahead of the awards ceremony honoring some of Italy's best known fashion houses, DIESEL and Geox in the "Growth" category and the presentation of the Grand Prix to lottery operator, Lottomattica, speakers addressed the challenge Italy's new government faced in liberalizing the Italian market. Roberto Crapelli, Managing Partner of Roland Berger Italy outlined what was ahead for the Prodi government: "There is still a lot to do to achieve the liberalization of markets in Italy, but also in places where things have been done, consumers and enterprises have yet to take advantage of it.” Until now, Crapelli noted, the Italian economy had suffered from a "passive opposition and a cultural problem." The time had come for true change: "The good news is that options are still open. We need structural reforms in the next 36-48 months.” The high-level speakers at the awards ceremony agreed that in a market, in which liberalization was deemed insufficient, competitiveness could push companies to excel and become true global players, although politics had to follow suit and support these endeavors. Quoting Jerry Flint of Forbes magazine, the consultancy's Founding Chairman, Roland Berger, weighed in on this point:"Competition is a painful thing, but it produces great results." | ||||
He went on to say that competition “reawakens creativity, boosts innovation, spurs the creation of added-value, while keeping costs, and consequently market prices, as low as possible.” The winners of the Italian competition had proven that they excelled in maintaining their competitive edge. Aside from DIESEL and Geox, household appliance manufacturer INDESIT and foodservice equipment company, the ALI Group were honored for their strategies in an enlarging European market. For UniCredit, the banking giant, it was the second time on the podium. The company had claimed the 2005 award in the New Europe category. This year, the high-level jury selected it for its successful acquisition of the HypoVereinsbank in the newly created "Cross-border M&A" category. Famed red liquor producer Campari took home the SME award in the same category. As in all previous national competitions, winners were chosen from a shortlist drawn up based on publicly available information. This year's jury members included CEOs from companies who had claimed top honors in 2005: Andrea Guerra, CEO of Luxottica and Francesco Mengozzi, Director of Poste Italiane Divisione Bancoposta, joined four other jury members for the careful deliberations that led to this year's list of winning companies. | ||||
And the winners are…
Growth DIESEL, best known for its fashionable jeans won the large enterprise award in this category. In its verdict, the jury pointed to the company's "rapid and continuous dimensional growth." It praised DIESEL's capacity to target a selective clientele with the innovative concept of luxurious casual wear, which can be at once exclusive and inclusive, but never for the masses, showing flexibility and rapidity in interpreting the market’s needs. The brand had gradually reinforced its identity toward building "a life philosophy," which had evolved into a true “Diesel” style. Other competitors had unsuccessfully tried to imitate its strategy. Another clothing company, footwear manufacturer GEOX, walked away with the SME award in this category. The jury saw GEOX as a role model in terms of originality of concept originality and for the "simple and efficient type of business," which had allowed the company to reach record sales figures and continuous growth. "Geox' success is proof of the importance of investment in research and development and intellectual capital in an extremely important sector for the Italian economy, that of foot wear and clothing," the jury brief said. Europeanness Household appliance giant, INDESIT won the prize for outstanding European strategy for large companies. Its international leadership role and a consistent presence in Europe was highlighted by the jury in its decision. INDESIT's Europe strategy was inspired by attention to quality with flexible usage and design and thus represented a "virtuous example for the growth of Italy’s industry in the global market," according to the jury brief. SME winner in this category was the ALI Group, which designs, manufactures, supplies and services a complete range of equipment for the foodservice industry. Over time, the jury noted, the company had established a "mature international presence," with the aim of progressively consolidating its position in the European market as a platform for leadership in the world. Its growth was attributed to the acquisition of 48 companies with as many different brands all highly specialized in their own sectors. Despite this variety, the ALI Group had managed to sustain cohesion within the firm, while maintaining single brand identities. Cross-Border M&A The UniCredit Group, last year's winner in the New Europe category, claimed the top prize in the Cross-border M&A category this year, largely due to its handling of the HypoVereinsbank operation. Despite the organizational differences and divergence in the business model, UniCredit's management had successfully steered the merger with HypoVereinsbank. The jury credited this success to the banking group's proven experience in the field of acquisitions. According to the panel of judges "the Unicredit Group can now face the great challenge of exploiting the assets of this new business reality, toward the goal of achieving beneficial competition among major global financial groups." Gruppo CAMPARI, the well-known spirits producer had focused on international growth over the years examined, acquiring three of the most important scotch/whisky brands in the world. Members of the jury praised its "extraordinary finance operations," which had allowed the company to assume a leadership position in marketing and distribution, consolidating its position in Europe and America. Grand Prix Lottery operator, Lottomatica was awarded the evening's Grand Prix for its "extraordinary" acquisition of a very large US company, thus diversifying its business. In the jury's eyes, the company had "represented an example of strategic leadership and medium-to-long term vision." The company had mapped out a plan for international development "with a brave choice, from which the European business community will be able learn." If you have questions or comments regarding this, or any other story, please do not hesitate to contact us:  | ||||
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