ENTREPRENEURSHIP

MANAGEMENT
JURY PROJECT

SUBMITTED BY-
ABHINAV ASHISH
ANKIT SHREYASH BHARDWAJ
 INTRODUCTION

 Hilti Corporation (Hilti AG, also known as Hilti Group) is a Liechtenstein multinational
company
 It develops, manufactures, and markets products for the construction, building
maintenance, energy and manufacturing industries, mainly to the professional end-user.
 It concentrates mainly on anchoring systems, fire protection systems, installation systems,
measuring and detection tools (such as laser levels, range meters and line lasers),
 Power tools (such as hammer drills, demolition hammers, diamond drills, cordless electric
drills, heavy angle drills, power saws) and related software and services.
 TYPE CORPORATE

Industry Manufacturing/SERVICE

Founded 1941

Headquarters Schaan , Liechtenstein

COMPANY Key people Martin and Eugen Hilti

PROFILE Products Power Tools, Anchors,

Diamond Drills, Laser
Products, Firestops
Number of employees 29,000 worldwide (2018)

Website www.hilti.group
Key milestones

1941 founded by 1950s 1979

Martin Hilti (1915 - Expansion of Inauguration of HQ
1997) as a mechanical international direct for North and Latin
workshop in Schaan, sales network, America at Tulsa,
Liechtenstein starting in Europe Oklahoma, USA

1948 1957 1967

Development of a Launch of world’s first
safe direct fastening Launch of world’s
powder-actuated first rotary hammer
fastening system tool based on piston
principle based on electro-
pneumatic principle
Key milestones

1994 1999
Founding of Hilti Asia Global Account Management
Ltd. in Hong Kong Strategy in place to support
and expansion of “Champion 3C” Strategy
business in East Asia

1983 Recent innovations

1986 1998 e.g.: Combi-hammer Hilti TE
Introduction of Serving customers Raising customer’s
chemical fastening with foams and efficiency by 76-ATC with “active torque
using Hilti injection firestop systems introducing laser control” protects users and
technique (Hilti HIT) positioning systems increases working comfort
 ORGANIZATIONAL CHART
HILTI

EXECUTIVE
HEADS

MARCO MATTHIAS BOARD OF

DR. DR. STEFAN MEYRAT GILLNER DIRECTORS
CHRISTOPH NÖKEN NORTH CORPORAT JÖRG
LOOS FASTENING AMERICA E KAMPMEYE
CHIEF TECHNOLO MARKETS FUNCTIONS R
EXECUTIVE GY AND AND AND CFO
OFFICER LOGISTICS EMERGING ENERGY &
REGIONS INDUSTRY

HEINRICH MICHAEL
FISCHER HILTI BARBARA
PROF. DR.
Chairman Honorary KIM MILIAN CARLA DE DANIEL
PIUS
of the Chairman FAUSING THORALFSS GEYSELEER DAENIKER
BASCHERA
Board of of the ON
Directors Board
HILTI’S OPERATING
MARKET

 55 percent of the revenue

comes from Western
Europe,
 21 percent from America,
 12 percent from Asia and
another
 12 percent from Eastern
Europe and the Middle
East
HILTI’S TARGET MARKET

 Professional users in users in different areas of building industry and the

house renovation industry
 Main market : Europe and Africa – North and Latin America
 Main competitors : Black and Decker , Illinois tool works ( ITW ) , Bosch ,
Wurth , Makita and Techtronic Industries ( TII )
 Competitive advantage : close relationship to customers
CUSTOMER SEGMENT

Customers are segmented into :-

 building construction,
 interior finishing,
 mechanical,
 electrical,
 civil engineering,
 steel/metal and solar trades,
PRODUCT LINE OF HILTI

 Product lines of the company include mining, cordless, measuring systems,

direct fastening, drilling and demolition, anchoring systems, diamond
coring and cutting, installation systems, cutting and sanding, screw
fastening, fire stop and foam systems.
 The company provides a deep product range of tools, inserts and
consumable goods for construction sites.
 These products are specialized on the trade where the customer comes
from.
 The system solutions in form of product baskets are provided to customers
in order to fulfill all their applications
Product lines

Drilling & demolition systems

Direct fastening systems

Anchoring systems

Diamond systems

Fire Stop / Foams

Installation systems

Positioning systems

Cutting and sanding systems

REVOLUTIONARY PRODUCT THAT
CHANGED HILTI’S FATE

 LINE LASERS:- line laser tools help you save

time by projecting laser beams on walls,
floors or ceilings before workers even pick
up a tool. The result is greater accuracy,
less delay

 ON!Track:- gives you complete clarity into

what equipment and tools you have,
where you can find them, who is using
them, and when they need maintenance.
SERVICES OF HILTI

The three main services are :-

 fleet management,
 lifetime service and
 engineering support.
Fleet Management

 Productivity:- Hilti Fleet Management helps you to choose the right mix of
tools and to limit tool redundancy.

 Cost management:- Hilti Fleet Management is also designed to be simple

to budget with predictable costs.

 Back office efficiency :-Hilti Fleet Management can reduce administration

for purchasing and accounting.It eliminates the need to get quotes for
repairs and can simplify your process for lost or stolen tools.
LIFETIME SEVICES

 No repair costs for up to 2 years from the date of purchase

 Limits to the cost of repairs for maximum cost control
 Lifetime manufacturers warranty
Engineering Support

 Technical advice by phone

 Technical advice on site
 Engineering judgements
 Software training
 Accredited training
 Engineering design
 Drawing services
 Onsite testing
COMPETITIVE ADVANTAGE

 Hilti differs from other companies by offering even more service and a
more extended warranty package.
 But this goes at a cost. Product prices are very high.
 Compared with DeWalt, we find only slightly less service for a slightly lower
price. Other companies sell very reliable machinery but cut costs in
personal customer service and warranty coverage.
 In conclusion: Hilti is the best choice when fast and reliable service is
desired, and, in our opinion, shares the first place with DeWalt when
looking at performance com-pared to cost. But don’t expect friendly
prices.
HILTI’S CURRENT SUPPLY CHAIN
HILTI’S CURRENT PLANNIING AND
CONTROL
REVENUE GENERATION

HOLES INSTEAD OF HAMMERS!

Hilti noticed that contractors make money by using tools, not
by owning them. So instead of selling equipment, it rethought its revenue
model and began selling the use of the equipment instead.
SOLVING PROBLEMS
Hilti’s innovative approach to charging for its tools solved a variety of
problems with which the construction industry had been unsuccessfully
grappling
CONT.

HIGHER MARGINS
the new solutions model had higher margins than selling each product one
by one, plus the ongoing service contracts led to longer and deeper
customer relationships. This, in turn, provided Hilti with even greater insights
into its customers’ needs.
ADAPTING TO EVOLVING CUSTOMER NEEDS
Hilti rethought its revenue from a product-based model to a product-service-
solutions-support model with great success,
HILTI BUSINESS MODEL
PARAMETERS IN BUSINESS MODEL

 PURPOSE AND VALUES-

Integrity, courage, teamwork, commitment
 Culture Journey-
The Culture Journey binds people to act together. It is a corporate initiative
that intends to make sure that the corporate purposes and values described
before are meaningful to all employees working at Hilti.
THE CHAMPION 3C STRATEGY

 Customer: they want to be their customers' best partner. customers

requirements drive their actions.
 Competency: commitment to excellence in innovation, total quality,
direct customer relationships, and effective marketing.
 Concentration: focus on products and markets where they can achieve
and sustain leadership positions.
CUSTOMER’S NEED

 Product Portfolio Management: This aspect essentially deals with the design of new
products..
 Market Reach: Considering the Market Reach process, five different sales channels are
differentiated, namely (1) Hilti centres, (2) Territorial sales people, (3) Pro Shops, (4) B2B (incl.
Hilti online), and (5) Customer Services.
 Supply Chain Management:. Supply chain management deals with the logistics and the
warehouse management by means of logistic centres.
 Professional Services: These processes include delivering after sales services. An essential
part is dealing with repair services which should be provided with a favourable quality and
speed. Another important part of Professional Services is fleet management:
MARKETING STRATEGY - PRODUCTS

 Hilti continuously innovates her products. An increasing amount of effort and funds is
invested in R&D to enlarge the number of products and to improve them. Hilti will only
continue with a product if it is veri-fied that it matches customer needs significantly
better then competitive products.
 All products are of a high quality. This is equivalent to a high level of reliability. This is
very important for a lot of companies, because they are dealing with deadlines and
their reputation is at stake. The products are of such kind a quality that they should last
a lifetime.
 The products are designed in view of efficiency. A good machine can save the
consumer a lot of time. In a company’s perspective this saves a lot of money.
PRICE

 The price level of the products is quite high in comparison to the other
competitors. So Hilti doesn’t use the low price strategy to get an
advantage.
 prices emphasize the image of a high quality manufacturer.Hilti is a
company with a long history and has accomplished to make it-self the
main contestant in the area of professional construction-tools and
materials.
PLACE

 In the Netherlands Hilti’s products are solely available at Hilti-centres or by

contacting one of the many salesmen operating all across the land.
 So you can’t find these products at your local do-it-yourself shop or at the
wholesale dealer. But some shop-in-shop locations do exist, though they
are completely run by Hilti itself.
 In the Netherlands there are ap-proximately 20 Hilti-centres.
 At Hilti’s website you can find most things you need as a customer. You
can order products, inquire about offered services, find technical data of
products and get into contact with Hilti advisors. To use most online
services registration is obligatory to ensure customer-oriented services,
even online.
PROMOTION

 Hilti’s main objective in promotion is to emphasize its quality and service. Hilti does
this by providing lifetime warranty on her products. Also the slogan “outperform,
outlast” states the advantage of Hilti.
 Because Hilti is particularly a ‘business to business’ operation, it uses different
channels than most other companies to reach its customers. You won’t find any
Hilti advertisements in the newspapers, simply be-cause the readers aren’t part of
the target group.
 Hilti runs several campaigns. For example the price reduction campaign ‘buy
more, get more’.
 Customers frequently receive emails with the latest information or a newsletter.
Also a magazine called ‘Hilti Impulse’ is brought out on a regular basis.
INTER-DEPARTMENTAL ISSUE 1982

 Another crisis occurred during the worldwide recession of 1982, One flaw
identified at the time was the failure of big departments in the
organization to talk to smaller ones.
 the company introduced a pioneering training program that it called
“Leadership Makes the Difference.” It wanted to blow fresh air throughout
the organization, and it looked outside for unconventional individuals to
set up the program.
 By 2003, the program was so successful that the company won the
prestigious Carl Bertelsmann Prize in recognition of its “exemplary
corporate culture.”
SUCCESSION PLANNING 1972

 in 1972, his Mr.hilti suffered a severe heart attack, and Michael decided to
return to Liechtenstein to help the business The members of the three-man
executive board appointed spent all their energies fighting one another.
 Today, succession planning is taken very seriously at Hilti, and nobody
comes onto the executive board (and gets into the running for the top
job) without first having had significant experience inside the company.
 When an executive director died on a Friday at the age of 49, his
successor was announced the next Monday.
FINANCIAL CRISIS

 In 2009 net sales decreased by 855 million CHF most significant impact:
world financial crisis demand in the construction industry decreased
 A program was introduced to reduce staff by 10 percent over a two-year
period, and employees at headquarters took a pay cut — with senior
management taking a larger cut than the rest.
 All travel was restricted to economy class. Ultimately, the pain was not as
bad as it might have been, and at the end of the year the company
announced that it had made a profit.
SUSTAINABILITY

 Part of Hilti’s mission statement is: Build a better future "We embrace our
responsibility toward society and environment. We aim to achieve
significant and sustainable profitable growth, thus securing our freedom of
action.”
 Hilti is committed to improving their environmental impact, not only within
the business world, but also by motivating their staff to change their travel
behaviour.
 In July 2008 they entered a travel awareness week with what they hope
will encourage their staff to start commuting using more sustainable
methods of transport in the future.
Cont.

 They initiated an internal sustainability management project in 2004,

agreed to the UN Global Compact in 2006, signed the Caring for Climate
Convention in 2007 and speaks out against all forms of corruption.
 Sustainability strategy for Hilti:
 Intrinsic motivation - it is part of their mission statement
 New markets - because sustainability is becoming a more and more
important issue in the building industry, it is a good way for Hilti to act
sustainable so that new companies are more likely to co-operate with
them
 Improve image - one of the aspects what customers like about Hilti, are
their green products and services they promise to provide.
CONCLUSION

 Organization is mainly process oriented

 Easy for employees at HILTI to fall into routines
 Ideas are generated not only from within the company but also from
external entities
THANK YOU….