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issue 1 - Roland Berger

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The formula for growth DOSSIER #01<br />

[Continental]<br />

30%<br />

UNTOUCHED BY THE SECTOR’S PROBLEMS<br />

STOCK CHART<br />

Continental / DOW JONES<br />

increase was shown by Continental’s stock price from<br />

500%<br />

January to November 2004. The automotive supplier and<br />

400%<br />

tire manufacturer has been growing faster than the sector<br />

300%<br />

as a whole. The strategic foundation for this growth was<br />

200%<br />

provided by the tire replacement business, which<br />

100%<br />

decoupled Continental from new car sales, by consistent<br />

0%<br />

relocation of production to low-cost locales and by the<br />

1995 96 97 98 99 00 01 02 03 04<br />

company’s overall balanced product portfolio.<br />

10-year comparison against the Dow Jones Index<br />

Source: <strong>Roland</strong> <strong>Berger</strong> Strategy Consultants; Chart: Wallstreet Online<br />

think: act 21

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