Boston Consulting Group: How Companies from Central and Eastern Europe Perform in the Global Competition

• Now in its 27th edition, the Boston Consulting Group (BCG) has published its global Value Creators ranking, which analyzes the performance of publicly listed companies worldwide in terms of value creation for shareholders.
• In the 2025 edition, companies such as NVIDIA, Tesla, Arista Networks (a California-based cloud services provider), semiconductor manufacturer Broadcom, and Chinese electric vehicle producer BYD lead the ranking.
• Among European companies, only three appear in the top 100 value creators, despite the fact that they account for nearly one-fifth of the total database analyzed.

Of the 100 companies included in BCG’s global Value Creators ranking, 68 are from Asia (including 29 from India), 28 from the United States, and only three from Europe. In 19 out of the 35 industries monitored by BCG, no European company is present in the global top 10, and in another eight sectors, only one European company appears.

Europe’s strongest positions are in the pharmaceutical industry (with four companies in the top 10), followed by banking, media and publishing, and fashion and luxury brands—each with three companies represented.

The Ultimate Test of Competitiveness Is International Success

BCG’s research shows that the success of companies ranked among the top Value Creators is driven by four (plus one) key factors. The first is a clear strategy, long-term planning, and positioning in higher value-added segments. The second is operational excellence, followed by attracting and retaining talent, and innovation. These value-creating capabilities are universal—a clear strategy, deep expertise, and an agile, committed team can succeed anywhere in the world. To this, BCG adds a “plus one” factor: good timing and luck.

A real competitive advantage belongs to companies that go beyond local markets and sustainably create value across multiple countries. However, this is a major challenge that surpasses the capacity of any individual company—regional competitiveness must be consciously developed, supported by a reliable and favorable market and regulatory framework.

Central and Eastern Europe – Closing the Gap

Unfortunately, none of the companies from Central and Eastern Europe made it to the top of BCG’s Value Creators list, despite the region having many outstanding performers. László Juhász, Senior Partner responsible for Eastern Europe at BCG, writes about the conditions and recipes for international success.

Countries in the region—including the Czech Republic, Croatia, Slovakia, Slovenia, Poland, Romania, and Hungary—have undergone a historical convergence process. In 1990, GDP per capita in the region was just 27% of the EU average; today, it has reached 45%, according to BCG and World Bank analyses. From 2000 to 2024, the region recorded an average real GDP growth of 3.1% annually (at constant 2015 euro prices), which is 2.5 times faster than the euro area. On average, the region attracted €55 billion in foreign capital annually, of which €17 billion came from the EU. The annual trade surplus stood at €26 billion, and total exports reached €730 billion.

Between 2005 and 2025, hourly labor costs rose by 330%, while productivity increased by just 51%. Meanwhile, the labor force reserve (based on the working-age population and unemployment rate) fell by 70%.

“The growth in wages and employment is welcome—but the convergence model based on cheap and abundant labor is now exhausted. The main reason is the shrinking labor reserve and the narrowing gap between productivity and rising labor costs,” said László Juhász.

Examples of Successful Regional Companies

There are several paths to international success. One is integration into global value chains, via local subsidiaries specializing in supply, production, or services—such as Bosch, Samsung, Audi, Suzuki, Microsoft, or IBM. The second path is that of local champions expanding internationally, either organically or through acquisitions. Examples include: MOL, OTP, Richter, Videoton (Hungary), Orlen (Poland), Podravka (Croatia), Kolektor (Slovenia). The third path is represented by global innovators: ESET (Slovakia), BioTechUSA, Hell, Graphisoft (Hungary), Avast (Czech Republic), CCC (Poland – the largest footwear retailer in Eastern Europe).

A notable example of international expansion through acquisition is Dacia. Acquired by Renault in 1999, the brand went from producing 55,000–70,000 cars per year to 676,000 vehicles sold in 2024 across 40 countries. Renault invested €2.2 billion in Dacia and successfully repositioned it as a reliable brand with strong value for money.

Another example is the Czech group EPH, led by Daniel Křetínský, who owns Sparta Prague and is the majority shareholder in West Ham United. EPH operates in energy, industrial production, media, logistics, and postal services, with a 2024 turnover of €23.3 billion. Among other assets, it owns GLS courier services and recently acquired Royal Mail, the British postal service founded by Henry VIII. Křetínský bets on industries others consider outdated—and has often been proven right.

The Next Step – Developing Higher Value-Added Goods and Services

Despite these international success stories, only 27% of the 120 largest companies in Central and Eastern Europe are international players headquartered in the region—compared to 74% in Western Europe. In the West, only 16% are foreign-owned subsidiaries, while in the East, that share is 31%. Additionally, 41% of major companies in the region operate exclusively in their home markets, compared to just 10% in the West.

“It’s clear that the region must move beyond its role as a production or services hub and shift toward higher value-added activities. The key to future growth lies in building independent, global, innovation-driven companies,” added Juhász.

The full report can be accessed at this link.