Bertelsmann pursues four strategic priorities in transforming itself into a fastergrowing, more digital, more international and more diversified company. Besides ongoing investments in existing businesses, Bertelsmann is increasingly opening up new lines of business that benefit from digitization, growing demand for education and growing consumption in regions such as Latin America, China and India. At the core of the value creation of all its businesses, Bertelsmann focuses especially on the innovative power of creativity.
A diverse range of creative content is at the heart of many Bertelsmann businesses. At the same time, the Group offers solutions for a wide range of business processes to clients all over the world. These core businesses are strengthened through targeted investments and acquisitions and by taking advantage of opportunities for consolidation. The Group picks up on trends and new customer requirements, for example, with additional digital offerings to complement TV programming or topic-specific media platforms (verticals). At the same time, Bertelsmann works to ensure the protection of intellectual property in the digital domain as it does elsewhere.
Bertelsmann’s business models and lines of business are also changing as a result of digitization and shifts in media use. The company is shaping this transformation with a clear focus on customers’ needs and requirements. Bertelsmann is reinventing itself, attracting new customer groups and opening up new distribution channels – TV content on every available device from TV sets to smartphones to tablets, e-books and author portals, apps and platforms tying in to established magazines, online education and digital services. The transformation to digital is a long-term endeavor that is of great importance to the company’s future.
Bertelsmann has been systematically broadening its business activities for several years, investing in fast-growing sectors. These include the education business, which is driven by the growing worldwide demand for continuing education and accredited academic degrees. In the long term, education is to become a third mainstay of revenues, alongside media content and services. Other promising fields of activity are the production of video content, the digital activities of RTL Group and Gruner + Jahr, as well as e-commerce, financial and IT services.
Bertelsmann is pursuing a targeted expansion in regions where a middle class with high purchasing power and an affinity for media and education has emerged in recent years. In the Group’s view, these primarily include Brazil, China and India. Bertelsmann already has operations and Corporate Centers in these places, and it intends to further expand this presence in the years ahead. As it expands its existing activities, Bertelsmann will also increasingly invest in the education and digital media sectors in these three countries.