In 2013, CEO of the publishing house Axel Springer SE, Mathias Dopfner, a premier supply of content in Germany, using its popular papers and magazines such as Bild and Die Welt, was evaluating the improvement of his business's digital transformation. The influx of digital revolution at completion of the twentieth century had caused an appreciable shift in the publishing sector. Traditional print media players were confronted with changes and major technological advancements in consumer tastes and news was consumed. Therefore, the challenge for Axel Springer was in finding innovative ways to dis Dopfner had directed this task to be approached by Axel Springer with two-stage distinct digital conversion strategy process. Commencing in 2006, the company emphasized on organic growth and late stage digital acquisitions. This phase of the strategy procedure had centered into the corporate culture around the infusion of digitization as well as profitableness. In 2013, the second phase of the strategy process was driven by Dopfner's formulation of the company's corporate mission to become "The Leading Digital Publisher" and his defining the business's company as its branded content and not distribution channels. Beside this new strategy, Axel Springer proposed to espouse early-stage investments and the entrepreneurship and cultivate revenue through three business model: promotion, paid content, and classified advertising.
As of 2013, Dopfner's two-phase digital transformation strategy had been a spectacular success. Axel Springer had more than 12,800 employees, total revenues of $3.9 billion, and EBITDA of $625 million. The firm had surpassed the targets it had set to sales and EBITDA for digital media contributions, accomplished extension in 44 states, and serviced 98 million unique digital visitors world-wide. Looking ahead in April 2014, nonetheless, it was clear that the future still held many challenges. Dopfner understood that Axel Springer will have to continue to balance traditional and digital media company strategies, further reestablish the firm's identity, and continue to initiate the cultural transition within the organization. Most essentially, he achieved the urgency of developing his organization for the awaiting crises amongst digitally converting old media content (like Axel Springer) and advent giant digital technology professionals (like Google) converting themselves into media organizations. He also pondered whether it would not be impossible, and when so how, to mobilize a coalition that was sufficiently powerful to aid the digitally transforming old media content providers because battle.
PUBLICATION DATE: June 30, 2014 PRODUCT #: E522-PDF-ENG
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