Bertelsmann, a global media company, which includes television, books, music, and print, is considering buying publisher Random House. Background to purchase set forth in the case (UV1610), the publishing industry is showing declining profitability, increasing celebrity author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision Bertelsmann recent emphasis on multimedia operations, the development of which could threaten Bertelsmann traditional printing operations. In the case described the purchase of the Bertelsmann Random House, and begins to make a clear strategy for the General Director for the purchase. As Bertelsmann makes a series of transactions to be stronger in the delivery of content, the difficulties with the implementation of new strategies in the current corporate structure is identified. In the case leaves the reader considering Bertelsmann, which should focus further investments and what structure will support the cultural shift. Case C (UV1613) shows, Bertelsmann decision on reorganization of all e-commerce in a single division. "Hide
by Jeanne M. Liedtka, Emily Jean Gibbons Source: Darden School of Business 8 pages. Publication Date: October 10, 2000. Prod. #: UV1612-PDF-ENG
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