Bertelsmann is a global media company whose holdings include television, books, music, and print considering the purchase of the publisher Random House. The backdrop for the purchase, is provided in the A case, a publishing industry shows declining profitability, with the rise of the celebrity author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision is Bertelsmann’s recent emphasis on multimedia operations, the development of which threate … Read more »

Bertelsmann is a global media company whose holdings include television, books, music, and print considering the purchase of the publisher Random House. The backdrop for the purchase, is provided in the A case, a publishing industry shows declining profitability, with the rise of the celebrity author advances and powerful retailers like Barnes & Noble and Amazon. Further complicating the decision is Bertelsmann’s recent emphasis on multimedia operations, the development of which threaten Bertelsmann traditional printing processes. The case B (UV1612) describes the purchase of Bertelsmann, Random House, and begins to make the CEO’s explicit strategy for the purchase. As Bertelsmann makes a number of deals to become stronger in content delivery difficulties with the implementation of new strategies are revealed in the context of the current corporate structure. The case B can decide where Bertelsmann further investments should focus on and what structure to support a cultural change in the reader. The case C (UV1613) shows Bertelsmann’s decision to reorganize all e-commerce activities in a department.
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from
Jeanne M. Liedtka,
Emily Jean Gibbons
Source: Darden School of Business
23 pages.
Publication Date: Oct 10, 2000. Prod #: UV1610-PDF-ENG
Bertelsmann (A) HBR case solution