Strategy

Boost Strategy for Sustainable Growth

Bertelsmann continued its Group-wide Boost investments in line with its five strategic growth priorities. In the years ahead, between five and seven billion euros are to be invested to lift Bertelsmann to a higher revenue and profit level. In 2022 alone, 1.6 billion euros were invested in new and existing businesses. The “Boost” strategy stipulates the formation of strong units, focusing investments on companies and lines of business that benefit from digitalization, increasing demand for online education and growing consumer needs. By doing so, Bertelsmann focuses on sustainable organic growth.

The strategy is based on five growth priorities: creating national media champions, expanding global content businesses, and strengthening Bertelsmann’s global services, education and global digital holdings. In addition, Group-wide projects were further advanced, such as training and upskilling, the implementation of ESG standards, tech & data and the achievement of climate neutrality. This strategy will also enable Bertelsmann to meet the growing competition with the major tech platforms from a position of strength.

Strategic Growth Priorities
National
Media
Champions
Global Content
Global Services
Education
Investment Portfolio
Enablers
People
ESG
Tech & Data
Communication
Target Portfolio
Strong Growth
Digital
International
Diversified
National
Media Champions
Bertelsmann is building national media champions in its core markets. In a dynamic, competitive environment, this will create strong alliances anchored in local markets that can boast offerings across all media genres as well as providing a broad reach. These national media champions also form a domestic counterweight to the major US technology platforms in their respective markets.
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Global Content
From movies, series and shows to books and music, demand for high-quality, internationally exploitable media content is seeing significant growth around the world. For this reason, Bertelsmann is increasingly focusing on expanding its global content businesses. For example, RTL Group’s production subsidiary Fremantle, the Penguin Random House book publishing group and the music company BMG are being strengthened through substantial investments in the production of new content and in the acquisition of attractive book rights and music catalogs.
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Global
Services
Global supply chains, financial flows, IT systems and customer communications require service providers that operate on a global scale too. Bertelsmann is therefore focusing on expanding its international services businesses for clients from a wide range of industries, including many global key customers. The focus is on supply chain solutions, financial services, customer relationship management and IT services for the digital transformation of companies.
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Education
Education is already one of the largest sectors of the global economy – and nowadays, advancing digitalization makes it even easier to bring knowledge to every corner of the world. Bertelsmann operates successfully in the field of online continuing education and training, for example, by serving the increasing training needs of medical professionals. This engagement is to be expanded organically and through acquisitions, including investments in new products and content.
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Investment Portfolio
A global fund network ensures Bertelsmann has attractive investments as well as access to innovative companies in various regions of the world: start-ups and young companies in the media, services and education sectors, often with a focus on future technologies, including blockchain-based technologies and the metaverse. Bertelsmann will expand this investment network and is increasingly relying on cooperation with third-party funds. The Bertelsmann Next unit drives the entrepreneurial development of new growth sectors and lines of business, including Digital Health, with a focus on the United States.
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