Strategy
In the years ahead, Bertelsmann will continue to invest heavily in its businesses as part of the Boost strategy. Between 2021 and 2026, 5 to 7 billion euros will be spent on putting the Boost strategy into action. In 2023 alone, 1.4 billion euros were invested. The objective behind the Boost strategy is to create sustainable organic growth by forming strong units and investing in companies and lines of business that benefit from digitalization, the rising demand for online education and growing consumer needs. By doing so, Bertelsmann is aiming for a faster-growing, more digital, more international and more diversified business portfolio.
The Group’s strategy is guided by five strategic growth priorities.
National Media Champions: Bertelsmann is building national media champions in its core markets. This will create strong alliances anchored in local markets that can excel with offers across all media genres, as well as with high reach.
Global Content: Bertelsmann is intensifying its focus on expanding its global content businesses. RTL Group’s production arm Fremantle, the Penguin Random House book publishing group and the music company BMG are investing large sums in the production of new content and the acquisition of attractive book rights and music catalogs, respectively.
Global Services: Bertelsmann is prioritizing the expansion of its international services business for clients from various industries. The focus is on supply chain solutions, financial services and IT services for the digital transformation of companies.
Education: Education is one of the largest sectors of the global economy. Bertelsmann is successfully active in the field of education and training in numerous countries. This commitment is to be expanded organically and through acquisitions, including with investments in new products and content.
Investment Portfolio: Through a global network of funds, Bertelsmann secures attractive investments and access to innovative companies. Bertelsmann intends to expand this investment network, increasingly in cooperation with external funds. The Bertelsmann Next unit fast-tracks the entrepreneurial development of new growth industries and lines of business.
To ensure that the Group is well positioned for the future, Bertelsmann is expanding its corporate strategy. Going forward, growth is to be advanced in four directions, including the existing Boost strategy. The second thrust, “Next,” refers to the planned establishment of new lines of business with a long-term revenue potential of around one billion euros. The third thrust, "Breakout," is about expanding existing businesses and extending their value chains by merging with other companies. The fourth and final thrust is the to expand businesses in particularly promising regions.
Media
Champions
Bertelsmann Expanded Group Strategy
Accelerate organic and acquisitive growth of existing businesses
2021–2026
In addition to the US, review expansion select businesses in Brazil, India and Mexico
Develop new businesses with €1bn revenues in the long term
Merge existing businesses with other companies:
- Accelerated growth
- Expansion of value chain
- Value creation through synergies