AXEL SPRINGER IN 2014: STRATEGIC LEADERSHIP OF THE DIGITAL MEDIA TRANSFORMATION Harvard Case Solution & Analysis

AXEL SPRINGER IN 2014: STRATEGIC LEADERSHIP OF THE DIGITAL MEDIA TRANSFORMATION Case Solution

INTRODUCTION:

The purpose of this case study is to identify and highlight the strengths and opportunities that the management of the Axel Springer has been able to generate and exploit for the business interests in the target markets where the business operates.

It will also consider the weaknesses and threats that the business possesses in the management structure as well as the policies and strategies that drive them or might give rise to them in the near future due to the approach of the which that has been developed and adopted by the senior management of the organization.

This will assist the readers and all the relevant stakeholders in comprehensively understanding the market needs and trends and the approaches that the management of the organization is pursuing in order to exploit them and generate greater long term and short term benefits for the entity.

CASE ANALYSIS:

QUESTION 1: How would you evaluate Mathias Dopfner’s strategic leadership in the face of the digital revolution?  What key strategic actions did he take and how were they different from how most other publishers approached the situation?  How successful is the company’s digital transformation as it stands in 2014?

ANSWER:

The newly appointed CEO of the company, Mathias Dopfner, made some impressive decisions and adjustments in the present business culture, structure and priorities of the organization that proved instrumental for the turn around and improvement in the performance of the business in terms of the share price, revenues and the operating margins of the business.

The main focus and priority of the adopted policies by the CEO of the company was to develop and adopt policies and strategies that were representative of the market needs and aspirations in terms of what the customers priorities were in the target market of the company.

The drive and the shift in the policies and approaches of the management of the company for addressing the customer needs and aspirations in terms of the technological shifts and the pricing as per the purchasing power of the target market have assisted the management of the company in promoting its revenues, operating margins and the market share of the organization in the markets it operates.

The most critical efforts of the new senior management of the organization were based upon the restructuring and readdressing of the business through studying the trends and shifts in the target market and the modernization of the industry.

The other aspect of this initiative of the management of the company was the readdressing of the corporate strategy for the business by developing a two pronged strategy for the business that included the internationalization of the organization and diversification in the local markets of the home country of the company.

The main aim behind this two pronged corporate and long term strategy of the management of the company was to achieve the market leadership for the business in the respective segment of the industry.

The internationalization strategy of the management of the company for the business by the management of the company was achieved through entrance in the new and attractive markets overseas in terms of developing and the developed regions. This strategy of the management of the company for the business was achieved through acquisitions of digitally transformed organizations in these markets that included Indonesia, Finland, Ukraine, Macedonia, Russia and Estonia.

The diversification strategy of the management of the company in the local markets of the home country was achieved through expansion in the product and service offerings of the business in the local markets and penetration of the organization by acquiring the latest and modernized platforms for doing so and the initiative of the acquisition of a German TV channel by the management of the management of the company clearly exemplifies it..................

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