Case Study Alex Springer in 2014Analysis Of Case Study Alex Springer: Strategic Leadership
Of The Digital Media Transformation
In 2013, Mathias Döpfner, CEO of the publishing house Axel Springer SE, a premier source of content in
Germany, with its popular newspapers and magazines such as Bild and Die Welt, was evaluating the
progress of his companys digital transformation. The advent of the digital revolution at the end of the
twentieth century had caused an appreciable shift in the publishing industry. Traditional print media players
were confronted with major technological advancements and changes in consumer tastes and how news
was consumed. Thus, the challenge for Axel Springer was in finding fresh ways to distribute, monetize, and
further develop its old product. This had required the firm to re-evaluate and adapt its corporate strategy to
most effectively align with the new age. Döpfner had directed Axel Springer to approach this task with a
two-stage digital transformation strategy process. Beginning in 2006, the company focused on organic
growth and late-stage digital acquisitions. This stage of the strategy process had centered around
profitability and the infusion of digitization into the corporate culture. In 2013, the second stage of the
strategy process was driven by Döpfners formulation of the firms corporate mission to become The
Leading Digital Publisher and his defining the companys business as its branded content and not its
distribution channels. With this new strategy, Axel Springer intended to espouse early-stage investments
and entrepreneurship and grow revenue through three business models: paid content, marketing, and
classified advertising. As of 2013, Döpfners two-stage digital transformation strategy had been a stunning
success. Axel Springer had more than 12,800 employees, total revenues of $3.9 billion, and EBITDA of
$625 million. The company had exceeded the goals it had set for digital media contributions to revenue and
EBITDA, achieved reach in 44 countries, and serviced 98 million unique digital visitors worldwide. Looking
forward in April 2014, however, it was clear that the future still held many challenges. Döpfner knew that
Axel Springer would need to continue to successfully balance digital and traditional media business
strategies, further reestablish the firms identity, and continue to pioneer the cultural transition within the
organization. Most importantly, he realized the urgency of preparing his organization for the looming battle
between digitally transforming old media content providers (like Axel Springer) and new giant digital
technology experts (like Google) transforming themselves into media companies. He also pondered
whether it would be possible, and if so how, to mobilize a sufficiently powerful coalition to help the digitally
transforming old media content providers in that battle.
Learning Objective
This case is intended for use in a course on evaluating the implications of, and navigating the difficulties
associated with, a corporation-wide product, infrastructure, and cultural transformation. The case explores
Axel Springers evolution and the strategic decisions made along the way to turning itself from the leading
print, to the leading digital, content provider in Germany.
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1. How would you summarize Mathias Döpfners 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 companys digital transformation as it stands in 2014?
2. What did Kai Diekmann, Peter Würtenberger, and Martin Sinner learn from their 10 months in Silicon
Valley and how did the incorporate these lessons into Axel Springers transformation? Moreover, what
signals did their trip send to the organization
3. What are the strategic challenges that Axel Springer faces in the next three to five years and how
should they be addressed? In particular, what should be Axel Springers global strategy? How should
Döpfner navigate the dynamics between his firms local (e.g. classifieds) and international (e.g.
advertising) interests?
4. Beyond 2014, who is best positioned to take advantage of the evolving digital landscape: the old media
content experts or the new media technology experts? Why? How can Axel Spring effectively fight
against Google and other firms that may negatively impact the Fair Search and Fair Share
environment referenced in the case?
5. If you were Mathias Döpfner, what would you like the digitally transformed publishing industry to look
like in 2020? How would you want to strategically position Axel Springer in that transformed industry,
and what would be the distinctive competencies necessary to occupy, defend and leverage that desired
strategic position? In particular, what would be the role of the companys Silicon Valley outpost to
support a winning corporate strategy?
