1) Between 2000 and 2005, what was the prevailing conceptualization of the business role of the ongoing digital transformations? What were Mr Döpfner’s key strategic initiatives? 2) In the initial phase (2000 -2006), Mr Döpfner’s seemed to believe in first mover advantages. But to what extent do FMAs exist in the digital arena? 3) How would you assess Döpfner’s 2013 corporate strategy framework? What are his assumptions? Do you agree with them? What would you recommend to Mr Dopfner?

1. Axel Springer’s digital transformations
Group 3
Sarah Bennani Vladimir Pushmin Anton Telepnev Maria Zatkova
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2. In 2000-2005 the digital transformation was one of the three key
pillars of the business strategy
Conceptualization
The digital transformation was perceived as a transfusion of
technologies, a new opportunity to complement its current
product line and create more revenue and cut costs in a
consumer-orientated way
As part of this strategy, the company became more involved in
the Internet sector, produced new web services for advertisers,
launched general interest portal, several publications, digital TV
guide as well as bought a leading real estate service website
and 49% in StepStone platform.
Key strategic initiatives in 2000-2005
Divestment of unprofitable business
operations
Reduction in employee base
Internal consolidation
Launch of new publications
Consolidation of management
functions
Strengthening of company position in
digital advertising market

3. In the context of digital arena, first mover advantage exists, but there is
a high chance of failure, therefore, follower strategy can be used
Digital arena
Very fast introduction
of new technologies
Both technology and consumer
acceptance advance rapidly
Fast growing market create
competitive space for followers
Possibility to observe situation in
the market, hence exploit
pioneers mistakes
Possibility to learn at almost no
cost, e.g. avoid high R&D and
marketing costs
Follower can enjoy higher profits,
as there was no high set up costs
Follower can beat pioneers by
taking the product from niche
to mass market
Search engine Web browser Social networking Online bookstore
Online messenger Online music streamingOnline auctionOnline food ordering
Companies with very deep pockets can
enter the market first as there is a risk of
experiencing flat sales for many years
and operational losses
Superior R&D capability and
technological forefront is
essential
Difficulties to ensure long-term
dominance, but short-term gains
are possible
Strong brand name may help to
achieve long-tern dominance and
market acceptance
First mover advantage
Second mover advantage

4. The corporate strategy framework is an effective tool to approach the future of
a digital industry, segmenting the units gives the company an advantage and
a snapshot of the way forward
Framework based on 4 new pillars: Paid Models, Marketing Models, Classified Ad Models,
Services/Holdings -> the division helped to make a full transformation into a digital world
Agreed/not agreed
• Based on the assumptions, we agree that the joining
technology and media industry is the way forward
• With the exponential development and presence of these
technologies, and their success with the general population,
shows that the media industry could use their experience
Döpfner’s 2013 corporate strategy assessment Döpfner’s assumptions
In order to increase innovation, as wanted by a business, the division of services they provide
was separated into 4 units that enabled Axel Springer to become more focused and goal-
driven
Being successful in a digital business is an important step that the company accomplished,
however in order to sustain this success, the company’s digital business needs to be more
accurate and specific about their outcomes
Hence, 2013 corporate strategy framework is a strategic tool for achieving this purpose,
however the previous strategy Axel Springer has been working with for decades, has proven
its efficiency: the digital business of Axel Springer has, throughout the years, been able to
gradually implement itself into the market, keeping track of the digital evolution
The 2013 framework bases its core idea on forcing the entire company to become digital ->
this approach, unlike the previous one, may appear to be counterproductive
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Döpfner believes that, the world’s digital companies need the
media industry and will continue to value it in the future
Collaborating with the greatest enemies in Silicon Valley, such
as Facebook, Google, ensures a close relationship with them by
experimenting life video broadcasts and instant articles
The collaboration with Silicon Valley will transfer as many
experiences as possible to its working environment
The technology industry defines its relationship with the content
industry
Therefore, Döpfner understands that the changing is the only
way not to fail
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The recommendations for Mr. Döpfner
• Build strong relationship with generation Z (post-millennium) -> the aim to focus on concretion, authenticity
and transparency
• Develop a better ad experience for consumers -> straighten the bond between Axel Springer and its
consumers
• Promote and support entrepreneurship as an opportunity for acquiring digital skills and career conversion,
and promote digital training to all decision makers involved