Values
Values
Values
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56<br />
Group Management Report<br />
Regulatory Environment<br />
Bertelsmann has radio and television operations in several<br />
European countries that are subject to regulation. Bertelsmann<br />
companies occupy leading market positions in many lines of<br />
business and may therefore have limited potential for growth<br />
through acquisition due to antitrust legislation. Because our<br />
profi t participation certifi cates and bonds are publicly listed,<br />
Bertelsmann is required to comply with applicable capital market<br />
regulations.<br />
Research and Development<br />
Bertelsmann’s competitiveness and long-term success depend<br />
in large measure on the innovative qualities of the media products<br />
and services it off ers. Research and development activities<br />
(R&D) to develop innovative and marketable products and services<br />
are therefore considered an integral part of the business<br />
strategy. At Bertelsmann, these activities take place largely in<br />
the operating units, where the understanding of customers and<br />
markets and of technological innovations and their importance<br />
for the future is greatest.<br />
RTL Group’s core business is focused on developing and purchasing<br />
new, high-revenue TV programming. Th e development<br />
of new distribution channels in the digital age is also a high<br />
priority. In addition, a wide range of R&D activities support<br />
the (ongoing) development and refi ning of online and offl ine<br />
diversifi cation businesses.<br />
Random House sets trends by discovering and nurturing new<br />
authors and publishing new titles. In addition, the establishment<br />
and expansion of e-book business worldwide and the<br />
associated development of innovative product features play<br />
an important role in the R&D process.<br />
Gruner + Jahr places great emphasis on the evolution of the<br />
publishing business along all media platforms and value chains.<br />
Additional key aspects of development are the expansion of<br />
the product and service portfolio in areas such as corporate<br />
publishing and the growth of digital business in areas such as<br />
online marketing.<br />
One particular emphasis in R&D at Arvato is to push the continuous<br />
launch and development of integrated services, advancing<br />
new business models while tapping into new application fi elds<br />
and markets. An innovative service portfolio is being developed<br />
based on specifi c customer requirements.<br />
Direct Group is focusing on the increasing interconnection of<br />
its distribution channels in the traditional club and retail book<br />
business. In addition, Direct Group is building upon its core<br />
competencies to develop additional business models in community<br />
management, e-books and even beyond the traditional<br />
media business.<br />
Innovative expertise is an important driver of Bertelsmann’s<br />
organic growth, so it is very important for the Group. Alongside<br />
market-oriented R&D activities of the operating units, Groupwide<br />
continuing education and training programs are provided,<br />
while knowledge sharing and collaboration among innovators<br />
are actively promoted in all divisions and business units. Th e<br />
venture capital fund Bertelsmann Digital Media Investments,<br />
with its portfolio of 16 investments in new companies, off ers<br />
the additional opportunity to ensure direct access to new, strategically<br />
relevant technologies and business models in digital<br />
media. Investments in R&D are not recorded separately due to<br />
the diversifi ed Group structure and the correspondingly diverse<br />
requirements this entails.<br />
Bertelsmann Annual Report 2009