Values

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