Schickler has analyzed the strategies of the leading publishers in the world and identified fundamental ways to grow as well as basic strategy models for publishers.

1. SCHICKLER
Hamburg, March 2016
STRATEGIC OPTIONS TO GROW IN SHRINKING MARKETS
FOR PUBLISHERS
GROWTH

2. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 1
Schickler has analyzed the strategies of the leading publishers in the world and
identified fundamental ways to grow as well as basic strategy models for publishers.
In brief words
Schickler has analyzed the growth strategies of leading publishers in the world.
We have identified five strategy models from „The Consolidator” to „The Diversifier”.
All strategic models are based on the nine fundamental options to grow for publishers.
The good message: Every publisher has more than one option to grow
depending on her market position and capabilities.
Germany based Schickler is the leading consultancy firm for publishers
(> 1.000 projects) and provides strategy audits and development for publishers worldwide!

3. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 2
We have analyzed the growth strategies of the leading publishers in the world and
combined the results with own project experience.
Growth experience
Leading publishers in the world:
Analysis of their strategies
Schickler´s > 750 publishing projects:
Learnings from strategy definition
Growth rates
Success factors Market conditions
Trend analysis
+
Innovation strategies
Customer clustering
…
9 Fundamental Ways to Grow 5 Basic Strategy Models for Publishers

4. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 3
We have identified “nine fundamental ways to grow“ for publishers.
Nine fundamental ways to grow
Buy new
business
Buy digital business models
Buy marketing / content
business models
Buy other business models
7
9
8
Build adjacent
business
Build market places and
thematic verticals
Build transaction based
businesses
Build infrastructure services
4
6
5
Grow core
business
Increase market penetration
and profitability (Efficiency)
Consolidate the business
Digitalize the core business
1
3
2

5. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 4
We have identified five major strategy models for publishers, where efficiency is a key
driver for all of them.
Five strategy models
The Digital
EntrepreneurThe
Diversifier
The Service
Champion
The Digital
Publisher
The
Consolidator

6. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 5
“The Consolidator” increases the market penetration and profitability with highly
efficient processes and a low cost structure.
Characteristics of “The Consolidator“
High profit margins out of the
core publishing business due
to high efficiency
A scaling organizational
structure provides shared
services and standardized
processes
Consolidates print business
by merger & acquisitions.
Builds publishing groups with
high earnings
Typical examples: Gannet
(USA), Madsack (Germany)

7. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 6
The strategy of “The Digital Publisher” focuses on expansion of the digital publishing
business.
Characteristics of “The Digital Publisher “
Mobile / online-first strategy
for all publications
Paid content models for high
value content
Acquisition / Building thematic
verticals around media brands
Leading market position either
in reach or in quality is the
basis
Typical examples: Axel
Springer (Germany), The New
York Times (USA)

8. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 7
“The Digital Entrepreneur” expands its portfolio by investing in e-commerce or
transaction business models far beyond publishing.
Characteristics of “The Digital Entrepreneur“
Building / Acquisition of digital
market places and transaction
/ e-commerce services
Creating an own digital unit
next to publishing unit
Few operational synergies to
the core business
Content becomes less
important
Typical examples: Schibsted
(Norway), Naspers (South
Africa)

9. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 8
The strategy of “The Diversifier” is to acquire new business models outside the
publishing business.
Characteristics of “The Diversifier“
Acquisition of new business
models outside the publishing
business
In many cases, these
business models have some
kind of synergies or touch
points with B2C-publishing
(eg. Business Information,
Education, Science
Publishing, etc.)
Typical examples: Holtzbrinck
(Germany), Pearson (United
Kingdom)

10. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 9
“The Service Champion” professionalizes the know-how in its service units and
transfers the services to customers outside the media market.
Characteristics of “The Service Champion“
Master of operational
excellence in its service units
and therefore a good
opportunity to grow, because
business services grow faster
than the publishing business
Professional service unit
acquires customers outside
media market
Services can be: Printing,
logistics, fulfillment, customer
care, loyalty programs, etc.
Typical examples: Arvato
Bertelsmann (Germany)

11. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 10
A precondition for strategic growth is a very high revenue stream out of the publishing
core business.
Operational Excellence as the starting point for strategic growth
Step one: Operational Excellence Step two: Strategic Growth
„Change the direction of the revenue
curve“
„Lift the revenue curve“
Time
EBITDA
Time
EBITDA
All growth strategies need a high amount of
financial resources
This money needs to come out of the
operational business
In consequence, operational excellence is a
fundamental basis for future growth
Select your favorite growths paths
Define your strategy model
1 2

12. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 11
Collection of data
(quantites, costs and
revenues, capacites)
Validation of the data by
Schickler
Schickler has also a leading competence in increasing the operation excellence.
Our Approach to Operational Excellence
Gap:
-25%
Comparison of KPI’s with
use of SCHICKLER
Benchmarking Database
by taking into account
relevant regional factors
Discussion of the results
with executives of the
publishing house
Determination of the
main optimization fields
Determining
organizational and
process requirements
Prioritizing actions
Deciding project
scope and collecting data
Using SCHICKLER
KPIs for Benchmarking
Localizing results and
aligning with management
Prioritizing efficiency
drivers & detailing actions
1 2 3 4
Best
in class
Your
company

13. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 12
Schickler has consulted publishers in all five strategic directions.
Schicklers’ experience
The Consolidator
The Digital
Publisher
The Digital
Entrepreneur
The Service
Champion
The Diversifier
2 5431
Benchmarking
Efficiency
Revenue
Enhancement
Building Scalable
Organizations
Benchmarking and
Increasing
Efficiency of
Services
Market Strategy for
Business Services
Outsourcing of
Business Services
Digital Fitness
Program
Digital Publishing
Strategy
Increase
Digital Revenues
Digital Investment
Strategy
Market Analysis
M&A – Strategy
Investment
Strategy
Market Analysis
Commercial Due
Diligence

14. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 13
Our clients usually start with a strategy best practice audit or a sector strategy.
Typical Schickler strategy projects with publishers
Project Type Main Questions Project Length
Strategy
Best Practice Audit
How is your strategy compared to international
best practice?
How well is your strategy implemented?
4 weeks
Group Strategy
What are the main growth paths for our company?
What kind of resources are needed?
Which is the best organizational structure?
6-12 weeks
Sector Strategies
What is my digital strategy?
Which is the most promising new business strategy?
What is my M&A, Printing, Logistic, … strategy?
6-8 weeks

15. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 14
Why is Schickler a choice to consider for a strategy project in a publishing company?
Leading Media Consulting Experience in Europe
Leading media experts in Europe
> 250 clients in publishing and media
> 1.000 projects in the media industry
> 30 professionals with media expertise
> Biggest benchmark database for publishers
Broad network to media companies and executives worldwide
Project experience in Europa, Asia, the Gulf Region and America
Much more media business experience compared to typical local consultants
Much deeper in the business compared to typical international top management consultants
SCHICKLER Media Experience

16. SCHICKLER
Growth - Strategic options for publishers March 2016 Page 15
Find out more about us:
www.schickler.com
Our blog on digital innovation www.schicklernext.com
LinkedIn-Group “Publishing, operational excellence and strategy for
newspapers” https://www.linkedin.com/groups/8345270
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https://www.facebook.com/SCHICKLER.Beratung
https://twitter.com/SCHICKLER1
…or visit us.
Contact Information
Please contact us …
Rolf-Dieter Lafrenz
Partner
Phone: +49 40 - 3766500
Mobile: +49 178 - 38665 21
E-Mail: r-d.lafrenz@schickler.de
https://de.linkedin.com/in/
rolfdieterlafrenz
Group
Company