Written November 9, 2014
Schibsted is the pride of Scandinavian corporate innovation. The meteoric rise of the media group is literally a master class on how to transform your business, how to groom leadership from within, understand and spot trends early on, and back entrepreneurs to run their company even within the group.
While Schibsted as a group is slowly getting more prominent outside Europe, their peers in the media world surely know of them. And its not an exaggeration to say, they probably get inspired from their strategy and even take a leaf (I would say more than a leaf) out of their book.
Value creation model
Their model of creating value as a group has been second to none. They have a clearly defined strategy that places emphasis on “not to do” as much as “to do”. For instance, with Blocket, for a very long time their strategy was to enter all international markets but without any JV’s (i.e. they would own 100% of Blocket in a new market). Their recipe of success was to identify a segment that fits their media model i.e. can they take their existing traffic and build more revenues with more services? Hence, a model like lead generation or comparison of electrical prices or reducing weight with experts as examples all made sense since it fit their media model in Scandinavia. The mantra was a simple cycle of traffic, services, ads, revenues (see my awesome work of art below)
Always Logged in.
The model forward is what Schibsted calls the Always Logged in experience, akin to Google or what Yahoo is trying to achieve. You login, and everything gets more personalised, from the news you consume to what ads you see on blocket (classifieds) to the other services that would make sense to you based on your interests and likes.
Entrepreneurs are entrepreneurs within Schibsted too.
Another key ingredient of their success is letting entrepreneurs be entrepreneurs within Schibsted. When they acquire a company, Schibsted tries not to change the entrepreneurs who are running it. Rumour even has it that they ease the pressure of the founders by giving them an opportunity to even sell some of their shares if its not a full blown acquisition so that they can keep carrying on without having the financial pressure. While that is just hearsay, irrespective letting entrepreneurs run their company even within Schibsted is quite a feat.
Schibsted has a pretty awesome internal grooming model too. From their world class trainee program to letting intrapreneurs run with their idea, their corporate structure feels more like an enabler than a glass roof as most companies their size might be.
SIME and Schibsted
We have been having Schibsted as a partner for 4 years in a row, and it has been a phenomenal experience for us working with their teams. We are very proud to have them as our partners this year too. Come meet the teams behind Schibsted at SIME on Tuesday!