Strategic transformations in a disruptive digital environment.

Abstract

Abstract Purpose: This paper illustrates how two media firms, Sky Plc and Pearson Plc, adapted, reconfigured and transformed their businesses to meet the demands of an operating environment characterized by inexorable changes in digital technologies. Design/methodology/approach: The over-arching vision, corporate strategies and financial performance for both firms are examined over two business cycles. Findings: These findings illustrate why firms need to create a portfolio business that takes advantage of the market opportunities created by innovative digital technologies, whilst off-setting the risks associated with digital disruption. Practical implications: Business leaders should not dispense with the basic principles of good strategic business unit portfolio management in their attempts to take advantage of the market opportunities provided by a disruptive digital environment. Social implications: Not applicable Originality/value: This paper provides a highly original insight into two how firms placed ambitious levels of growth at the heart of their corporate strategies to seize the market opportunities provided by an increasingly digital operating environment.