Encyclopedaedia Britannica, Inc. (EBI)

Encyclopedaedia Britannica, Inc. (EBI) Colin Macfarquhar and Andrew Bell in

1768 published “Dictionary of Arts and Sciences.”

EBI’s mission: “Serving society’s need to know.”

In 19th into 20th century: EBI has been bought by Americans and moved to US.

EBI continued to enhanced its reputation as the premier source of knowledge.

Bill Benton (publisher and board

chairman) extended the EBI’s global

reach and expanded its product line.

In 1981 EBI entered the digital age

by offering Lexis-Nexis of Mead Data

but only for business users (EBI

declined to offer to any non-

business users).

In 1989, EBI targeted its CD

products for schools and libraries

(price $750).

Success with the new market, EBI moved to the new

market (individuals and families).

In 1990 EBI’s revenues hit a new high - $650 million (price

$1,500 to $2,000)

Early 1990’s Microsoft entered the encyclopedia market,

by releasing CD-ROM (1993) with price for less than $100.

Describe the strategy and tactics of EBI as of 1990

In 1989, EBI began to move even further into the electronic world of publishing Compton encyclopedia on CD. Previously, the IBA is offering electronic versions of their digital products to business users Lexis-Nexis to conduct joint improvement of information services, and refuse to offer its products to non business users such as schools, libraries, and the interests of individual users.

But this time, the IBA to expand its market share by making schools and libraries as a primary target.

In carrying out the strategy and tactics of his company, EBI using marketing strategies from door to door (door to door), talk to the whole person or family, then attempt to influence or encourage them to invest

Why was EBI’s business model so successful for more than 200 years?

EBI’s business model was so successful because of its reputation as the premier source of knowledge.

It served the needs of the society through its trustworthy and authoritative material.

It recruited notable scientists and scholars to contribute. It expounded upon cutting edge topics as taboos. As demand mushroomed it hired a permanent editorial

staff and founder of renowned ad agency as publisher and board chairman.

Later in 1990s it entered the digital media as well with 32 volumes. So with the advancement in time and technology it incorporated latest and new ideas serving the needs of the society.

3. How vulnerable was this model in the early 1990’s?

This model was highly vulnerable in 1990’s as it entered the electronic digital media. The software giant Microsoft was like a leader in the digital media. During 1990’s, Microsoft decided to enter the encyclopedia market. It licensed material from Funk & Wagnalls Encyclopedia which sold its sets in supermarkets, added some public domain content and released it on CD- ROM in 19993 and sold for just $ 100 as against encyclopedia’s $ 750. Microsoft attacked the EBI model and made this model very vulnerable in 1990.

4. Should EBI respond to Microsoft’s moves? If so, how should EBI respond? Why?

Yes

EBI can respond to Microsoft by price wars and reducing its price and bringing it in comparison to microsoft’s price. It also needs to show the society how encyclopedia is different from Encarta and bring out its USP to the society.

What control systems would you recommend for EBI so that the company can understand the potential for transforming its business model?

The company should go for a fully centralized IT system so that it can transfer its business model into the electronic age and make buying and selling of books on electronic media very simple. It needs to have its own website to transform its business model and make it fully electronic and digital.

use of bundled pricing and subscription based pricing techniques to compete with Microsoft.