Encyclopedae

dia
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.