CASE 2-1 ENCYCLOPEDIA BRITANNICA, Inc.

1. Describe the strategy and tactics of EBI as of 1990.

EBI as of 1990 use the business unit strategy. Business unit strategies deal
with how to create and maintain competitive advantage in each of the
industries in which a company has chosen to participate. As we know that
the mission of EBI is becoming the premiere source of knowledge. So, EBI
do every way to extended it market. We could see from the tactics that
EBI use like door to door, talking with individuals and families, persuading
them to invest in EBIs voluminous storehouse of knowledge. These ways
successful to make many parents believe that if their children use this
book, it will give many advantages. Here, EBI has the competitive
advantage. Moreover, EBI always try to make a new thing like entered a
new digital age and continue with electronic age.
2. Why was EBIs business model so successful for more
than 200 years?
Because EBI has a competitive advantage, so they can maintain well what
they have accepted. Thus, EBI always make a new innovation. First, hires
several notable scientist and scholars. This will make the EBI trustworthy
and authoritative like their brand representative. Then EBI try to enter the
digital age when it offered an electronic version to business users of LexisNexis, an information retrieval service of Mead Data Central. Then, the
company moved further into the electronic age when it published
Comptons Encyclopedia on CD. Even they moved door to door, talking
with individuals and families, persuading them toinvest in EBIs
voluminous storehouse of knowledge. In everystrategies, EBI has a clearly
target, so they can be more focus to reach their target.
3. How vulnerable was this model in the early of 1990s?
During the early 1990s, the software giant Microsoft decided to enter the
encyclopedia market. Microsoft licensed material from Funk and Wagnalls
Encyclopedia which sold its sets in supermarkets, added some publicdomain content, and released it on CD-ROM in 1993. Whereas EBI still in
their electronic age, even EBI is still moved door to door, talking with
individuals and families, persuading them to invest. This is so vulnerable,
because if EBI doesnt make a breakthrough, Microsoft will take over
their market as a premiere source of knowledge.
4. Should EBI respond to Microsofts moves? If so, how
should EBI respond? Why?
Yes, EBI should respond to Microsoft moves. EBI should do the industry
analysis or solely competitor analysis. EBI should think about innovation
again so their market still can be reached.
5. What control systems would you recommend for EBI so
that the
company can understand the potential for transforming its
business model?
As we know that there are four control systems:
1. A detector: A device that measures what is actually happening in the
process being controlled

2. An assessor: A device that determines the significance of what is

actually happening by comparing it with some standard or
expectation of what should happen
3. An effectors: A device (often called feedback) that alters behavior if
the assessors indicate the need to do so
4. A communication network: Devices that transmit information
between the detector and theassessors and between the assessors
and the effectors