CASE STUDY TEACHING OBJECTIVES - To complement your analytical and problem-solving skills: learning to ask the "right" questions. - To gain exposure to a VERY demanding form of pedagogy: "In a case study teaching, the instructor is a planner, host, moderator, devil's advocate, fellow-student, and a judge." [Prof. R. Christensen a leading case study professor at the Harvard Business School]. - To be prepared: 1) Read and digest the facts of the case study 2) Identify key issues, and look for data to support your analysis. 3) Use your working team to test and refine the analysis of the case. 4) Plan the approach for addressing the case's issues. 5) Plan the strategy for class participation. 6) Get engaged emotional and intellectually.

CASE STUDY CRITIQUE OBJECTIVES: - To present a complementing analysis to the one discussed in class. - To debrief students in 15 minutes: 1) Most important issues/lessons learned from case study and class discussion. 2) Present key issues not discussed during facilitation. 3) Expand on a specific management or technology issue identified in the case study. FOR CLASS MEMBERS - To provide an opportunity to learn from different perspectives and teaching dynamics. - To help in creating (renewing) the sense of fun and excitement. - To strengthen the class philosophy of high involvement in the learning process.

Pressures Changing Management Practice - Globalization - Increased emphasis on quality - Increased emphasis on customer satisfaction - Shorter time cycles - More volatile markets - Fast and unpredictable technological innovations - Multiple-company careers - Increased work-force diversity - Changing capital markets - Regulatory/government policy

The History of Encyclopedia Britannica - Founded in Scotland in 1768, but the world’s most prestigious and comprehensive encyclopedia since 1941. - Its content was revised every 4/5 years. - 1990 an all-time peak of about $650 million. With generous margins, and a compelling and stable brand. - CD-ROM came from nowhere, and then the Internet, sales decreased over 80%. - Since 1995, investment bankers tried to find a buyer. In 1996, Jacob Safra paid less than half of the firm’s book value.

How Value is Created Customer Customer Marketplace Marketspace EXCHANGE EXCHANGE Content Context Infrastructure Content Context Infrastructure Brand Brand Marketplace Marketspace

Edmund’s Current Strategy NEW COMPETITORS www.carpoint.com Microsoft Dec 99: $450 Million in sales 2,400 affiliated dealers www.kbb.com Kelley Blue Book Purely pricing information A myriad of related sites Edmund’s Current Strategy New Partners: CarFinance.com, Price Auto Outlet, and Performance Products New Car Buyer’s Workbook Road Test Centers

Dilemma of Institutions Going Online They have been penalized for not doing enough fast enough, as well as for doing too much too quickly.

THE EDMUND.COM CASE STUDY WERE: THE PRIMARY OBJECTIVES OF THE EDMUND.COM CASE STUDY WERE: 1. TO SHOW HOW INFORMATION CAN BE DISAGGREGATED TO CREATE NEW WAYS OF ADDING VALUE 2. TO EXPLORE HOW VALUE IS GENERATED IN THE “PHYSICAL” AND IN THE “VIRTUAL” WORLDS 3. DERIVE SOME PRACTICAL LESSONS FORM A COMPANY THAT TOOK ITS PRODUCT DEVELOPED FOR THE “PHYSICAL” WORLD AND PLACED ON THE “VIRTUAL” WORLD 4. TO REFLECT ON THE CHALLENGES FACED BY MANAGERS DOING BUSINESS IN BOTH WORLDS