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Q1. Why did EB fail?

I think the main reason why EB fail was because they did not understand CD-ROM
technology and they could not change their resources and competences. In ear of the
computer rising, consumer rather than buy a set of encyclopaedias, consumers could
simply use Encarta on their new PC.

Q2. Could EB have done anything differently in responding to Encarta?


Encarta and EB focused on very different markets which are Personal Computer
software and reference book publishing. When the computer become widespread, the
EB’s executives didn't accurately perceive the opportunities and threats. They didn't
realize how big the market is when EB have a multimedia CD‐ROM version and
overlook the possible impact of Encarta can disruptive. Although Encarta was
nowhere near as good an encyclopedia as EB, it can get free Encarta when consumers
purchased a Microsoft-based PC. Once given away for free, it was a viable alternative
to EB. In my opinion, if EB can find a computer company with the operating system
to create its own CD‐ROM, it may compete effectively with Encarta.

Q3. How might the idea of ‘practices’ help us to think about disruptive
innovation generally and specifically about the challenge EB faced from
Encarta?
Along with the rapid development of the network, it has a big demand for household
computers. The demand for publishing books is not as popular as before.
Technologies embody development and change over time and directly influence how
a practice is performed.

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