The Importance of Understanding Your Markets

I have to confess... when I first became aware of the Internet (back somewhere in 1996 I think?) I remember thinking "Why would anyone use the Internet when they have all the info they need in a printed encyclopaedia?"

Well, it didn't take me long to realise the implications of the new online world.

Now Encyclopaedia Brittanica is thriving online - in a variety of modes. In this great interview by UK-based Econsultancy.com you can see how they have defined their key markets into four zones:
- Consumer
- Academic Institutions
- Libraries
- Schools

Online accounts for 60% of their business, but only 15% of that is from consumers.

Ian Grant (MD of Brittanica UK) gives a concise explanation of why they have chosen their current business strategy.

It's a great lesson in understanding the value in each of your markets, and thereby focusing your efforts on the best opportunities.