Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? Description

The case centers on Eyeo GmbH, a German software development company, whose main product is Adblock Plus, the world's leading ad blocking browser extension that blocks ads from appearing on the screens of individual users, both on desktops and mobile devices. Initially started as a hobby by Wladimir Palant in 2006, Adblock Plus has since been downloaded over one billion times and has helped drive, along with its competitors, the exponential use of ad block software, which numbered 380 million desktop users and 235 million mobile users, worldwide, by the start of 2017. Over its first 11 years, Eyeo -- as one of the five alliance members behind the 2014 Acceptable Ad Coalition Manifesto -- has seen itself as making the web a better experience for individual users by eliminating annoying and unwanted online ads, while its publishing industry critics -- to whom digital advertising revenue is a critical portion of their business model -- have denounced the ad blockers as "self-appointed hall monitors" of Internet advertising, setting the standards for acceptable ads and then requiring the mostly larger publishers to pay them a "whitelisting" fee, a form of "extortion". In response to ad blockers, publishers have prevented individual users of ad blocking software from visiting their site, sought to charge these users a subscription fee for access, or, in a few cases with several German media companies, even taking Eyeo to court, albeit unsuccessfully so far. Set in January 2018, the case asks which path Eyeo's three principal officers -- CTO Wladimir Palant, chairman Tim Schumacher, and CEO Till Faida -- should take the company in the future. Despite the past growth in Adblocker Plus usage and revenue, storm clouds are brewing. In recent years, as the number of global mobile phone users surpassed that of desktop users, it has become more challenging to install ad blocking software on mobile phones, compared to desktop browsers, since the individual operating systems and ecosystems of mobile phones are more tightly controlled by its overseers -- mainly Apple iPhone or Google Android. Then in December 2017, Google had announced that its popular desktop Chrome browser would now automatically block out various types of annoying ads as determined by its own Coalition for Better Ads.

Case Description Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Strategic Managment Tools Used in Case Study Analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

STEP 1. Problem Identification in Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 6. Recommendations Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

STEP 7. Basis of Recommendations for Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study

Case Analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Step 1 – Problem Identification of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? - Harvard Business School Case Study

The first step to solve HBR Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ad Users is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ad Users, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?.

The external environment analysis of Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study. PESTEL analysis of " Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

To do comprehensive PESTEL analysis of case study – Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Government policies have significant impact on the business environment of any country. The firm in “ Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ad Users is operating, firms are required to store customer data within the premises of the country. Ad Users needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ad Users in case study Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ad Users in case study “ Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ad Users in case study “ Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ad Users can compete against other competitors.

Government Scheme & Subsidies Impact on Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ad Users needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Social Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Technological Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Environmental Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Legal Factors that Impact Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study. PESTEL analysis of " Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Eyeo's Adblock Plus: Consumer Movement or Advertising Toll Booth? case study solution