Browser Wars Essay

1293 Words 6 Pages
rowser warsBrowser Wars
Managing Innovation MBA-678
Professor John Byrne
November 20, 2012
Allyson Mabry

Executive Summary
Although Netscape had first mover advantage and a strong product; Microsoft was able to knock them out of the competition for Internet browser control. This was accomplished mainly by bundling Microsoft’s Internet browser, Internet Explorer, with its operating systems. Netscape was unable to compete and was ultimately purchased by America Online. AOL can now utilize several of the Netscape’s strengths to add value to their base product as an Internet portal and in establishing the browser of the future that will be used in non-PC Internet connected devices.
Problem Statement
Microsoft is attempting to
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A new division was created to focus on online advertising, and Netscape began working on innovations that tied their web browser to their main web site.
Despite Netscape’s success, Microsoft was slow to move into the browser market, and not competitive at first. Although Internet Explorer was bundled with Windows 96, it would take four generations before Microsoft’s Internet Explorer was able to diminish Netscape’s lead in market share. According to the case, “Dataquest reported that Microsoft’s share had nearly doubled in the past year from 20% to 39%, while Netscape’s had fallen from 73% to 57%.” Microsoft’s goal was to integrate internet technologies into their already established products, beginning with it Windows 95 operating systems. Microsoft also negotiated distribution agreements with Internet service providers and online services.
Microsoft faced many legal challenges slowing its progress towards success in the browser market. The Department of Justice determined that “the company had violated the terms of a 1995 consent decree by tying the distribution of Internet Explorer to Windows 95.”

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