Microsoft vs. Netscape :: essays research papers

Battle of web browsers rounds one and twoIn 1994, Marc Anderseen invented a new way to search and retrieve information from the earnings the Netscape Navigator. Netscapes rising sales and the phenomenal growth of the Internet make its shares go through the roof and even forrader the Company had any wampum it was valued at $2.7 billion. However, the scenario didnt go that well for so long and a very powerful and ambitious man came into the picture. Bill Gates empower 2,000 of his best programmers to create a browser of his own The Explorer. The battle of the browsers officially started Microsofts share of the browser market increased from 2.9 percent at the stamp out of 1995 to more than 40 percent by the end of 1997, while Netscapes market share fell to 54 percent.The Internet was growing at an slap-up pace and many people believed that it was going to affect every business. However, Gates dismissed the Internet and Netscape as unimportant, saying that they would have no impac t on him. He quickly found out how wrong he was and how these new scourges in the environment were going to affect his business, and he managed to find the way for converting this threat into an opportunity. Thus, he changed the direction of his strategy and he entered into a new business the Internet world. He realized that he was missing out an opportunity in the market that could make his company grow in a huge way so he adopted a follower strategy, which is very wry knowing that they have always been the leaders. He strategically fit-in by matching his resources and strengths (capital, know-how and people) to the changing environment. As Netscape was ahead he needed to act quickly before it was too late, so he took advantage of his power as a leader and focused on regaining position over Netscape by adding the browser as an integral part of Windows, giving free copies to the public and forcing manufacturers to install the browser on the machine. In other words, he used his bes t real resource which was Microsoft Windows as part of the strategy and used his monopoly to stifle competition and defeat its rivals. However, this strategic choice could have never succeeded at the business level, if Microsoft wouldnt have the competitive advantage of understanding the customer and the market as they do.