Team members:

Chua Cheong Tat

Lim Jia Jia Jasmine
Lim Liang pin
Tan Jiao Jun
Tan Xue Shan
Yeo Hui Yi
Why has Netscape been so successful to date?
What appears to be its strategy? What must be
accomplished if it is to be a highly successful
going concern in the long run?
 April 1993 A Short
Early 1990s
History

Web was created. Computer Science students at

Complex coding required University of Illinois created
NCSA Mosaic
December 1994
April 1994

NCSA Mosaic arrange

Created Netscape Navigator
and gave it out for free
info into graphical
electronic menu
Jim Clark befriended Andressen,
created Netscape
Communications Corporations

Sell server software to Profit and World

companies Domination
Why has Netscape User friendly
been so successful • Graphical user interface: allows user to
to date?
navigate the internet by manipulating icons
[Products] and windows
Market • Users need not be proficient in coding to
Industry be able to use the products

Integrated Services
• Server software incorporate both browser
and server functions, allowing enterprise to
conduct full-scale electronic commerce
• Creates convenience and reduce compatibility
issues

Security
• Products were designed with enhanced
security code
• Provide assurance considering that IT tools
were relatively new and untested
Why has Netscape
been so successful
to date?

Products
[Market]
Industry

First Mover Advantage

Netscape was the “pioneer” in the web browser market. Market
potential was largely untapped

No Direct Competition
Its closest rival Spyglass Inc focused on a different market (Code
market
Why has Netscape
been so successful
to date?

Products
Market
[Industry]

Year 1991 1992 1993 1994

Number of
Internet
Users 1.2 1.7 2.3 4.95
(per 100
people)

Growth 50% 41.67% 35.29% 113.00%

What appears to be
its strategy? • “ Give away today and make money tomorrow”
• Distributed the browser for free over the internet
• Profits from selling servers software to companies
It’s Free

• Gain market share by setting new industry standards

• Products were created with features such as Chat
rooms, internet telephony.
• Through positive feedback system, they create
Differentiate complementary products to meet the demand

• Made available its standards to everyone

• Gain partners to share the profits, at the same time
allows them to develop new features
• E.g Partner with Sun on Java applets, Informix on
access to databases
Cooperation
 Innovation
What must be Leverage on high market share to
accomplished if it is gather feedback and suggestions
to be a highly to improve product features and
successful going ensure demands are met
concern in the long
run?
Intellectual
Patent technologies to ensure
Property that its product features cannot
be adopted by rival companies

Brand Loyalty
Improve brand loyalty through a
strong brand image of innovative
and reliable products and
services

Cost Control
Netscape’s incurred high
operating expenses due to R & D.
Should consider cost benefit
analysis