Microsoft Volume II
Acquired
Disruption Comes at a Cost
Microsoft's strategic decision to offer Internet Explorer for free, bundled with Windows 95, marked a turning point for Netscape, leading to a dramatic decline in its stock value and ultimately its failure. Despite early success and rapid market valuation based on perceived dominance of the future internet platform, Netscape underestimated the impact of a powerful distribution channel choosing to compete against it. This pivot illustrates a crucial lesson in business: when your major distributor shifts to become a competitor, the stability of your business can erode swiftly, emphasizing the need for proactive strategic positioning in the face of competition.
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