Browser Wars: Microsoft Versus Netscape

Microsoft is planning the introduction of Internet Explorer along with Windows 95. Issues include how aggressive the company should be in providing its browser with Windows 95 and restricting OEMs (original-equipment manufacturers) from putting other browsers on their computers. Should Microsoft go for initial share, concentrate on stealing over time, retain customers, or enlarge the total size of the browser market? Students use a Markov process with initial states and switching probabilities to gain insight into resolving these issues. Excerpt UVA-QA-0534 Browser Wars: Microsoft versus Netscape In early 1995, Microsoft's marketing team was debating product-introduction strategy for their new Web browser, Internet Explorer. They planned to introduce their product in October 1995, a little over one year after Netscape had introduced its browser, Netscape Navigator. Microsoft's team was aware that Internet usage was about to explode in popularity. Market research revealed the following: · Netscape's browser dominated the browser industry with almost 60 percent market share in late 1994. · Subscribers capable of accessing the World Wide Web were expected to increase from 20 million in 1994 to 150 million in 2002. · Host computers connected to the Internet were expected to go up to roughly 16.2 million by 1997. . . .