Netscape's Work Culture

Background Note Contd...

Numerous Netscape servers were also launched within a short period of time. Netscape Communications Server, News Server, and Commerce Server were launched within a year. In total, within the first 15 months of its inception, Netscape rolled out 11 new products. Within a year of its inception, Netscape made an Initial Public Offering (IPO), which was well received by the investing public.

In 1997, Netscape broadened its product portfolio by developing Internet content services. In June 1997, Netscape launched its Communicator⁹ and in August rolled out Netcaster.¹⁰ In August 1997, Netscape also announced its plans to strengthen its presence in the browser market by forming 100 industry partnerships.

In September 1997, Netscape transformed its corporate website into Netcenter website – a site featuring news and chat group services.

During 1998, Netscape faced increasing competition from Microsoft in the browser market. Netscape therefore entered new businesses like enterprise and e-commerce software development.

By the fourth quarter of 1998, the enterprise and e-commerce software business accounted for 75% of Netscape's earnings.

In November 1998, Netscape was acquired by AOL, the world's largest online services provider.

Analysts remarked that Netscape's ability to respond quickly to market requirements was one of the main reasons for its success. The ability to introduce new versions of products in a very short span of time had made the company stand apart from thousands of startup dotcom companies that were set up during that period. Analysts said that Netscape's culture, which promoted innovation and experimentation, enabled it to adapt quickly to changing market conditions. They also said that the company's enduring principle 'Netscape Time' (See Exhibit II) had enabled it to make so many product innovations very quickly.

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9] The Communicator was a complete set of tools for browsing dynamic web content and powerful e-mail.

10] Netscape Netcaster dynamically delivers intranet and Internet information to user desktops. Netcaster allows Netscape Communicator users to subscribe to a content 'channel' - a content source much like a broadcast TV or radio channel - and receive content that they can view offline. Netcaster also enabled users to receive constant information updates in the background while they were working on other tasks.

Case Details

Case Code : HROB013
Themes: Organizational Culture
Case Length : 13 Pages
Period : 1994-2000
Organization : Netscape
Pub Date : 2001
Teaching Note : Available
Countries : USA
Industry : Information Technology

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