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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: John Donahoe who wrote (16535)1/21/1998 9:23:00 PM
From: Keith Hankin   of 24154
 
I was referring
to a business that fails due to the superior performance of one of its competitors

It is a lot easier to have superior performance when you use the type of monopoly-leveraging tactics that MSFT has used against NSCP. The key thing to understand is that superior performance of a leveraged monopoly over its competitor is not the result of being smarter, more aggressive, better products, or better marketing, as you say. If you gave NSCP the monopoly-leveraging capability that MSFT has, I'd bet you'd see a markedly-different outcome.

What does this mean? MSFT is extremely competitive.

You are right here. However, in most sports, teams that do things to compete unfairly such as fouls get penalized for doing so. MSFT has nothing to stop them from doing anything, fair or not, except for the DOJ. Were it not for fear of DOJ prosecution, I'm sure that you'd see even more egregious behavior by MSFT.

What's stopping Netscape from giving their browser away for free?

How about the fact that it is a much-needed revenue stream? Whereas, MSFT can afford to give it away for free, especially if it means that they can then cut off NSCP's air supply, which is effectively what they are attempting to do.
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