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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: Gerald R. Lampton who wrote (21557)11/20/1998 9:23:00 AM
From: Reginald Middleton  Read Replies (1) of 24154
 
You forgot to mention the factual mistatement of the Boulton guy. He said that offering the browser for free was not plausible economically and would hurt consumers in the long run. In fact, NSCP set the price to zero (as MSFT alleges), and reaped huge rewards from it by capitalizing on server sales, mindshare and website traffic. IF it was economically feasible for a multi-million dollar company, why was it not for a multi-billion dollar company. NSCP made a tactical error by charging "supra-normal" (an old managerial economics term) prices for a product that it initially set at a zero price and created while having comoplete control of the market. Upon the realization of zero viable competitors, NSCP failed to maintain barriers to entry and destroyed the economic viability of thier own pricing model. In other words, they tried to have thier cake and eat it too. They are many strategists and economists who will back this assertion.
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