But we need to explore today whether you and your company have crossed the line netscape programmers continue working around the clock in a race to meet mozilla's release date just one small part of mozilla's crusade for what they consider a healthier internet mozilla is a non-profit built by a.
Global community of so-called mozillians hi everybody mozilla is one of the greatest tech organizations of the 21st century they built some of the best tech products ever built and especially in this fast growing tech world that we live in mozilla is among those rare companies that is able to offer.
World-class tech products without invading the privacy of its users in fact if you're a 90s kid you would know that mozilla was our go to internet browser because internet explorer felt like this but as we all saw suddenly we all stopped using mozilla firefox and out of.
Nowhere google chrome became the most dominating player in the browser industry so in this episode today let's try to understand why is mozilla considered to be so great in spite of not being a market leader how did mozilla fail in spite of delivering some of the best and the cheapest products in the world and as students and.
Entrepreneurs what are the lessons that we need to learn from the tragedy of mozilla so that we can avoid becoming one this video is brought to you by coin switch but more on this at the end of the video this is a story that dates back to early 1990s during this time millions of.
American households started to have personal computers for the first time until now the person computer market was being dominated by two players ibm in pcs and microsoft in operating system and both these companies had almost established a monopoly in the personal computer space and the operating system space respectively this is when the.
Second wave of the computer revolution came up and that is where we saw the rise of the internet and suddenly everyone wanted to be online so although people had pcs they did not have an instrument to use the internet seamlessly and here's where we saw the rise of the internet browser market and the king of this market was a product.
Called netscape navigator that launched in 1994. and netscape became such a massive hit that they ended up capturing 80 markets in the browser market and the way they made money was through a subscription that costed 49 and people loved it so much that their products started selling like hot cakes.
Netscape went public had a stellar ipo and within no time they had a market cap of 2.2 billion dollars and this is where bill gates realized that although they had a monopoly in the operating system space very very soon browsers will become more important than the operating system itself and already he saw netscape becoming more important.
Than microsoft so guess what microsoft came up with its own web browser called the internet explorer to kill netscape and long story short microsoft made internet explorer the default browser in windows 95 they purposefully installed certain updates to windows 95 by which the primary features of netscape were blocked and they made internet explorer.
Completely free for everyone as opposed to the 49 cost of netscape so obviously everybody shifted to internet explorer and netscape was dead in no time this is how microsoft abused its operating system advantage to kill a rival competition and for this action it was even drag to colt predatory and exclusionary business practices to.
Prevent consumers from accessing netscape's products it could offer internet explorer for free included in the os and netscape would be cut out of the business from the very first time the computer was turned on the justice department has charged microsoft with engaging in anti-competitive and exclusionary practices designed to.
Maintain its monopoly until microsoft kind of came in and punched us in the face we were the fastest growing company in history now with microsoft's future hanging in the balance the man who had declared himself as powerful as the president saw his company hauled into court accused of being law-breaking miscreants.
And had himself been forced to endure a marathon videotaped deposition now if you watch this strategy carefully you will see that there's actually a pattern that emerges by which not just microsoft even google and apple kill their competition effortlessly to tell you about it you will notice that these companies often have a base product that.
Is by far the best in the market and more importantly it is so deeply embedded into the user's life that it is almost impossible to replace it then as the tech grows these base products become platforms for other tech products and services to emerge when this happens there are a lot of developers and companies that build.
Great products and services generating billions of dollars in revenue on top of this platform but the moment these products are about to reach a peak these big tech companies use their super power to monopolize that exact same space and kill the market leader itself for example in this case in the initial days pcs was the base product which was.
Led by ibm then within some time pcs became a platform for operating systems so many developers built operating systems to compete in the platform that was created by the pcs this is where fortunately for microsoft ibm did not build an operating system itself and they gave away the contract to microsoft that is how microsoft became a market.
Leader in operating systems because every other computer manufacturer copied ibm and hosted windows operating system but like we saw as time passed microsoft became a monopoly and it became so deeply embedded in a customer's life that it almost became irreplaceable this is when the windows operating system itself became a platform wherein.
Developers started building products and services for windows and this is where we saw the rise of web browsers so many developers built web browsers for windows and one of them was netscape that went on to become a market leader now as soon as microsoft saw the rise of netscape they launched internet explorer offered it for free made it the.
Default browser and blocked netscape's prime features and eventually they monopolize the browser market space similarly apple is a monopoly in ios and app store is their platform wherein developers built products and services for the app store so when they saw the rise of spotify they immediately transformed itunes into apple music and.
Placed apple music as a direct competition to spotify they saw whatsapp growing and launched imessage they saw google sync becoming more and more popular so they came up with icloud in our case windows actually used the base product advantage or you could say that it literally used the monopoly formula to kill netscape but you know what guys.
Although netscape was dead the team of netscape did not lose their spirit at all and they desperately wanted to get back in the game so this time they opted for a completely different approach and started a non-profit organization called mozilla and one of the most important products they launched was none other than.
Mozilla firefox now the question is why does everyone call firefox legendary i mean it isn't as popular as chrome it does not have such special features that makes it stand out for non-techy people nor is it making a ton of profit so why is mozilla firefox considered to be a great work well that is because ladies and.
Gentlemen mozilla firefox is by far one of the most noble tech products of the 21st century because you see in this capitalistic tech world that we live in every single company is using your data for profits on one side you've got zakar dada who says that whatsapp is privacy focused but somehow he knows what you're talking about on whatsapp and shows you.
Accurate ads on instagram on the other side you've got google which collects so much data about you that you can't even comprehend but this is where mozilla came up as the most noble company of all and designed something called the mozilla manifesto this is like their bible that encompasses all the principles that mozilla projects must.
Abide by and bound by the principles of this manifesto they said the following number one they will offer the best tech in the world for all kinds of services including firefox for web browsing number two mozilla firefox specifically will be freely available for all and lastly firefox will collect very limited data without invading the privacy of the.
User and it will not show any kind of ads so the question is if they are not charging for the product if they are not collecting data to show ads then how do they exactly make money well one of the most prominent sources of revenue for mozilla is not a product but something called mozilla foundation and here's where you can voluntarily.
Choose to donate if you believe in mozilla's vision and at the same time they built an open source community of developers as in apart from mozilla's in-house employees any developer around the world who believed in mozilla's vision could contribute to mozilla projects and when these people start coding these codes are then reviewed by.
Senior coders who again could either be employees or volunteers and finally all the best work is compiled to launch products or updates to existing products this is how different versions of mozilla firefox were released starting from 2002 onwards and like we saw back then internet explorer was at its peak with a mammoth 95 percent market share.
And as we all saw indoor explorer was extremely slow it had a ton of security issues and lacked basic features like png image support and this is where mozilla rose to popularity and within some time it acquired a market share of 32 with more than 350 million users but in the next three years something crazy happened and mozilla's market.
Share started dropping and in the next 10 years mozilla almost hit rock bottom with a present day market share of just 4 the question is what exactly went wrong with mozilla well as it turns out just like in the 1990s browsers became more important than computers from early 2000s onwards.
Another entity became more important than the internet browser itself which were search engines and the market leader in search engines as we all know was none other than google so just like people started using internet browsers irrespective of the pcs that they bought in the early 2000s people started going.
To search engines irrespective of the browsers that they used so here's where google had a great upper hand over the browsers now i don't know how many of you actually remember this but then from 2010 onwards while we were using mozilla our internet explorer whenever we visited google there used to be a small.
Prompt at the site that used to say that google chrome is now available for you and it came up every time you visited google so merely due to repetitive prompts we ended up downloading google chrome and within no time chrome's market share started peaking as a result in the next 10 years google became the most dominating player in the browser.
Market with a market share of 66.1 percent as of 2021 and if you look closely you will see that although google had no hold over browsers its base product that is search engine became an irreplaceable product that became deeply embedded in our life as a result they got a hold over the browser market in the next five years people.
Have given me we very conveniently downloaded chrome and we forgot about mozilla firefox altogether and that is how firefox became irrelevant in our life but you know what guys the fun fact is that even today google pays mozilla close to 400 to 500 million dollars just to keep google as a default search engine in mozilla's browser now the.
Question is when mozilla just has four percent market share and is it direct competition to google's own product that's google chrome then why does google pay such a hefty amount to mozilla well that is because of something called the anti-trust regulation that could actually break down google for being a.
Monopoly in the browser market long story short what this says is that if google or for that matter any company is seen becoming a monopoly and uses unfair advantage to commit anti-competitive practices then that company might be asked to break down into different entities but unfortunately for the team of netscape.
And mozilla although google and microsoft were dragged to the court nothing significant happened and a legendary company like mozilla got crushed between the monopolies and now it is surviving at the mercy of google's paycheck this is the tragedy of mozilla wherein in spite of building the best tech in the world in spite of giving it.
Out at the cheapest rate possible in spite of building a noble tech company that actually respected the privacy of its users when nobody else did mozilla today is at the brink of extinction and this brings me to the most important part of the episode and that are the business lessons that we need to learn from the mozilla tragedy before we move.
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As much as you can offer to lose without affecting your life or your family's life if this sounds good to you go ahead and download the coinsuch app from the link in the description moving on to the lessons the first thing you need to learn about is something called blue ocean strategy and this comes from this.
Book called blue strategy which says that you could either choose to compete in the red ocean or in the blue ocean red ocean is basically the market that already has a ton of players whereas blue ocean is a new market that you can create for yourself where either you are the only player or there are no giant players or there are very few players in.
This case you see while there was fierce competition in the os space instead of going head-on with microsoft netscape tapped onto the new market by building a browser similarly apple created a blue ocean by coming up with ipad which was not even an existing category back then and in case of mozilla mozilla tried to compete in the red ocean while another.
Blue ocean was waiting to be captured which was the vp in space now although mozilla did launch their own vpn in 2020 they were already too late to the market while they were busy fighting in the red ocean not vpn and expressvpn were already creating their blue ocean since 2012 and 2009.
So every time you are in a fierce competition always remember besides making a better product you also need to try and find a new market that giants will not bother to enter lesson number two if you're in a competitive market building a barrier to compete is very very important in this case while google had a wonderful accuracy with search.
Results as time passed the very possibility of someone competing with google diminished similarly microsoft got the users and the business organizations so habituated to its product that it almost became irreplaceable but with mozilla there was barely anything that the big tech companies cannot do plus they did not.
Have a base product that was irreplaceable or was deeply embedded in a user's life so even though they had other services they could not push them as effectively as google did or as microsoft did and last and most importantly always remember no matter how noble your work is if you do not generate cash flow your.
Work will not sustain in the long run in this case mozilla gave away so much for free they do not even bother to run ads because they want you to do noble work as a result they could not generate cash flows like google did and hence they couldn't move faster into other markets and by the time they started running ads in 2020 it was already too late.
So as much as you want to do free work do remember the very same people who will use and love your services for free wouldn't care to donate when you actually need the money so instead of humbly asking for donation provide value and put a price tag on it because fortunately or unfortunately that is the rule of the capitalistic world that we.
Live in that's all from my side today guys if you learned something valuable please make sure to the like button in order to make youtube bubba happy and for more such insightful business and political case studies please subscribe to our channel thank you so much for watching i will see you in the next one bye bye.