Abstract

This case is about Microsoft Corporation’s (Microsoft) release of a new Beta version of its Internet Explorer (IE) web browser, IE 7 Beta 2 (IE 7) in April 2006. Though Microsoft was a late entrant in the web browser market, in the late 1990s, it used its dominance in the Operating System (OS) market to gain a 96% market share in the web browser market by June 2004. However, the release of Firefox, an open-source browser, in 2004, and the security concerns regarding the IE6 browser led to a decline in IE’s market share. The case examines the rationale behind Microsoft’s release of the new version IE browser. The case also highlights the competition between Microsoft and Google Inc. for the search-based online advertising market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the nature of competition in the global web browser market
• Understand the challenges faced by a market leader with regard to the threat of new entrants.

Keywords

Internet Explorer, Microsoft Corporation, Firefox, Web Browser, Windows Vista, Google Inc., Netscape Navigator, Operating System, Adwords, Adsense, Microsoft adCenter, Linux, MacOS, Open Source Initiative, Windows Live Search