Netscape's Work Culture

The Setback Contd..

As rich of a resource as Netscape was for technology, equally notable is at AOL the lack of that resource. AOL had a hard time understanding how to best tap into it." They felt that AOL had just paid lip service to Netscape's technology by naming Andreessen its Chief Technology Officer. According to Rob Enderle, vice president of Giga Information,¹⁹ "All Andreessen got was a corner. All they wanted was Web presence… They got the [Netscape] name, they just had to figure out how to get rid of the people."

AOL's corporate philosophy was also completely different from Netscape philosophy. Yoffie explained, "...The heart and soul of the Netscape engineers' culture was to try to change the world through technology, not to change the world through media." That difference made many employees feel that they were working in the wrong place. So most of the engineers left and Netscape was transformed from a technology to a media company. Zawinski said, "AOL is about centralization and control of content. Everything that is good about the Internet, everything that differentiates it from television, is about empowerment of the individual. I don't want to be a part of an effort that could result in the elimination of all that." Would Netscape have survived on its own had AOL not bought it in 1998, when the company was reeling under huge losses? (See Exhibit IV).

The ex-employees of Netscape did not care to answer that question. They only knew that their old company and its culture had gone forever. An analyst remarked²⁰, "Unfortunately, AOL is a good technology company that doesn't know what to do with good technology. It's sad what they did to Netscape."

Exhibits

Exhibit I: Netscape – Chronology of Events
Exhibit II: Netscape Time
Exhibit III: Benefits for Netscape Employees
Exhibit IV: Netscape Consolidated Statement of Operations

19] Giga Information is a provider of information, analysis and advice for developments and trends in computing and telecommunications.
20] David Cassel, Editor, AOLwatch, an online newsletter.

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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