Netscape Ipo
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Top of Form
Netscape IPO
Introduction
The case analyzes the Initial Public Offering (IPO) of Netscape Communications Inc., in order to recommend a justifiable share price for the IPO. Founded in April 1994, Netscape Communications Corporation provided a comprehensive line of client, server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks. The primary revenue generator for Netscape at the time IPO was it 's Internet Browser, Netscape Navigator. In December 1994, Netscape Navigator generated 49% and 65% of total revenues for the quarters ended March 31 1995 and June 30 1995 respectively.
Analysis
Netscape has captured a solid market share following the widespread, and mostly free distribution of the Netscape Navigator Web browser. The exploding growth of Internet and it 's wide spread used by companies and individuals stimulated a very high demand for Internet Browsers. Netscape, through it 's effective marketing and excellent product innovation was able to capture 60% of the market share and became a market leader. Netscape strategy is to capture market share by giving away it 'd Browser product free of cost initially. This is done with a view that once a market leader, it can bundle it 's other products and services as addition to Netscape Browser and charge for them. To be successful in the long run Netscape has to come up with Innovative Products. So far Netscape was successful in Browser Products compared to other Web based products. The growth of Intranets and Extranets provides potential for new products and generates need for Innovative products. It could maintain it 's competitive position provided Netscape could come with new innovations in the future. It can capitalize on it 's browser brand image to sell it 's other Interment products. It 's current competitive positions is shaken by the intensified competition from software
Top of Form
Netscape IPO
Introduction
The case analyzes the Initial Public Offering (IPO) of Netscape Communications Inc., in order to recommend a justifiable share price for the IPO. Founded in April 1994, Netscape Communications Corporation provided a comprehensive line of client, server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks. The primary revenue generator for Netscape at the time IPO was it 's Internet Browser, Netscape Navigator. In December 1994, Netscape Navigator generated 49% and 65% of total revenues for the quarters ended March 31 1995 and June 30 1995 respectively.
Analysis
Netscape has captured a solid market share following the widespread, and mostly free distribution of the Netscape Navigator Web browser. The exploding growth of Internet and it 's wide spread used by companies and individuals stimulated a very high demand for Internet Browsers. Netscape, through it 's effective marketing and excellent product innovation was able to capture 60% of the market share and became a market leader. Netscape strategy is to capture market share by giving away it 'd Browser product free of cost initially. This is done with a view that once a market leader, it can bundle it 's other products and services as addition to Netscape Browser and charge for them. To be successful in the long run Netscape has to come up with Innovative Products. So far Netscape was successful in Browser Products compared to other Web based products. The growth of Intranets and Extranets provides potential for new products and generates need for Innovative products. It could maintain it 's competitive position provided Netscape could come with new innovations in the future. It can capitalize on it 's browser brand image to sell it 's other Interment products. It 's current competitive positions is shaken by the intensified competition from software