Marketing Management Spring 2009 Project team members: Riccardo Bettinelli Gim Chuan Goh Agnieszka Czecior Jakob Marovt Carolina K. Ruggiero

Mozilla Corporation - Porter`s five forces Switching costs : depend on different type of users, with broader internet audience costs are growing Capital requirements : 3 players have more than 20 billion $ revenue => really hard for new entrants to compete Brand identity : 4 very strong brands (very hard for new entrants to penetrate the market Access to distribution : big established companies have better and more distribution channels than the new ones (e.g. Google advertisements for Chrome are everywhere) Government policy : EU vs. Microsoft monopoly on important distribution channel (OS distribution)

Switching costs : depend on different type of users, with broader internet audience costs are growing

Capital requirements : 3 players have more than 20 billion $ revenue => really hard for new entrants to compete

Brand identity : 4 very strong brands (very hard for new entrants to penetrate the market

Access to distribution : big established companies have better and more distribution channels than the new ones (e.g. Google advertisements for Chrome are everywhere)

Government policy : EU vs. Microsoft monopoly on important distribution channel (OS distribution)

Mozilla Corporation - Porter`s five forces High degree of dependency on Google`s revenue share (91% of Firefox`s total revenue) Buyer profits : Firefox connects many users with Google services through the search bar (drives internet traffic to Google) Almost none available substitute products Very dependent on the number of users => affects our bargaing arguments with search engine providers

High degree of dependency on Google`s revenue share (91% of Firefox`s total revenue)

Buyer profits : Firefox connects many users with Google services through the search bar (drives internet traffic to Google)

Almost none available substitute products

Very dependent on the number of users => affects our bargaing arguments with search engine providers

CR ratio - 98% Switching costs : depend on different type of users Differentiation : applying new features, Distribution : new platform opportunities (mobile, etc. ) Growing market : 300% in last 8 years, around 10% estimation for next years Different development culture (in comparison to our main competitors) is our main advantage Mozilla Corporation - Porter`s five forces Internet Explorer Firefox Safari Google Chrome

CR ratio - 98%

Switching costs : depend on different type of users

Differentiation : applying new features, Distribution : new platform opportunities (mobile, etc. )

Growing market : 300% in last 8 years, around 10% estimation for next years

Different development culture (in comparison to our main competitors) is our main advantage

very few outside threats to internet browser in terms of substitute products some potential substitutes in the future: interactive television, OS integrated desktop applications that use internet sources (e.g. Adobe AIR) no “real” suppliers!!! our external developers (open-source community) are somehow suppliers of ideas & knowledge and we very much relly on their willingness to help developing our product Mozilla Corporation - Porter`s five forces

very few outside threats to internet browser in terms of substitute products

some potential substitutes in the future: interactive television, OS integrated desktop applications that use internet sources (e.g. Adobe AIR)

no “real” suppliers!!!

our external developers (open-source community) are somehow suppliers of ideas & knowledge and we very much relly on their willingness to help developing our product

Mozilla Corporation - Porter`s five forces our case is very specific regarding suppliers and substitutes in comparison to more “traditional” industries awkward relationship between Google and Mozilla Firefox (both competitor & customer), makes Google very powerful negotiator our competition is the main force affecting our market position (differentiation of our product plays important role) entrance barrier is high and factors affecting the success in browser market are very hard to determine (Opera has been trying hard but only reaches 2% of market share)

our case is very specific regarding suppliers and substitutes in comparison to more “traditional” industries

awkward relationship between Google and Mozilla Firefox (both competitor & customer), makes Google very powerful negotiator

our competition is the main force affecting our market position (differentiation of our product plays important role)

entrance barrier is high and factors affecting the success in browser market are very hard to determine (Opera has been trying hard but only reaches 2% of market share)