Mozilla Firefox - Porter analysis

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  • Mozilla Firefox - Porter analysis

    1. 1. Marketing Management Spring 2009 Project team members: Riccardo Bettinelli Gim Chuan Goh Agnieszka Czecior Jakob Marovt Carolina K. Ruggiero
    2. 2. Mozilla Corporation - Porter`s five forces <ul><li>Switching costs : depend on different type of users, with broader internet audience costs are growing </li></ul><ul><li>Capital requirements : 3 players have more than 20 billion $ revenue => really hard for new entrants to compete </li></ul><ul><li>Brand identity : 4 very strong brands (very hard for new entrants to penetrate the market </li></ul><ul><li>Access to distribution : big established companies have better and more distribution channels than the new ones (e.g. Google advertisements for Chrome are everywhere) </li></ul><ul><li>Government policy : EU vs. Microsoft monopoly on important distribution channel (OS distribution) </li></ul>
    3. 3. Mozilla Corporation - Porter`s five forces <ul><li>High degree of dependency on Google`s revenue share (91% of Firefox`s total revenue) </li></ul><ul><li>Buyer profits : Firefox connects many users with Google services through the search bar (drives internet traffic to Google) </li></ul><ul><li>Almost none available substitute products </li></ul><ul><li>Very dependent on the number of users => affects our bargaing arguments with search engine providers </li></ul>
    4. 4. <ul><li>CR ratio - 98% </li></ul><ul><li>Switching costs : depend on different type of users </li></ul><ul><li>Differentiation : applying new features, Distribution : new platform opportunities (mobile, etc. ) </li></ul><ul><li>Growing market : 300% in last 8 years, around 10% estimation for next years </li></ul><ul><li>Different development culture (in comparison to our main competitors) is our main advantage </li></ul>Mozilla Corporation - Porter`s five forces Internet Explorer Firefox Safari Google Chrome
    5. 5. <ul><li>very few outside threats to internet browser in terms of substitute products </li></ul><ul><li>some potential substitutes in the future: interactive television, OS integrated desktop applications that use internet sources (e.g. Adobe AIR) </li></ul><ul><li>no “real” suppliers!!! </li></ul><ul><li>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 </li></ul>Mozilla Corporation - Porter`s five forces
    6. 6. Mozilla Corporation - Porter`s five forces <ul><li>our case is very specific regarding suppliers and substitutes in comparison to more “traditional” industries </li></ul><ul><li>awkward relationship between Google and Mozilla Firefox (both competitor & customer), makes Google very powerful negotiator </li></ul><ul><li>our competition is the main force affecting our market position (differentiation of our product plays important role) </li></ul><ul><li>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) </li></ul>

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