Ford Brook frowned and said, "Steve, the Netscape browser has monopolized the entire Internet. Will it be difficult for us to challenge it?"
Steve had obviously considered this before and responded directly, "You're right, but you're overlooking one thing: Nothing can be monopolized forever! The reason the Netscape browser is popular is that it was the world's first browser with a graphical interface. As long as we do better than they do and offer more functions, users will surely gravitate towards us."
Steve's attitude and determination were as unwavering as the foundation of his entrepreneurial beginnings. Whatever he decided, he felt compelled to pursue it. He was confident in his ability to achieve success! To him, success simply meant investing more effort than others had, which was how AOL had survived under his leadership.
Ford Brook was slightly taken aback, realizing that AOL's rise as a significant player on the Internet was not without cause; their CEO, Steve Case, possessed an unwavering tenacity and a refusal to quit!
As Ford elaborated on the potential for AOL to replace Netscape, he couldn't help but feel a surge of excitement.
"Steve, what are your plans?" Ford Brook inquired eagerly.
"First, we need to recruit talent," Steve began, his voice serious. "We're developing our own browser, but progress is too slow. We have to bring people over from the Netscape development team to accelerate the development of our AOL browser."
"Secondly, we need to create trouble for them. The Netscape browser, relying on its dominance, has made life difficult for others on the Internet, even forcing Global Online to set their homepage. We should sue them for monopolistic practices and unfair competition!"
"Thirdly, we need publicity. We must carry out extensive advertising in both the digital and physical realms!"
"These three points are fundamental. However, to truly defeat the Netscape browser, we need to devise a more innovative strategy." Steve paused, glanced around at the team, and continued, "This strategy involves bundling our services!"
Steve Case suddenly stood up, striding among the gathered team members. "When AOL first launched, we struggled to attract users. For months, we were on the verge of failing. Yet, we persisted! We approached every computer manufacturer to collaborate, convincing them to install our online service! We didn't stop until they agreed!"
"Months later, we finally succeeded when Apple decided to integrate our online service!"
"Now, we need to replicate that success, but this time by getting our browser bundled with every computer sold!"
Steve raised his arms and proclaimed, "If all computers come pre-installed with our browser, we can outmaneuver Netscape!"
Hearing Steve's plan, Ford Brook felt a wave of excitement. If this plan succeeded, it might genuinely be possible to dethrone the Netscape browser!
"Steve, you can count on Sequoia Capital's full support!" Ford declared on the spot.
That night, the team completed a comprehensive and strategic plan, which Steve dubbed "Project Cutout."
Henry was unaware that Steve Case and his team were orchestrating a conspiracy to unseat the Netscape browser from its dominant position.
Steve and Sequoia Capital joined forces, employing vigorous and ruthless methods. Within a week, they had poached more than a dozen developers from Netscape's team, including their former project lead. Meanwhile, AOL was simultaneously infiltrating the email research and development team, successfully recruiting five of its members. When Henry received this news, his expression darkened.
Before he could respond to this talent raid, AOL lodged a lawsuit against Netscape, accusing them of leveraging their monopoly and engaging in unfair competition!
Henry watched as Geely Hurt brought him the court summons, anger boiling within him. "AOL is truly despicable!"
"Chairman, AOL has sued us for monopolistic practices and for forcing Global Online to be the homepage, which harms their competitors," Geely replied, his own expression fierce, yet tinged with helplessness. It was true that the Netscape browser was exploiting its dominant position for commercial gain.
Henry nodded, affirming he understood, and then asked, "Is Lawyer Will on his way?"
"He's on his way!"
Shortly thereafter, Attorney Will hurried into the room.
Henry outlined the situation for him and asked, "Do you think we can win this lawsuit?"
Attorney Will smiled wryly and shook his head. "It'll be challenging! However, I can delay the proceedings. You should also consider adding an option in the Netscape browser's settings to allow users to choose their homepage. Even if we ultimately lose the case, provided we've made that change, the judge is unlikely to impose severe penalties—perhaps just a minor increase in damages!"
"Alright, try to manage the case, and we'll resolve the issue on the Netscape side as quickly as possible!" Henry nodded at Attorney Will.
After a brief discussion, Attorney Will departed to prepare for the case.
Henry then turned to Geely. "Keep a close watch on the actions of our employees to prevent further poaching by AOL! While they've launched this attack on us, it serves as a warning. Nicholas must learn from this to avoid a repeat. We've lost 20 to 30 technicians this time. We need to reflect not just on AOL's actions but also on our own. Are we providing sufficient compensation and benefits? Geely, evaluate these aspects carefully and draft a report for me. Concurrently, establish a legal department responsible for handling company lawsuits. I have a feeling we will see a lot of action in the future…" Henry's expression curled into a sneer.
AOL and Sequoia Capital had clearly provoked him!
Their tactics of stealing talent and launching lawsuits were brazen displays of rivalry.
With the news of Netscape being sued, the company's stock price plummeted, resulting in a loss of $200 million that day. Following this, AOL held a press conference to announce, "The original team of the Netscape Browser R&D department has left and joined our new owner, AOL, to create the best browser in history!"
After the conference, Netscape's stock continued to nosedive, and its total market value plummeted to $1.5 billion.
As major media outlets reported these developments, Netscape's stock remained under pressure.
On February 15th, a spokesperson for Netscape stated, "Netscape Browser now allows users to freely choose homepage options, eliminating any monopoly concerns!"
The next day, Global Online held a press conference announcing, "Global Online Email now boasts 250,000 users, and we are developing a plugin for the Netscape browser. Users won't need to visit the Global Online website, as they can directly log in to their Global Online Email accounts through the browser!"
The rapid succession of these two announcements restored investor confidence, especially since "Global Online Email" could be integrated into the Netscape browser, adding an enticing offer for potential users. As a result, Netscape's stock rebounded sharply.
On the following day, Netscape announced, "Netscape has acquired 108 patents relevant to the graphical interface of the browser. We will investigate any patent infringements thoroughly!"
This declaration further fueled an increase in Netscape's stock prices.
Meanwhile, AOL's leadership faced challenges.
Steve Case wore a grim expression as he addressed Jack Milton, who was in charge of email development. "Can we circumvent the Netscape browser's patents and develop a new graphical interface for our browser?"
Jack Milton responded with a bittersweet smile, "I'm afraid not. When we developed the Netscape browser, Henry Williams instructed us to establish as many patent barriers as possible. Therefore, completely avoiding Netscape's patents would be virtually impossible!"
"Let's try to navigate around their patents. If that doesn't work, that's fine too. Once our browser launches, it will be a significant move!" Steve urged, his voice serious. Steve understood that the U.S. legal system favors litigation, and lengthy lawsuits are the norm. His plan was to extend any legal disputes, allowing AOL's new browser to penetrate the market. Even if they eventually faced defeat in court and incurred fines, securing a stronghold on the market would be worth it. For AOL, the advantages far outweighed the drawbacks!
Furthermore, the U.S. government likely wouldn't support Netscape's monopolistic practices. AOL could always pay patent licensing fees as needed.
Jack Milton acknowledged Steve's strategy, "Understood!"
Jack Milton was among the leaders of Netscape's browser development team who escorted many of his colleagues to AOL. Given their rapid development pace, it wouldn't take long for them to create a new browser that mimicked Netscape's approach.
While AOL was busy executing its plans, the Netscape browser wasn't sitting idle!
Henry called upon Jonathan Jackson, the CEO of Netscape, and Hank Payne, the Chief Technology Officer. Jonathan Jackson, at 45, was an experienced professional manager with a background as a product manager for Sony in the United States. Hank Payne, 29 and a former postdoctoral fellow at Stanford University, had been promoted for his exceptional technical skills.
"AOL is launching a browser war against us! You two hold key positions—one in management and the other in technology. What's your take on this situation?" Henry inquired.
Jonathan considered for a moment and replied, "We need to remain vigilant about AOL and simultaneously enhance the Netscape browser. Jack Milton knows the Netscape browser well, and we should leverage that expertise to improve it in order to surpass them!"
Hank Payne added, "Users have reported that the Netscape browser reacts slowly and that it takes 2 to 3 seconds for webpage content to load. We must prioritize resolving this issue!"
Jonathan chimed in, "Additionally, users feel that entering URLs is cumbersome. We could introduce a favorites function, allowing users to access their preferred websites without retyping URLs. User experience is paramount for our browser's success. Given that Netscape already holds significant market share, enhancing our product should keep us ahead of AOL!"
Henry smiled, agreeing with their insights, while recognizing the importance of marketing. He recalled that in his previous experience, the Netscape browser suffered losses due to Microsoft IE's bundled integration with the operating system.
Although he was unaware of AOL's marketing strategy, he sensed that their intentions were malicious and that their tactics would not favor Netscape. Since AOL dared to challenge the Netscape browser, they must have something up their sleeves!